On the evening of August 11, 2026, PCB leader Avary Holding (Shenzhen) Co., Limited (002938.SZ) released its semi-annual report. While the financial report appeared ordinary, it captured the capital market's attention. The global optical module leader, Zhongji Innolight Co., Ltd. (300308.SZ/03308.HK), through its wholly-owned subsidiary Zhongji Innolight (Shanghai) Investment Co., Ltd., newly became the fourth-largest shareholder of Avary Holding, holding 24 million shares and a 1.04% stake.
Based on Avary Holding's closing price of 96.67 yuan per share on August 11, the market value of this stake exceeds 2.3 billion yuan. According to public information, Zhongji Innolight acquired these shares through a one-time off-market block trade in May, with the seller being Avary Holding's major shareholder, Meigang Real Estate Co., Ltd., at a transaction price of approximately 2 billion yuan. In just three months, the floating profit has exceeded 400 million yuan. Why would an optical module leader invest 2 billion yuan in a PCB company? What is Zhongji Innolight betting on?
What is the "Hidden" Intent Behind the Trade?
The public disclosure of this transaction unfolded in stages. On May 21 this year, Avary Holding announced that its controlling shareholder, Meigang Real Estate, reduced its stake by 24 million shares through a block trade, lowering its shareholding from 66.19% to 65.15%. At that time, the market knew a large investor had taken the shares, but the buyer's identity remained unknown. The mystery was only revealed in July.
On July 17, Zhongji Innolight disclosed in its post-hearing information pack for its H-share listing that on May 21, it entered into an off-market block trade with an independent third party to acquire 24 million A-shares of a Shenzhen-listed electronic components company, representing about 1% of the company's total issued share capital, for a total consideration of 2 billion yuan. The information pack also revealed that the company had total assets of about 50 billion yuan, revenue of about 40 billion yuan, and pre-tax profit of about 4.3 billion yuan as of 2025. All clues ultimately pointed to Avary Holding.
On August 11, Avary Holding's semi-annual report confirmed that Zhongji Innolight's wholly-owned subsidiary, Xuchuang Investment, had become the company's fourth-largest shareholder. Tianyancha data shows that Xuchuang Investment was established in 2025 with a registered capital of 300 million yuan and previously only invested in a private equity fund. Avary Holding is its first A-share listed company investment. Notably, Zhongji Innolight's actual investment in Xuchuang Investment was only 11 million yuan. This suggests the 2 billion yuan acquisition funds were primarily supported by the parent company's financial strength. Just on July 30, Zhongji Innolight completed its Hong Kong IPO, raising approximately 53.4 billion Hong Kong dollars from the basic offering, or up to 61.4 billion Hong Kong dollars if the over-allotment option is fully exercised.
An Upstream Investment by the Optical Module Leader
To understand the logic behind this investment, one must first grasp the two companies' positions in the industry chain. Zhongji Innolight is a global leader in high-speed optical interconnection solutions, with its core product being optical modules used for high-speed data transmission between servers, switches, and other equipment. In the first quarter of 2026, its high-speed optical module revenue reached 18.448 billion yuan, accounting for 94.6% of total revenue. The company maintains a global lead in high-speed optical modules like 400G, 800G, and 1.6T. Avary Holding, on the other hand, is a global PCB leader, with products including FPC, SLP, HDI, and RPCB. In the first half of 2026, the company achieved revenue of 17.217 billion yuan and net profit of 1.284 billion yuan.
From an industry relationship perspective, this is a strategic investment by Zhongji Innolight in an upstream supplier. A key component of optical modules is the PCB, and Avary Holding is one of the few global manufacturers capable of mass-producing high-end optical module PCBs. In the first half of 2026, Avary Holding's optical module business generated over 600 million yuan in revenue, an 11-fold increase year-on-year. Its AI server business achieved nearly 1 billion yuan in revenue. Zhongji Innolight stated in its post-hearing information pack that this investment will "strengthen its business relationship with Avary Holding." In the era of booming AI computing infrastructure, ensuring the supply security and quality stability of upstream core components is crucial for any downstream leader.
PCB's "Second Growth Curve" in the AI Computing Boom
Avary Holding has long been viewed as a "consumer electronics PCB leader," deeply tied to clients like Apple. However, as global consumer electronics demand weakens, growth potential in its traditional business is increasingly limited. The company has recently established a medium-to-long-term strategy of "consumer electronics as the base, with AI computing and automotive electronics as the second growth curve." This transformation is accelerating. In the first half of 2026, Avary Holding's automotive/server board business achieved revenue of 2.267 billion yuan, a 181.58% increase year-on-year. Of this, AI server business revenue was nearly 1 billion yuan, and optical module business revenue exceeded 600 million yuan. The gross margin for automotive/server boards reached 37.42%, a 20.59 percentage point increase year-on-year.
More noteworthy is Avary Holding's capacity expansion. In July 2026, the company announced a plan to invest 10 billion yuan in a new Shenzhen Third Park to build an AI high-end substrate and flexible circuit board manufacturing base. Just 20 days earlier, it launched a Huai'an park project for AI server and high-speed optical module HDI boards, aiming to raise 9.6 billion yuan. The total investment for the two projects this year reaches 22.7 billion yuan. Additionally, Avary Holding's R&D expenses in the first half of 2026 were 1.597 billion yuan, an increase of over 500 million yuan year-on-year, accounting for 9.28% of revenue. The company achieved key process breakthroughs in high-frequency, high-speed computing PCBs, optical module SLP, and HDI products. From consumer electronics to AI computing, Avary Holding is executing a profound strategic shift. Zhongji Innolight's 2 billion yuan bet comes precisely at this critical juncture in the transformation.
Financial Investment or Strategic Positioning?
There are currently two interpretations of this investment's nature. According to insiders who spoke to Shanghai Securities News, there is a business cooperation between Zhongji Innolight and Avary Holding, but this shareholding is a financial investment with no other arrangements for now. From a financial perspective, the investment has already generated substantial paper returns. Based on Avary Holding's closing price of 101 yuan on August 12, the market value of Zhongji Innolight's stake is approximately 2.424 billion yuan, a floating profit of over 400 million yuan, or a return of about 21%.
However, "financial investment" may be just a surface explanation. In its H-share prospectus, Zhongji Innolight clearly listed "using approximately 15% of the proceeds for strategic acquisitions and investments along the optical communication value chain" as a key purpose. The company has been continuously strengthening its optical communication industry chain ecosystem. It has previously set up industry funds with multiple institutions and has been increasing investment in upstream optical module technology incubation under the AI computing infrastructure wave. From this perspective, the 2 billion yuan stake in Avary Holding appears more like a step in Zhongji Innolight's vertical integration strategy. By using capital ties to lock in upstream high-end PCB capacity, the company aims to solidify its supply chain foundation for the continued expansion of its optical module business.
A "Mutually Beneficial" Capital Chess Game
This transaction is a carefully calculated capital move for both parties. For Zhongji Innolight, after raising over 50 billion Hong Kong dollars from its Hong Kong IPO, it urgently needs high-quality investment directions for its substantial funds. Investing in a PCB leader at a critical stage of its AI transformation can generate financial returns on the books while building strategic synergies in the industry chain—a win-win. For Avary Holding, the controlling shareholder Meigang Real Estate's large-scale share reduction plan was quickly executed. Moreover, Zhongji Innolight's stake as a global optical module leader also serves as a "brand endorsement," sending a strong signal to the market that key players in the AI industry chain are betting heavily on Avary Holding. Following the announcement, Avary Holding's share price rose nearly 5% the next day to 101.41 yuan.
On a deeper level, this transaction reflects the accelerating vertical integration of the AI computing industry chain. From optical modules to PCBs, from chips to servers, the industrial dividends from AI infrastructure construction are being transmitted step by step along the chain. Zhongji Innolight's 2 billion yuan bet is on the long-term prosperity of AI computing infrastructure, on the success of Avary Holding's transformation from consumer electronics PCBs to AI computing PCBs, and even more so on the strategic value of deep upstream and downstream chain integration. Is it a strategic trial? For an optical module leader with a market value of trillions, 2 billion yuan might be just a "strategic trial." But the trend it reveals is significant. As the AI computing race intensifies in 2026, vertical integration and capital positioning are becoming key tools for leading companies to secure future high ground. What is Zhongji Innolight betting on? Not the rise and fall of a single stock, but the industrial logic of an era. As AI moves from concept to infrastructure, and computing power extends from the cloud to every terminal, companies that can first complete vertical chain layout are the ones that will stand firm in the competition of the next decade. This 2 billion yuan investment may just be one piece of Zhongji Innolight's larger strategic puzzle.
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