On June 2, NVIDIA (NVDA) CEO Jensen Huang shared his perspective on future data center connectivity options in a public speech. His core message advocating to "use copper whenever possible" quickly ignited the A-share market's high-speed copper cable connection sector.
By the close on the 4th, the high-speed copper connection sector was broadly higher. Stocks including Yidong Electronic, Dingtong Technology, and Tongding Interconnection hit their daily limit-up. Anhui Xinke New Materials Co.,Ltd. (SH600255) secured its third consecutive trading session limit-up.
It was noted that on the evenings of June 3 and 4, Xinke Materials issued separate announcements regarding abnormal stock trading volatility and risk warnings. The company emphasized that its current static price-to-earnings ratio is 256.68 and its rolling P/E ratio is 206.38, both significantly higher than the industry average. Furthermore, the latest data shows the stock's turnover rate reached 34.37%, which is notably elevated.
According to the company's abnormal trading volatility announcement, the cumulative deviation of the stock's closing price increase over three consecutive trading days from June 1 to June 3 reached 20%.
Subsequently, on the 4th, the company's stock closed at the limit-up price again, marking three straight sessions of gains. In response to the sharp price increase, the company cautioned that "the stock price has recently experienced significant volatility, and there may be a risk of decline following a substantial short-term rise. Investors are advised to invest rationally, make prudent decisions, and be mindful of investment risks."
Regarding operational status and internal reviews, the company stated its production and operations are normal, with no major changes in its internal or external business environment. After written inquiries to its controlling shareholder and the actual controller, no significant undisclosed matters requiring disclosure were identified as of the announcement date.
Additionally, the company's self-inspection revealed that certain directors and senior executives recently executed share reductions based on previously disclosed plans. As of May 27, 2026, Chairman Song Zhigang completed his reduction plan, selling 900,000 shares. As of April 14, 2026, Director and General Manager Wang Sheng also completed his plan, selling 525,000 shares.
In his recent remarks, Jensen Huang's latest views on copper suggest that the most critical future capability is not just the GPU itself, but how to achieve high-speed connections for the entire data center's computing power, memory, and bandwidth.
Huang predicted that over the next 5 to 10 years, a significant amount of copper will be used, alongside extensive use of optical devices. He advocated using copper solutions as much as possible for as long as possible, while acknowledging that copper faces inherent limitations in bandwidth and transmission distance, requiring optical technology for vertical and horizontal expansion when those limits are reached.
Xinke Materials' 2025 annual report describes the company as a significant domestic R&D and manufacturing base for copper-based materials, with strong product manufacturing and development capabilities in copper processing. Its high-end copper strip processing capacity and sales scale rank among the top in China, with its premium products having entered the supply chains of globally renowned connector companies and automotive Tier-1 suppliers.
In its stock trading risk warning announcement on the evening of the 4th, the company stated that, upon verification, it noted high market attention regarding its high-speed copper connection and high-speed copper cable projects.
The announcement clarified: "As of the date of this announcement, the high-speed copper cable project for copper connections at the company's wholly-owned subsidiary, Sichuan Xinzinenke Materials Technology Co., Ltd., has not yet commenced production and has not generated any revenue. The high-speed copper connection project at the company's equity-invested associate, Tuoxin Zhilian (Santai) Technology Co., Ltd., does not have a material impact on the company's operating performance as the associate is not consolidated into the company's financial statements."
It was also observed that Xinke Materials mentioned in its 2025 annual report that it had "achieved small-batch supply of 800G high-speed copper connection components and successfully developed 1.6T products" in the high-speed copper connection field. However, in its 2025 main business revenue, copper-based alloys accounted for 4.233 billion yuan, representing about 90% of total revenue, while wire and cable revenue was only 332 million yuan.
The 2025 annual report showed the company achieved operating revenue of 4.751 billion yuan, a year-on-year increase of 20.01%, but its net profit attributable to shareholders was 30.89 million yuan, a decrease of 50.46% year-on-year.
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