Lingyi Itech (Guangdong) Company (ASX: 01688) has announced its intention to participate in the restructuring investment of Futong Group (Jiashan) Communication Technology Co., Ltd., a move set to inject significant production capacity into the AI data center fiber optic market.
The company's board of directors has approved a proposal to engage in the restructuring investment through a controlling subsidiary, with a projected total investment cost not exceeding RMB 4 billion. The objective is to secure control and operational rights over the relevant restructuring assets and business of Futong Jiashan.
Strategic Acquisition Target
Futong Jiashan is a key domestic enterprise with the rare capability to independently research and produce the entire chain of optical preform, fiber, and cable. It is strategically positioned in the high-growth segment of high-end computing power fiber optics, with a product portfolio covering single-mode fiber, multi-mode fiber, specialty polarization-maintaining fiber, hollow-core fiber, and multi-core fiber.
According to a CRU report from June 2026, Futong Group ranks fourth or fifth globally in terms of fiber production and sales scale. The top three are Yangtze Optical Fibre and Cable, Prysmian, and Hengtong Optic-Electric, with Futong's scale being comparable to that of Zhongtian Technology.
Public information highlights the industry's capacity leaders: Yangtze Optical Fibre and Cable, with over 4,000 tons of annual preform capacity; Hengtong Optic-Electric, with over 3,000 tons; and Zhongtian Technology, with approximately 3,000 tons. Futong Jiashan possesses proprietary full-synthetic preform manufacturing technology, with an estimated capacity of 1,000-1,500 tons for preforms and 30-45 million core kilometers for fiber. Its high barriers in overseas export channels, combined with the operational and internationalization support from Lingyi Itech, present significant potential for growth.
Major Manufacturing Base
Futong Jiashan, located in Xitang Town, Jiaxing, operates one of the world's largest integrated optical communication production lines. It is dedicated to the R&D, manufacturing, and sales of products across the entire industry chain, from optical preforms and fiber to cables, optical devices, and systems.
Listed as a key provincial construction project in Zhejiang, its facility involves an investment of approximately RMB 6 billion. The project aims for an annual output of 30 million core kilometers (1,000 tons) of optical preform, 30 million core kilometers of optical fiber, and 30 million core kilometers of optical cable. Upon reaching full capacity, it is expected to generate tens of billions in revenue, solidifying its position in the top tier of China's optical communication industry.
With its core production capacity, Futong Jiashan can deliver a full range of products at scale, including general communication cables, high-fiber-count cables for computing power, and various specialized fibers. It has long been a supplier for major telecom operators, serving diverse scenarios from enterprise networks and national computing hubs to data centers both domestically and abroad.
Comprehensive Technological Portfolio
The fiber optic landscape for AI data centers is categorized into several types: bend-insensitive single-mode fibers for high-density cabling, multi-mode fibers for short-reach interconnects, ultra-low loss fibers for long-distance links, and specialty fibers for specific applications. The industry is evolving towards next-generation solutions like hollow-core fiber, which offers advantages in latency and bandwidth for advanced AI clusters.
Futong Jiashan's core strength lies in its independent technological system. It has achieved breakthroughs in domestic full-synthetic preform technology, accumulating extensive intellectual property in key manufacturing processes and eliminating reliance on foreign upstream technology.
Leveraging its proprietary technology platform, the company has established a layered product system that simultaneously serves both traditional telecom networks and the burgeoning AI data center market. This full-industry-chain model is highly distinctive in a market where many smaller players only possess cable assembly capabilities and rely on external preform supply.
Business Synergy
Lingyi Itech has already established three core business areas: device-side AI, physical AI (including humanoid robots), and AI computing infrastructure. The proposed restructuring investment is intended to allow the company to enter the fiber optic communication materials application field. This move is expected to create strategic synergies with its existing AI computing power business, further enriching its layout in the AI hardware sector and enhancing its core competitiveness and sustainable profitability.
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