Huili Ecology Subsidiary Junheng Technology to Expand Wuhan Optical Module Base, Adding 2 Million Units of Capacity

C114, September 27 (Nanshan) — Huilv Ecology has announced that, to consolidate and enhance its market position and technical capabilities in optical modules while improving R&D and production conditions and boosting operating efficiency, its controlled subsidiary Wuhan Junheng Technology Co., Ltd. plans to invest in the construction of the "Junheng Technology R&D and Production Base Project" in Wuhan East Lake High-tech Zone. The project will replace and upgrade the existing capacity at Junheng Technology's No. 3 electronics plant at 777 Guanggu 3rd Road, Wuhan East Lake New Technology Development Zone.

The announcement states that once the project is completed, the existing production lines of Junheng Technology, with an annual capacity of 1.5 million units, will undergo a comprehensive technical upgrade. The base will also add a new production line with an annual capacity of 2 million high-speed optical modules, bringing total annual capacity in the Wuhan region to 3.5 million high-speed optical modules. Junheng Technology's existing production plant will no longer be used thereafter.

The project's total investment is estimated at RMB 309 million. The final total investment amount will be based on actual investment.

Huilv Ecology said the project's capacity scale is broadly aligned with current market demand growth for 800G/1.6T optical modules and matches Junheng Technology's financing capability and phased construction schedule, representing an orderly capacity expansion.

According to available information, the optical communications business acquired by Huilv Ecology delivered strong performance, generating revenue of RMB 958 million in the first half of the year, up 74.54% year on year, with a gross margin of 20.32%. The core optical module business contributed revenue of RMB 655 million, up 202.83% year on year, with a gross margin of 21.64%.