Zhongji Xuchuang Denies Market Rumors of Material Blockages

Chinese technology company Zhongji Xuchuang has publicly denied market rumors suggesting that its upstream material supply, particularly "glare films," is subject to blockages. The company stated that its procurement channels for core materials are operating normally and its suppliers are actively providing support.

In its clarification, Zhongji Xuchuang emphasized that while assembly is one of many steps in producing optical modules, it does not equate to the entire assembly industry. The company highlighted that high-end optical modules incorporate advanced technologies like silicon photonics and coherent optics, requiring extensive reliability testing and rigorous client certification processes. Therefore, system design, integration, and manufacturing processes are considered core technologies, not mere assembly.

Zhongji Xuchuang, a significant player in the technology sector, saw its market capitalization surpass one trillion yuan (approximately $140 billion) in April. Its stock has experienced a significant rise, increasing over 900% year-over-year. The company's first-quarter earnings report indicated a revenue of 19.496 billion yuan, a 192.12% increase, with a net profit of 5.735 billion yuan, up 262.28% from the previous year.

Founded in 2005 and headquartered in Shandong Province, Zhongji Xuchuang specializes in the manufacturing of communication system equipment. Its business scope includes the research, design, and production of high-speed optoelectronic chips, modules, and subsystems.