On July 1st, Xinxunda released a statement addressing its unusual stock price movements. It was noted that the company’s cumulative closing price had surged by over 30% across two consecutive trading days, signaling abnormal stock trading fluctuations. On June 30, 2026, Xinxunda finalized a capital increase in Xinxing Optoelectronics, securing a 51% ownership stake. Going forward, Xinxing Optoelectronics will primarily focus on offering compound semiconductor laser chip foundry services.
At present, the semiconductor laser chip project of Xinxing Optoelectronics in Eastern China has just initiated, and it will require a significant amount of time before construction wraps up and production can begin. Consequently, it is anticipated that this project will have little to no impact on the company’s revenue and net profit for the current year (the company is currently maintaining stable operations with its core business remaining unchanged).
Moreover, the compound semiconductor laser chip foundry sector is predominantly controlled by overseas giants, characterized by high barriers to customer certification and lengthy certification processes. Once the project commences production, it may encounter challenges such as sluggish market expansion, production capacity falling short of expectations, and heightened market competition. These factors could lead to risks of underutilized capacity and suboptimal mass production efficiency.