On October 22, reports surfaced indicating that the optical communication sector underwent a broad market correction, leading to a notable drop in Yuanjie Technology's stock price. Addressing concerns over the company's operational status, Yuanjie Technology clarified that its current production, operations, order fulfillment, and capacity expansion initiatives are all progressing smoothly. According to publicly available information, CW lasers tailored for the data center market constitute the primary products shipped by the company this year, reflecting a strong market appetite. Aligning with business requirements, the company is actively expanding its capacity and has shared the latest advancements regarding the second phase of its optoelectronic communication semiconductor chip and device R&D and production base. This phase involves a total investment of approximately RMB 1.251 billion. Presently, the project's civil engineering works, partial clean room installations, and auxiliary facilities have been finalized. The initial batch of production equipment is slated to arrive at the site shortly, paving the way for subsequent debugging processes. Production is anticipated to commence between late 2026 and early 2027.