In recent days, news concerning the theft of optical modules from an overseas warehouse of Dongshan Precision (002384), with losses reportedly reaching tens of millions of US dollars, has rapidly spread in the market, drawing widespread attention from investors. In response to these market rumors, a representative from the company's securities department has provided a clear clarification: the theft at the overseas warehouse did indeed occur, but the rumored loss amount is significantly exaggerated. The reported tens of millions of dollars figure is based on an end-customer sales price calculation. The actual book cost to the company is far lower than this amount, resulting in a very limited impact on current-period profits. The impact did not meet the mandatory information disclosure threshold set by the Shenzhen Stock Exchange, which is why a separate announcement was not issued.
Looking at its secondary market performance, Dongshan Precision closed at 217.50 yuan on July 22, with a total market capitalization of approximately 398.4 billion yuan.
Despite this unexpected incident, Dongshan Precision's fundamental performance has remained robust recently, with its optical module business emerging as a core driver of its earnings growth. The company recently disclosed its preliminary financial results for the first half of 2026, forecasting a net profit attributable to shareholders of 29 billion to 30 billion yuan, representing a year-on-year increase of 282.58% to 295.78%.
The company attributed this earnings growth to multiple factors: steady growth in traditional core businesses such as consumer electronics and automotive components; the integration effects of the optical module business becoming apparent, with new capacity ramping up and new customer onboarding proceeding as expected; and returns beginning to materialize from earlier investments in data center-related industries.
Regarding its optical module operations, the company has been active recently. On July 15, Dongshan Precision met with six institutional investors, indicating that its optical chip and optical module capacity expansion projects are progressing as planned. On July 21, the company held an online investor exchange attended by over 20 institutions including E Fund Management and CITIC Securities. During the exchange, the company stated that production capacity for 800G optical modules for AI servers will continue to increase steadily, with core materials for production largely secured. A factory building at its manufacturing base in Thailand has completed its main structural construction, primarily intended for expanding optical module assembly capacity.
Furthermore, in a June 17 announcement, the company stated that its subsidiary, Source Photonics, will invest $1.2 billion to implement optical chip and optical module expansion projects in locations including Changzhou to meet the medium- to long-term procurement needs of downstream customers for AI computing server-related products.
In terms of share price movement, Dongshan Precision has performed strongly this year. On July 15, its share price hit an intraday all-time high of 280.08 yuan, representing a year-to-date maximum gain exceeding 170%, and its total market capitalization once surpassed 420 billion yuan. However, the technology sector as a whole has recently entered a corrective phase, with the optical module segment also experiencing a pullback. Since its recent peak, the stock's maximum drawdown has exceeded 30%.