Tianfu Communication Plans Up to 8 Billion Yuan in Wealth Management Products

Latest Announcement

Tianfu Communication, a leading stock in the co-packaged optics (CPO) sector, announced on the evening of September 18 that its board of directors had approved the "Proposal on Using Part of Idle Own Funds for Cash Management" earlier that day.

Key Details

• The proposal authorizes the company and its subsidiaries to use up to 8 billion yuan of idle own funds for cash management.
• Funds will be used to purchase high-safety, highly liquid wealth management products.
• The authorization is valid for 12 months from the date of approval by the shareholders' meeting.
• Funds are allowed to be used on a revolving basis.
• The proposal still requires submission to an extraordinary shareholders' meeting for review.

Rationale

The company stated that, to improve fund utilization efficiency, it and its subsidiaries will reasonably utilize part of their temporarily idle own funds for cash management without affecting normal operations. This approach aims to increase fund returns and deliver greater rewards to the company and its shareholders.

Market Position and Performance

As of the market close on September 18, Tianfu Communication's share price stood at 284.66 yuan per share, with a total market capitalization exceeding 310 billion yuan.

According to the company's official website, Tianfu Communication is a global leading one-stop platform technology enterprise in the optical interconnect field. It provides comprehensive optical interconnect solutions ranging from passive optical components to active optical components. Its products are widely applied in areas such as:

• Artificial intelligence
• Data centers
• Fiber-optic communications
• LiDAR
• Biophotonics

Financial Results

Tianfu Communication's semi-annual report for 2026 showed:

| Metric | H1 2026 | YoY Change | |--------|---------|------------| | Operating revenue | 2.828 billion yuan | +15.15% | | Net profit attributable to shareholders | 1.204 billion yuan | +33.92% |

The growth in both operating revenue and net profit during the first half was primarily driven by the accelerated development of the global artificial intelligence industry and the construction of global data centers and AI supercomputing centers, which sustained steady growth in demand for high-speed optical component products.

Outlook

During an investor relations event on September 1, Tianfu Communication stated that as AI computing power infrastructure continues to advance, demand for high-speed optical interconnects is also growing rapidly. The company remains optimistic about long-term opportunities in the optical interconnect industry, particularly the medium-to-long-term growth potential of emerging technologies such as CPO and NPO. The company will continue to focus on customer needs and industry trends, intensifying efforts in product development, capacity building, and market expansion to seize opportunities presented by industry development.