Former teacher-led optical connectivity firm Yute Optoelectronics gets industry capital backing in Beijing Stock Exchange IPO

A new optical communications stock has completed its subscription period, with Yute Optoelectronics setting its IPO price at RMB 13.75 per share.

IPO Details

• Issue price: RMB 13.75 per share
• Public offering: 17.6667 million shares
• P/E ratio: 14.99 times
• Maximum subscription per investor: 618,300 shares, requiring a market capitalization of RMB 8.5016 million
• Expected total funds raised: Approximately RMB 243 million

Strategic Investors Lock in 30% of Offering

Before retail investors could participate, 30% of Yute's public offering had already been reserved. The company allocated 5.3 million shares for strategic placement, representing 30% of the total offering. At the issue price, seven strategic investors committed a combined RMB 72.875 million.

Key Strategic Investors

| Investor | Shares (million) | Amount (RMB million) | Share of Strategic Placement | |---|---|---|---| | Hengtong Group | 2.00 | 27.50 | 37.74% | | Wuhan CITIC Capital | 0.50 | 6.875 | — | | Yangtze Optical Fibre and Cable (YOFC) | 0.40 | 5.50 | — |

Together, these three investors acquired 2.9 million shares, accounting for 54.72% of the strategic placement.

Notably, Yute's relationship with YOFC dates back to 2011, involving prefabricated connectors and high-speed optical module micro-connection components for data centers. The company has also established partnerships with Hengtong Optoelectronics and Accelink Technologies.

In a significant development, YOFC transitioned from customer to strategic investor, while Hengtong Group—the parent company of Yute's business partner Hengtong Optoelectronics—became the largest external strategic investor. All strategic shares are subject to lock-up arrangements.

Management Participation

Yute's senior management and core employees also participated through the "Guotai Haitong Junxiang Beijing Stock Exchange Yute Optoelectronics No.1 Strategic Placement Collective Asset Management Plan," subscribing to 1.7667 million shares worth approximately RMB 24.29 million, with a 12-month lock-up period.

After the strategic placement, the remaining 12.3667 million shares were offered to the public.

Business Focus: High-Speed Optical Connectivity

Yute Optoelectronics does not manufacture complete high-speed optical modules. Instead, it operates at the "connection points" inside optical modules and data centers—producing optical connection products used within high-speed optical modules and between servers, switches, and other equipment.

As AI computing infrastructure continues evolving toward higher speeds, this company—with 2025 revenue of just RMB 333 million—has found itself at the forefront of high-speed optical connectivity.

Product Development

During a September 18 roadshow, the company stated that 400G and 800G high-speed optical module micro-connection components have achieved mass production and delivery, while 1.6T-related products developed with customers have passed testing and are ready for batch delivery.

Yute's products are ultimately used in data centers operated by Alibaba, Tencent, and ByteDance, among others.

Financial Performance

Historical Growth (2023–2025)

| Year | Revenue (RMB) | Net Profit Attributable to Parent (RMB) | |---|---|---| | 2023 | 212 million | 41.8671 million | | 2024 | 253 million | 46.4471 million | | 2025 | 333 million | 69.1695 million |

In 2025, revenue grew 31.62% year-over-year, while net profit increased nearly 49%.

2026 First Half Results

• Revenue: RMB 181 million (up 4.14% YoY)
• Net profit: RMB 36.8957 million (down 1.21% YoY)

The company attributed the slowdown partly to capacity constraints, stating that orders grew substantially in the first half while production capacity remained fully utilized. "The capacity bottleneck has become the biggest limiting factor for revenue growth," the company said in its financial report.

To address this, Yute began developing an Anhui production base in the first quarter of this year and has been increasing shipments of 400G and 800G products. The Anhui facility has been gradually ramping up production since August.

From Classroom to Boardroom: The Story of Controlling Shareholder Xie Xiaobo

Unlike many tech entrepreneurs, Yute's actual controller, Xie Xiaobo, was not the company's founder.

Yute Optoelectronics was originally established in 2006. Xie, born in 1973, spent his first career in education—far removed from optical communications.

Career Timeline

• 1995–2013: Teacher at Yueqing Hongqiao Middle School in Zhejiang (18 years)
• October 2013: Joined Yute Optoelectronics as Deputy General Manager
• April 2014: Appointed Director and General Manager
• December 2019–present: Chairman and General Manager

Over the past decade, Xie gradually consolidated control of the company. As of the prospectus date, he directly holds 28.77% of Yute's shares and controls an additional 4.45% voting rights through Huai'an Yujin, giving him total voting rights of 33.22%. He serves as the company's controlling shareholder and actual controller.

Under his leadership, Yute has transitioned from a traditional optical fiber connector company to a player in the AI-driven data center connectivity market.

Outlook

With an annual revenue of just over RMB 300 million, Yute Optoelectronics' RMB 13.75 issue price represents the market's initial valuation. The company's post-listing performance will ultimately determine its next price tag as it navigates the transition from fiber optic connectors to AI data center connectivity.