Changxin Bochuang: Subsidiary Signs 4.5 Billion Yuan Order for Optical Fiber and Cable Related Products

English summary

Event: Changxin Bochuang's controlling subsidiary Changxin Sheng signed an order for optical fiber and cable related products with a major customer, expected to be RMB 4.5 billion (effective from the date of signing until December 31, 2030). This agreement does not specify a fixed total sales amount; actual sales will be determined by orders confirmed by both parties and product unit prices negotiated at that time. The company recognizes revenue using the net method. Our view: The products in this signing are optical fiber and cable products. On the demand side, the company has significant customer resource advantages and channel advantages; on the procurement side, it has support from major shareholders. Advantages on both supply and demand sides ensure the company's unique position and ability to obtain reasonable profits in this transaction. We continue to be optimistic about the company's long-term investment value. Risk warning: industry development may fall short of expectations.