There is a Very Important Issue in the Optical Fiber Sector That Is Rarely Seriously Analyzed by the Market: How Many of Those Rumored Expansions Are Actually Real?

English summary

In Yongding's July 29 conference call, the general manager of the Optical Fiber and Cable Business Unit, Mr. Liu, said a lot of things that are not heard in the market, and it is worth reading carefully. The truth about expansion: equipment is the biggest bottleneck. Mr. Liu revealed several internal judgments rarely seen in the market: There is no mature and reliable standard equipment available for purchase domestically. The equipment of the top four companies (YOFC, Fiberhome, Hengtong, ZTT) has been self-developed and modified over many years, and is never sold externally; imported equipment from South Korea and the United States has low efficiency and outdated technology. Two domestic companies claiming to be able to make equipment: Company A has been acquired by an expander, and its equipment is no longer sold externally; Company B has undertaken more than 5 expansion projects, but none has been successfully debugged so far. The earliest debugging started in January 2026, failed twice, and delayed the normal expansion progress of at least 5-6 projects. Qinghai Zhongli (sold in December 2025) and Futong Jiashan - among the top four, several companies made substantive contact, sent teams, and even invested funds, but ultimately withdrew around Q2 2026 due to 'high risk and weak competitiveness'. ...