[News] ZJ InnoLight Subsidiary Takes Stake in PCB Giant Avary Holding

On August 11, Avary Holding released its semi-annual report for 2026. The report shows that as of June 30, Zhongji Innolight (Shanghai) Investment (hereinafter referred to as “InnoLight Investment”)—a wholly-owned subsidiary of Zhongji InnoLight (InnoLight)—held 24 million shares of Avary Holding, representing 1.04% of the company’s total share capital.

This makes ZJ InnoLight Investment the fourth-largest shareholder of Avary Holding. Based on Avary Holding’s closing price of RMB 96.67 per share on August 11, the stake is valued at approximately RMB 2.32 billion.

Indirect Investment Bridges Optical Transceiver and PCB Supply Chains

ZJ InnoLight primarily engages in the R&D, manufacturing, and sales of high-end optical transceiver, while Avary Holding specializes in the R&D, design, manufacturing, sales, and service of Printed Circuit Boards (PCBs), with applications spanning smartphones, networking equipment, servers/storage, automotive electronics, and optical modules.

From a supply chain perspective, PCB represent a critical upstream component for optical transceivers. As AI data center deployment accelerates, high-speed optical modules are rapidly transitioning toward 800G, 1.6T, and even higher data rates. This migration places stringent performance demands on upstream PCBs regarding high-speed transmission, signal integrity, high-frequency/high-speed characteristics, and interconnect density.

In the AI server sector, Avary Holding has developed high-tier High Density Interconnect (HDI) boards and embedded-component technologies designed for GPU modules. Its high-tier HDI products have successfully penetrated the AI server market, secured qualification from select server and cloud service providers (CSPs), and entered mass production.

In high-speed optical transceivers, Avary Holding’s Substrate-Like PCB (SLP) products have partnered with optical module manufacturers, successfully penetrating the high-end 800G and 1.6T markets with volume shipments, while 3.2T solutions have entered the R&D stage.

Surge in Optical Module Revenue Drives Avary’s AI PCB Expansion

In 1H26, Avary Holding generated revenues of RMB 17.217 billion, a year-over-year increase of 5.14%; net profit attributable to shareholders reached RMB 1.284 billion, up 4.11% YoY. The optical transceiver PCB division experienced rapid growth, delivering sales revenues of RMB 626 million—an approximate 11-fold increase compared to the prior-year period.

In reaction to the burgeoning growth of AI servers and high-end optical interconnection, Avary Holding continues to expand its manufacturing capacity:

• March 2026: Signed an investment agreement with Huai’an Economic and Technological Development Zone to build a high-end PCB production base valued at RMB 11 billion, primarily targeted at AI computing and optical transceiver applications.
• May 2026: Acquired new industrial land in Shenzhen with plans to invest RMB 10 billion in an intelligent manufacturing base for AI high-tier SLP and Flexible Printed Circuits (FPC).

To support these capital expenditure (CapEx) requirements, Avary Holding launched a refinancing plan in July seeking to raise RMB 9.6 billion. The proceeds will mainly fund high-density interconnect build-up board projects tailored for AI servers and high-speed optical transceivers. The refinancing process is currently ongoing.

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