en.Wedoany.com Reported - Lingyi iTech (Guangdong) Co., Ltd. plans to participate in the restructuring of China's Futong Group (Jiashan) Communication Technology Co., Ltd. through its controlling subsidiary, aiming to gain control and operational rights over Futong Jiashan's related assets and businesses, and to resume operations at this optical communication production base. Located in Xitang Town, Jiashan County, Jiaxing City, Zhejiang Province, China, the base covers approximately 1,100 mu and has already established main cable factories, optical fiber factories, and optical fiber preform factories, with businesses covering the R&D, manufacturing, and sales of preforms, optical fibers, optical cables, optical components, and optical systems.
The base has formed an industrial chain layout from upstream optical fiber preforms, midstream optical fibers and cables, to downstream optical components and systems. If this restructuring is successfully implemented, Lingyi iTech will gain control over existing factories, production facilities, and related businesses, shifting its focus from adding new plant areas to restoring, integrating, and rebuilding operational capabilities at the existing production base. The company estimates the total restructuring investment cost will not exceed 4 billion yuan, but has not yet disclosed the specific scope of acquired assets, production line restoration plans, or subsequent capacity arrangements.
China's Futong Group was once one of the country's major optical fiber and cable manufacturers, but its optical communication business has been shrinking in recent years. In 2024, its listed platform, Futong Information, was delisted due to operational performance issues; in 2025, Futong Group stated that to salvage its optical communication business segment, several subsidiaries applied for bankruptcy restructuring, aiming to resume normal production and operations. Futong Jiashan, as an existing base with production capabilities for preforms, optical fibers, and optical cables, has become the primary asset for this restructuring investment.
In terms of business performance, China's Futong Group ranked 11th in China Mobile's 2025 centralized procurement of ordinary optical cables, with a winning bid quantity of approximately 3.29 million core kilometers, only about one-tenth of the peak winning bid of 32.5 million core kilometers in the 2020-2021 centralized procurement. The decline in existing order scale means that the base's subsequent restoration involves not only restarting production facilities but also re-establishing capabilities for order acquisition, raw material supply, and product delivery.
In the second half of 2025, the optical fiber industry saw a simultaneous recovery in volume and price, renewing attention on the value of existing preform, optical fiber, and optical cable production facilities. Lingyi iTech's participation in this restructuring is centered on taking over an optical communication base that has already formed full industrial chain production conditions and promoting the resumption of operations in its existing factories and manufacturing businesses. The transaction is currently in the proposed implementation stage, and whether control can ultimately be obtained, as well as the subsequent production restoration progress, still depends on the advancement of the restructuring process.
