Yangtze Optical's Cutlite acquisition postponed; PLZ deal proceeds

Yangtze Optical Fibre and Cable Joint Stock has announced the postponement of its proposed acquisition of Cutlite, citing failure to reach agreement on core terms, after the framework agreement expired on March 31, 2025. The company will provide further updates on Cutlite as available. Concurrently, Yangtze Optical reaffirmed its commitment to acquiring a 59.1837% equity interest in PLZ, noting that the acquisition price for PLZ is RMB239,959,832, based on the agreed equity value of RMB405,449,189. The company highlighted PLZ's increasing overseas orders, up 80% year-on-year in 2024, generating revenue of approximately RMB200 million. Yangtze Optical anticipates synergies in technology and market expansion following the PLZ deal's completion, but cautions that the closing remains subject to regulatory approvals and may face potential delays or alterations. The company also noted potential uncertainties in the future operation of PLZ, as its results may be affected by macroeconomic conditions.