CIG Shanghai stock volatility prompts clarification on CPO, LPO businesses

CIG Shanghai’s A-share stock (SSE:603083) saw abnormal fluctuations from September 10 to September 12, 2025, with its daily closing price accumulating a deviation of 20% over three consecutive trading days. This triggered a disclosure requirement. The company confirmed its daily operations, market environment, and industry policies remain unchanged, with no significant fluctuations in production costs or sales.

CIG Shanghai stated that its CPO (co-packaged optics) and LPO (linear-drive pluggable optics) businesses, which have garnered market attention, are still in early stages. The company currently does not produce CPO-enabled chips, and core CPO components are in the R&D and design phase, generating no revenue. LPO business, while undergoing sample testing with North American customers, contributed only approximately 0.03% to the company's total operating revenue in the first half of 2025.

CIG Shanghai also noted its stock’s valuation metrics are significantly higher than the industry average. As of September 11, 2025, its static price-to-earnings ratio was 148.35, trailing price-to-earnings ratio 119.12, and price-to-book ratio 10.32. These figures exceed industry averages of 57.93, 51.30, and 4.83, respectively, signaling potential overvaluation and urging investors to exercise caution.