Overseas Warehouse Cargo Theft: Dongshan Precision Responds Impact is Limited

Author | Qian Jing

Editor | Chen Xiaoran

On July 22, Dongshan Precision (002384.SZ) issued an official response to rumors of optical module theft in overseas warehouses, confirming the event is true, but the loss scale is far lower than online versions and does not meet the legal disclosure threshold.

This episode coincides with the company's performance boom period. In the first half of 2026, Dongshan Precision's performance is forecast to increase by nearly three times, and optical modules have suddenly become the core profit pillar.

Clarifying the Controversy

Affected by the controversy, as of the close on July 22, Dongshan Precision quoted at 217.50 Yuan, down 5.84%, with a total market value of 398.4 billion Yuan.

Cailian Press verified through investor hotline to the company's Securities Department that the theft of optical modules in the overseas warehouse truly exists, and the online rumor of tens of millions of USD loss appears significantly exaggerated.

Dongshan Precision explained that the amount circulated in the market was calculated according to the terminal selling price, while the enterprise's actual book cost is relatively low. The profit impact caused by this theft is small, did not trigger the exchange's information disclosure threshold, therefore no special announcement was issued.

Against the backdrop of the AI computing power industry chain being extremely hot, the high-speed optical module market supply falls short of demand. Overseas warehouse theft incidents are not isolated cases. According to industry practitioners, 800G and 1.6T optical modules have high circulation value and small volume. Overseas logistics and warehouse control loopholes are prone to cargo loss.

For Dongshan Precision, the theft amount itself is small, but it reflects management shortcomings in global operations.

The company's optical module capacity continues to tilt towards North America. Sorsen Optoelectronics products are sent directly to cloud providers such as Meta and Google. The overseas warehouse layout is dispersed, and security management difficulty has significantly increased. If management still lags after large-scale shipment, losses will continue to erode profits.

Combined with the semi-annual performance forecast, the company's net profit attributable to shareholders for the first half of 2026 ranges from 2.9 billion Yuan to 3.0 billion Yuan, a year-on-year increase of 282.58% to 295.78%. The second quarter single quarter profit increased by 65.8% quarter-on-quarter, and the growth pace continues to accelerate.

This explosive growth began with the acquisition of Sorsen Optoelectronics in 2025. Optical modules appeared in Dongshan Precision's annual report for the first time. Although revenue contribution was only 3.58%, the segment gross margin can reach 36.74%, far higher than the 17.59% profitability level of traditional electronic circuit business.

Relying on Sorsen Optoelectronics EML optical chip IDM production line, chip self-sufficiency rate is close to 99%. This is also Dongshan Precision's key card to maintain high gross margin in the highly competitive environment of the industry.

Although the theft amount this time is not large, it also exposes loopholes in overseas supply chain control. If management cannot catch up after subsequent large-scale shipment, scattered losses will continue to erode profit levels.

Business Iteration

Transitioning from a traditional Apple supply chain PCB manufacturer to a computing power hardware platform, Dongshan Precision has completed business reshaping through continuous M&A.

Three major sectors form an operation mode with clear division of labor. PCB flexible-rigid board business stabilizes the cash flow foundation, optical modules undertake earnings elasticity, and new energy precision structural parts smooth industry cycle fluctuations.

Dongshan Precision is the second-largest global FPC flexible circuit board manufacturer and the third-largest global PCB manufacturer. The edge AI server PCB market share reaches 26.9%, ranking first globally. The company is deeply bound to Apple, Nvidia, and Tesla, three major industrial tracks. The top five customers revenue share exceeds 60%, among which the largest customer accounts for nearly 50%.

After completing Sorsen Optoelectronics acquisition consolidation in 2025, Dongshan Precision officially entered the top ten global optical modules, and is also one of the few Chinese companies mastering 200G Indium Phosphide optical chip in-house mass production capability.

On the industry product iteration pace, Dongshan Precision judged that 1.6T optical modules will remain the market mainstream before 2028. 3.2T product mass commercialization still requires a longer cycle. The enterprise adopts EML and silicon photonics two technical routes advancing in parallel.

In Q2 2026, Dongshan Precision's 800G optical module shipment volume was about 1 million units, 400G products shipment 700,000 units. Plus the $1.2 billion capacity expansion plan landed, the Thailand production base accelerated construction to meet North American customer delivery requirements locally, thereby reducing logistics costs and geopolitical risks.

LightCounting data shows that the 2026 global optical module market size will reach $28.5 billion, up 60% year-on-year, with data communication scenarios contributing over 70% of the increase.

Chinese manufacturers account for about 70% of the global market share. Zhongji Xuchuang and Eoptolink are firmly stable in the first tier. Dongshan Precision is in the second tier. The differentiation advantage lies in whole industry chain synergy.

The PCB sector can provide supporting supply for AI servers. Optical modules come with self-developed chips. The businesses form a linkage effect. This is a condition that the absolute majority of peers do not possess.

Traditional electronic manufacturing business growth is moderate. AI hardware has become the core driver for the next three years. Institutions generally believe that Dongshan Precision's valuation logic has switched from consumer electronics to computing power industry chain targets.

Multiple Worries

High prosperity of the track does not equal the company can rest assured.

While the optical module industry maintains a high prosperity cycle, the company's own operational shortcomings and potential track risks continue to be highlighted. This is also the core root cause of why valuation divergence among institutions continues to intensify.

Dongshan Precision is burdened by heavier debt and goodwill pressure. As of the end of March 2026, the asset-liability ratio reached 63.69%, and the overall debt scale broke through 40 billion Yuan. At the same time, the company's book goodwill balance is 4.769 billion Yuan. Only the goodwill formed from acquiring Sorsen Optoelectronics is as high as 2.8 billion Yuan.

Since 2024, the company has long relied on the M&A model to complete business expansion. Cumulative M&A investment exceeded 15 billion Yuan. It continuously generates large interest expenses. If the optical module industry prosperity downturns subsequently, the company will directly face concentrated goodwill impairment and debt pressure risk.

High customer concentration and weak global operation control are another major operational hazard for Dongshan Precision.

Among them, Apple related business contributed nearly half of the company's revenue. Plus core customers concentrated in North American cloud providers, the business structure highly dependent on the overseas market is very easily subject to impact from geopolitical policies and overseas trade environment changes. Order stability exists with uncertainty.

This overseas warehouse optical module theft incident is exactly a direct manifestation of management loopholes after Dongshan Precision's global layout. With overseas capacity continuous expansion, cross-regional warehousing O&M, logistics scheduling, and local employment management difficulty continues to rise. Operational control shortcomings are further highlighted.

The industry competitive landscape is also becoming increasingly fierce. The 800G optical module track has fallen into a price war. Head enterprises consolidate profit advantage by locking upstream optical chip long-term agreement resources, squeezing small and medium manufacturers' profit space. Even though Dongshan Precision possesses optical chip self-research capability, the landing and volume release pace of 1.6T high-end products is lower than industry leaders. Long-term market share expansion faces obvious resistance.

AI industry chain capital expenditure has phased volatility characteristics. Overseas cloud providers will dynamically adjust procurement demand according to large model R&D and computing power deployment progress. This means the optical module industry high growth trend is not perpetual.

The current sector overall valuation is at a high level. If Dongshan Precision cannot continuously launch high-end iterative products and optimize product structure, the overall gross margin will face downward pressure.

At the same time, Dongshan Precision's traditional main business growth is weak. Consumer electronics PCB business recovery is weak. New energy business has not yet formed scale increments. It is difficult to hedge cyclical fluctuations in the computing power track.

Therefore, Dongshan Precision relies on optical module track dividends to achieve performance high-speed growth. But structural issues such as high debt, large goodwill, customer concentration, and insufficient overseas operation management need to be optimized urgently.

Against the backdrop of industry accelerating differentiation, only by continuously iterating high-end products and filling in operational shortcomings can one cross industry cycles. Relying solely on sector dividends is difficult to maintain a long-term steady growth trend.

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