Recently, news about the theft of optical modules from Dongshan Precision’s overseas warehouse has rapidly circulated in the secondary market, even making it to the top five on Baidu’s trending searches.

On July 22, Cailian Press reported that a journalist, posing as an investor, contacted the company’s securities department, which confirmed the theft. According to Dongshan Precision’s securities department, the value involved is significantly lower than what has been rumored.

Dongshan Precision stated that it promptly reported the incident to the police and informed the insurer responsible for the cargo transportation insurance. The company confirmed that the relevant products were fully insured under cargo transportation insurance. Based on the comprehensive insurance terms and expert advice, the company expects full compensation for this incident. It estimates that the loss in value of this batch of goods will not materially impact its profits and does not constitute 10% of the company’s audited net profit from the previous year.

According to available information, optical modules are essential components that convert optical and electrical signals in AI computing clusters and are currently some of the most in-demand hardware. Despite their small size, optical modules have a high unit price. An 800G module, for instance, can fetch over a thousand dollars in overseas retail markets. Given the high price per unit multiplied by quantity, the reported loss figures can easily be inflated.

Data indicates that Dongshan Precision entered this business after acquiring the North American optical module company Solarsense in 2025, directly supplying cloud providers such as Meta and Google. With overseas warehouses spread across various locations, security challenges are inherently greater compared to domestic warehouses.

According to Dongshan Precision’s semi-annual performance forecast for 2026, the company anticipates a net profit attributable to shareholders of 2.9 billion to 3 billion yuan for the first half of the year, representing a year-on-year increase of 282.58% to 295.78%.

Optical modules have emerged as a new profit driver for Dongshan Precision, but rapid expansion also brings its own set of challenges. According to Dongshan Precision’s first-quarter report for 2026, as of the end of March, the asset-liability ratio stood at 63.69%, and the goodwill balance was 4.769 billion yuan, of which approximately 2.8 billion yuan was attributed to the acquisition of Solarsense.

As overseas production capacity continues to shift toward North America, the management scope for warehousing, logistics, and local labor expands. If sporadic losses increase proportionally with shipment volumes, profits will inevitably be eroded.

The theft at the overseas warehouse also highlights the risks involved in cross-border supply chain management. The optical module industry is experiencing a high-growth phase. LightCounting estimated in its “2026 Optical Module Market Report” that the global market size would reach $28.5 billion that year, marking a 60% year-on-year increase, with Chinese manufacturers accounting for about 70% of the market share.

800G and 1.6T are speed specifications for optical modules. These high-speed modules, though small in size, have high circulation value. The stronger the demand, the greater the pressure on overseas warehouses to prevent theft.

The incident acted as a catalyst for the weakening stock price on July 22. Dongshan Precision closed at 217.50 yuan that day, down 5.84% for the day, with a turnover of 29.411 billion yuan. Its stock price had just reached a historical high of 280.08 yuan on July 15 but has since retracted by over 30% from that peak.

The fact that a theft report could go viral has struck a sensitive chord among investors who bought in at high prices.