Yunzhong Technology issued an unusual trading announcement after its share price rose sharply in recent days.
According to Jin10, the company said its stock’s gains exceeded those of most peers and were significantly higher than increases in benchmarks including the Shanghai Composite Index and the STAR 50 Index, raising the risk of overheated sentiment and irrational speculation.
The company said its MLCC products are mainly used in consumer electronics such as smartphones, PCs, and wearable smart devices, and have not yet been applied in automotive-grade safety systems or AI computing servers.
Yunzhong Technology added that its MLCC business requires substantial upfront investment and a long investment cycle, and it remains in a loss-making stage.
The company said that if industry competition intensifies, if technology trends shift in unforeseeable ways, or if downstream demand changes materially, project returns may fall short of expectations.
It also said the ramp-up and release of MLCC project capacity are affected by factors including equipment commissioning, process optimization, raw material supply, and market demand, creating uncertainty throughout the process and risks that capacity ramp-up could be slow or that capacity release could miss expectations.
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