What happened
On September 4, Meig Smart announced that its board had approved an external investment to establish Meige Guangxin (Shanghai) Technology Co., Ltd. together with Zhaoge Venture Capital and Suzhou Xingyuan Optoelectronics. The venture has a registered capital of 100 million yuan, with Meig Smart subscribing 70 million yuan for a 70% stake, Zhaoge 20%, and Xingyuan 10%; the new entity will become a controlled subsidiary of Meig Smart.
The joint venture will focus on two main areas: developing and packaging optical devices, engines, modules, and subsystems based on Xingyuan's high-end indium phosphide laser chips, and designing and manufacturing data center optical communication modules by integrating DSP and other chip resources. Xingyuan's existing business includes indium phosphide laser chips, devices, modules, and subsystems for AI data center optical communications, FMCW LiDAR, and fiber sensing.
Meig Smart had earlier agreed through a wholly-owned unit to make a strategic investment in Xingyuan for an 11.64% stake, and the equity transfer and business registration are still being processed. Because Meig Smart's controlling shareholder Wang Ping holds 45% of Zhaoge and serves as its executive partner, the new investment is classified as a related-party transaction; related directors abstained from the vote, and the matter does not require a shareholder meeting.
Why it matters
The move signals Meig Smart's attempt to extend its business from wireless communications into optical communications, leveraging its existing strengths in communication modules, SIP packaging, and supply-chain management. This comes as AI data centers see continued growth in demand for computing power and optical interconnectivity, especially as the industry shifts from model training to inference applications.
By teaming up with an optical chip specialist, Meig Smart aims to build a full-chain solution covering optical devices, engines, and modules. If successful, this could create a new growth engine for the company beyond its traditional high-compute and smart module offerings.
Key facts
Meig Smart will subscribe 70 million yuan for 70% of the proposed joint venture, which has a total registered capital of 100 million yuan.
Suzhou Xingyuan Optoelectronics develops high-end indium phosphide laser chips for applications such as AI data center optical communications.
Meig Smart's controlling shareholder Wang Ping holds 45% of Zhaoge Venture Capital, making the joint venture a related-party transaction.
Meig Smart's first-half 2026 revenue was 2.025 billion yuan, up 7.32% year on year.
What to watch next
Whether Meig Smart completes its previously planned strategic investment to acquire an 11.64% stake in Xingyuan Optoelectronics, as the equity transfer and business registration are still in progress.
How quickly the joint venture can turn its optical chip collaboration into commercial optical modules and engines for AI data centers, given the growing demand for optical interconnect solutions.
The governance and shareholder implications of the related-party structure, especially since the deal involves executives and core technical personnel through Zhaoge.