(Yicai) Aug. 24 -- Dongshan Precision Manufacturing said it plans to invest an additional USD500 million in its subsidiary's optical chips and optical modules expansion projects in the Chinese cities of Changzhou and Yancheng, and Thailand, based on the electronics manufacturer's strategic planning, project implementation needs, and the development trend of the artificial intelligence computing market.

The total investment for the projects of Source Photonics Holdings Cayman and its subsidiaries was increased to USD1.7 billion, Suzhou-based Dongshan Precision announced on Aug. 22. The units receiving the capital increase include Multi-Fineline Electronic Thailand and Yancheng Dongshan Precision Manufacturing, it noted.

On June 16, Dongshan Precision's board of directors approved a USD1.2 billion external investment proposal, agreeing that Source Photonics and its subsidiaries will implement optical chip and optical module expansion projects in Changzhou and other locations, with the funds coming from the parent company's own resources. The move aims to enhance the units' overall production capacity to meet industry and downstream customer demand.

In addition, Dongshan Precision announced that its Hong Kong subsidiary Dongshan Holding plans to invest an additional USD500 million in its other local unit Multek Group through a cash injection to support operational development, expand product categories, increase production capacity, and strengthen capital.

Multek will remain a subsidiary of Dongshan Precision after the capital injection.

Dongshan Precision's net profit surged 290 percent to CNY2.9 billion (USD431.5 million) in the first half of this year from a year earlier, while its revenue jumped 64 percent to CNY27.8 billion (USD4.1 billion), according to its financial report released on the same day.

Shares of Dongshan Precision [SHE: 002384] closed down 3.7 percent at CNY193.60 (USD28.80) each today. The broader Shenzhen market fell 2.1 percent.

Editor: Martin Kadiev