Defu Technology (SZ301511), a star stock linked to AI copper foil concept, closed at ¥105.3 per share with a total market capitalization of 66.4 billion yuan. On the evening of May 27, the company issued an announcement that it plans to sign an Investment Project Contract with the Jiujiang Economic and Technological Development Zone Administration Committee.
The company will invest approximately 3.1 billion yuan in total to build a project with an annual output of 50,000 tons of high-end AI electronic circuit copper foil. The project will be undertaken by its wholly-owned subsidiary, Jiujiang Hupo New Materials Co., Ltd. The total investment includes around 2.1 billion yuan in fixed assets and 1 billion yuan of working capital for subsequent operation.
The investment proposal was approved at the 24th meeting of the 3rd Board of Directors held on May 27. Defu Technology reminded investors that the huge capital expenditure will bring certain financial pressure to the company. After the project is completed, the production capacity of high-end AI electronic circuit copper foil will be expanded, which may lead to risks such as oversupply of new capacity, technological iteration and operational management challenges.
Project Location & Construction Plan
The project is situated within the premises of Jiujiang Hupo New Materials Co., Ltd., the company’s wholly-owned subsidiary.
This cooperation does not constitute a related transaction or major asset restructuring. In accordance with relevant regulations, the investment plan still needs to be reviewed and approved at the extraordinary general meeting. The company will convene its First Extraordinary General Meeting of 2026 on June 12 to vote on the proposal.
The project is located at No.188 Gangxing Road, Jiujiang Economic and Technological Development Zone, Jiangxi Province, covering a land area of about 100 mu. It will be constructed in two phases, with each phase designed for an annual output of 25,000 tons of copper foil. The exact location and land area shall be subject to the officially submitted architectural design plans.
Of the total 3.1 billion yuan investment, fixed assets investment (including buildings, structures, supporting facilities, equipment, land cost and initial working capital) totals about 2.1 billion yuan, and another 1 billion yuan will be reserved for operational working capital in the later stage. The final investment amount will be determined by actual expenditure.
The company stated that the capacity expansion aims to meet market and customer demands, accelerate industrial chain upgrading, and further strengthen its market competitiveness in the high-end copper foil sector.
Capital Arrangement & Financial Status
Apart from shareholders' approval, the project also needs to complete government formalities including project filing and environmental impact assessment. Funds will be raised through self-owned capital, bank loans and other financing channels. The large-scale investment is expected to pose financial pressure on the company.
As of the end of the first quarter of 2026, Defu Technology held monetary funds of about 5.373 billion yuan.
Stock Performance & Operating Results
Driven by robust performance and the AI copper foil theme, the stock has been highly favored by market capital. From the intraday low on February 6 to the closing price on May 27, the share price surged by over 270% within 69 trading days (before dividend adjustment), jumping nearly 300% in less than four months.
According to the 2026 Q1 financial report:
- Operating revenue: 4.338 billion yuan, a year-on-year increase of 73.47%
- Net profit attributable to parent company: 147 million yuan, a year-on-year increase of 708.90%
- Non-recurring profit and loss adjusted net profit: 149 million yuan, a year-on-year increase of 2424.40%
By the end of 2025, the company’s annual production capacity reached 175,000 tons, ranking among the top domestic copper foil manufacturers. In 2025, its electrolytic copper foil output hit 139,600 tons and sales volume reached 140,900 tons, up 50.33% and 51.99% year-on-year respectively.
The company’s main products are divided into lithium battery copper foil and electronic circuit copper foil. In 2025, the revenue of lithium battery copper foil stood at 10.026 billion yuan, a year-on-year increase of 77.61%, accounting for 80.61% of the total operating revenue and becoming its core growth driver.