On September 26, Eastcom (600776.SH) announced that its board of directors had approved a resolution authorizing management to sell a portion of its Evercore Broadcom shares through a centralized auction on the Shenzhen Stock Exchange within 12 months.
Eastcom currently holds 5.742 million shares of Evercore Broadcom and plans to sell no more than 2.911 million shares, with an estimated transaction value of approximately 318 million yuan.
Evercore Broadcom (300548.SZ) is a high-tech company specializing in optical communications. Its business covers core areas such as telecommunications, data centers, consumer, and industrial interconnect. It boasts a complete supply chain from chip design and packaging to optical module and cable manufacturing. Leveraging its AOC (active optical cable) and AEC (active electrical cable) technologies, it has become a core supplier of high-speed interconnects for data centers.
Eastcom stated that this transaction was intended to “optimize the company’s asset structure and improve its return on assets,” and plans to use the proceeds for the research and development of 5G private network equipment.
This strategic adjustment by Eastcom not only aligns with the global 5G construction trend but also capitalizes on a policy opportunity. The recently released “Guiding Opinions on Promoting the Construction of Industrial 5G Standalone Private Networks” and the “Industrial Internet Innovation and Development Action Plan (2025–2027)” both emphasize the “orderly development of industrial 5G standalone private networks” to build a new industrial network system.
Eastern Communications, a state-controlled listed company with a national-level enterprise technology center, has specialized in the production of wireless and carrier communications equipment since 1958, becoming an early domestic communications equipment supplier. After decades of expansion, its core business has expanded into information and communications, intelligent manufacturing, and financial technology.
In its core information and communications sector, Eastern Communications provides private and public network communications, as well as ICT services, building a comprehensive product portfolio that integrates broadband and narrowband, and public and private networks. Its private network communications products cover multiple frequency bands, including 350MHz, 370MHz, 400MHz, and 800MHz, providing digital and intelligent solutions for industries such as government affairs, public security, emergency response, and rail transit. For its public network communications business, based on its capability network element products, the company has developed related products such as communication information security systems and 5G new call services, winning bids for China Mobile’s 5G new call VONR+ capability project.
The company is also developing emerging industries such as computing centers and satellite internet.
In the field of intelligent manufacturing, Eastcom provides high-end hardware manufacturing services for the communications, medical, and automotive electronics sectors. It has 13 surface-mount manufacturing (SMT) production lines, serving enterprise clients such as H3C and China Mobile.
Notably, its collaboration with H3C has promoted the localization of automotive-grade chips, achieving breakthroughs in the smart cockpit chip sector.
In the financial technology sector, Eastcom has achieved rapid breakthroughs. Leveraging its strengths in the trusted innovation (DIIC) alternatives for smart terminals, Eastcom has successfully won bids for trusted innovation projects from multiple financial institutions, including ICBC and Zhongyuan Bank, securing a favorable position in the wave of financial digitalization.
