On the evening of October 8, Wavelength Opto-Electronic disclosed that the company had recently received an "Indictment" from the Third Branch of the Shanghai People's Procuratorate.

Following the conclusion of an investigation by the Anti-Smuggling Bureau of Shanghai Customs, the case was referred to the Third Branch of the Shanghai People's Procuratorate for prosecution. The indictment alleges that the defendant entity, Nanjing Wavelength Opto-Electronic Technology Co., Ltd., along with defendants Huang Shengdi, Wu Hongxia, Zhu Jingting, and Qi Wenqing, are suspected of smuggling goods prohibited from import and export by the state. The total value of the state-prohibited goods (optical lenses) exported by the defendant entity and the individuals involved reached 201.085 million yuan.

After conducting a thorough legal review, the Third Branch of the Shanghai People's Procuratorate determined that from August 2023 to April 2025, the defendant entity and the defendants failed to obtain the necessary dual-use item export licenses as required by law. Instead, they exported state-prohibited goods (optical lenses) valued at over 20 million yuan. Their actions constitute a violation of the third and fourth paragraphs of Article 151 of the Criminal Law of the People's Republic of China, making them criminally liable for smuggling goods prohibited from import and export by the state.

The "Indictment" further reveals that after being taken into custody, the four defendants confessed truthfully to their own criminal acts as well as those of the defendant entity. According to the provisions of the first paragraph of Article 67 of the Criminal Law, the defendant entity and the defendants may be eligible for lighter or mitigated punishment. The Third Branch of the Shanghai People's Procuratorate has subsequently initiated public prosecution proceedings with the Shanghai Third Intermediate People's Court.

It is noteworthy that the matter at the heart of this public prosecution aligns with an inspection case previously disclosed by the company. In July 2025, Wavelength Opto-Electronic received an "Inspection Conclusion" from Shanghai Wusong Customs, indicating that due to suspected export of state-regulated germanium-containing lenses through false declaration of the goods' material, the case had been transferred to the anti-smuggling department for further handling.

In June 2026, Huang Shengdi, the chairman of the company, was released on bail pending trial by the Anti-Smuggling Bureau of Shanghai Customs. At that time, the company stated that the business involved in the case represented a relatively small proportion of its annual operating income and that it had ceased the relevant export operations. This context closely coincides with the timeframe when China officially implemented export controls on gallium and germanium-related items, starting from August 2023.

Wavelength Opto-Electronic stated in its announcement that this litigation is not anticipated to significantly impact the company's sustainable operational capabilities. The company boasts a robust corporate governance structure and internal organizational framework. Currently, its production and operations are proceeding normally, and all work is being carried out in an orderly fashion. As the litigation has yet to be heard, the outcome of the judgment remains uncertain, as does the potential impact on the company's profits. The final impact will be determined by the court's judgment.