AAOI · Applied Optoelectronics, Inc.

Applied Optoelectronics, Inc. disclosed that its wholly owned subsidiary, Global Technology, Inc., entered into a new Financing Credit Line Agreement with Shanghai Pudong Development Bank Co., Ltd. on June 11, 2026. The agreement provides a credit line of RMB 500,000,000 (approximately $69 million), doubling the previous facility of RMB 250,000,000. The increased capacity is intended to support Global Technology's working capital requirements and general business operations in China. The credit line is structured with specific sub-limits: up to RMB 150 million for working capital loans (shared with fixed asset loans), up to RMB 300 million for fixed asset loans (non-revolving), and up to RMB 200 million for bank acceptance bills (revolving). The credit period extends from May 21, 2026 to May 21, 2027, during which Global Technology may draw funds on an as-needed basis. The obligations are secured by real property that was already mortgaged under the original facility. The agreement includes customary covenants and allows the bank to revoke or adjust the line at any time without prior notice under certain conditions. This financing provides Applied Optoelectronics with significant additional liquidity in China, supporting its operational and expansion activities. Investors should note the increased financial flexibility but also the bank's unilateral revocation rights.