Summary of Long光华芯's Q3 2025 Earnings Call Company Overview - **Company**: 长光华芯 (Changguang Huaxin) - **Industry**: Optical Communication and Laser Technology Key Financial Performance - **Q3 2025 Revenue**: 339 million CNY, a year-on-year increase of 67.42% [2][4] - **Net Profit**: 20.94 million CNY, continuing the growth trend [2][4] - **Product Capacity**: EML and LRP products have a basic capacity of 5 million units, with potential annual production capacity reaching 20 million units if all MOCVD equipment is utilized [4][10] Business Segments - **Industrial Business**: Accounts for approximately 65% of total revenue, showing strong growth [2][8] - **Special Industry**: Represents about 20% of revenue, with significant growth observed [2][17] - **Optical Communication**: Comprises around 10% of revenue, facing some geopolitical challenges but still maintaining growth [2][8] Product Development and Innovation - **Laser Radar Technology**: Continuous updates and entry into new markets such as robotic vision [2][6] - **New Product Launch**: Introduction of the 200 mW BLB blue laser, attracting customer interest for sample testing [2][6] Market Dynamics - **Geopolitical Impact**: U.S. market demand for 800G and above modules is significant, influencing company strategy and operations [2][7] - **Global Chip Shortage**: The optical chip market is expected to remain in short supply in 2026, particularly for 800G modules in the U.S. [2][8] Strategic Focus - **Long-term Strategy**: Emphasis on high-end markets, aiming to compete with U.S. companies like Coherent [4][21] - **Investment Opportunities**: The company is positioned for growth in the optical communication sector, with potential breakthroughs in the U.S. market [2][23] Future Outlook - **Growth Potential**: The company anticipates continued growth in the industrial and special application sectors, with a focus on high-margin products [17][23] - **Market Readiness**: Preparations for increased production and testing capabilities to meet anticipated demand in 2026 [9][12] Conclusion - **Overall Assessment**: 长光华芯 is on a solid growth trajectory with a clear focus on high-end optical communication products and laser technologies, supported by strong financial performance and strategic market positioning [21][23]

Group 1 - Long光华芯 (688048.SH) reported its Q3 2025 results, with 13 institutional investors holding a total of 98.53 million shares, representing 55.89% of the total share capital [1] - The top ten institutional investors collectively hold 54.35% of the shares, a decrease of 4.37 percentage points compared to the previous quarter [1] - Notable institutional investors include Suzhou Huafeng Investment Center, Suzhou Yinglei Venture Capital, and Changchun Changguang Precision Instrument Group [1] Group 2 - In the public fund sector, one fund, Southern CSI 1000 ETF, increased its holdings, while two new public funds were disclosed, including Xingquan Trend Mixed Fund [2] - A total of 150 public funds were not disclosed in the current period, including notable funds like ICBC Yuanxing Mixed Fund and Huaxia CSI 1000 ETF [2] - The National Social Security Fund 114 Combination reduced its holdings slightly in the current period [2]

Core Viewpoint - The company, Suzhou Changguang Huaxin Optoelectronics Co., Ltd., has reported a significant asset impairment provision for the third quarter of 2025, reflecting a cautious approach to its financial reporting and asset management [8][9]. Financial Data Summary - The financial statements for the third quarter of 2025 have not been audited, indicating that the figures presented are preliminary and subject to change [3][7]. - The company has reported a total credit impairment loss of 7.34 million yuan for the first three quarters of 2025 [8]. - The total asset impairment loss for the same period amounts to 32.64 million yuan, which has been accounted for in the financial statements [8]. Impact of Impairment Provision - The provision for asset impairment has resulted in a reduction of the company's consolidated profit before tax by 39.98 million yuan for the third quarter of 2025 [9]. - This impairment provision is in accordance with the relevant accounting standards and company policies, ensuring that the financial results reflect the true operational performance [10]. Compliance and Assurance - The board of directors and senior management have guaranteed the authenticity, accuracy, and completeness of the quarterly report, taking legal responsibility for any misrepresentation [2][8]. - The company has confirmed that there are no significant omissions or misleading statements in the report [1][2].

Investment Rating - The investment rating for the company is "Accumulate" [5] Core Views - The company reported a revenue of 339 million yuan for the first three quarters of 2025, representing a year-on-year increase of 67.42%, and achieved a net profit of 21 million yuan, marking a turnaround from losses [1] - The gross margin improved significantly, with a gross margin of 36.03% for the first three quarters of 2025, up 8.63 percentage points year-on-year, and a gross margin of 40.75% in Q3 2025, up 11.76 percentage points year-on-year [3] - The company is a leader in the domestic optical chip market, focusing on high-power semiconductor laser chips and has made significant technological advancements [4] Summary by Sections Financial Performance - For Q3 2025, the company achieved a revenue of 125 million yuan, a year-on-year increase of 66.30%, and a net profit of 12 million yuan, indicating a successful turnaround [2] - The company’s operating income for 2025-2027 is projected to be 440 million, 567 million, and 707 million yuan respectively, with year-on-year growth rates of 61.6%, 28.8%, and 24.6% [9] Gross Margin and Cost Control - The gross margin for Q1-Q3 2025 was 36.03%, with a notable increase in Q3 to 40.75%, reflecting improved cost control measures [3] - The company has effectively reduced its expense ratio, with a total expense ratio of 31.92% for Q1-Q3 2025, down 29.82 percentage points year-on-year [3] Technological Advancements - The company has achieved breakthroughs in high-power semiconductor laser chips, including a new record for continuous power output exceeding 132W for a single chip [4] - The company has also made significant progress in VCSEL technology, achieving a chip efficiency of 74% and setting a new world record for single-mode VCSEL power efficiency [5][8] Market Position and Product Development - The company has established a comprehensive product matrix in optical communication, with mass production of 100G EML chips and ongoing sampling of 200G EML chips [8] - The company is expanding its applications in various fields, including laser weeding and acne treatment, with new products being developed and samples sent out [4]

Core Insights - Long光华芯 (688048.SH) reported a revenue of 339 million yuan for the first three quarters of 2025, representing a year-on-year increase of 67.42% [1] - The company achieved a net profit attributable to shareholders of 20.94 million yuan, marking a turnaround from a loss to profitability [1] - The company's non-recurring net profit showed a loss of 24.15 million yuan, indicating challenges in core operational performance [1] - Basic earnings per share were reported at 0.1188 yuan [1]

Core Viewpoint - The company Long光华芯 announced a comprehensive review of its assets in accordance with accounting standards, resulting in significant impairment losses for the third quarter of 2025 [1] Financial Performance - The company recognized a credit impairment loss of 7.3389 million yuan for the first three quarters [1] - Total asset impairment losses for the first three quarters amounted to 32.643 million yuan [1] Asset Management - The company conducted a thorough examination of its consolidated assets to reflect its financial status accurately [1] - Inventory was measured at the lower of cost and net realizable value, leading to the recognition of inventory impairment losses [1]

Core Insights - The company reported a significant increase in revenue and profit for the third quarter of 2025, indicating strong market performance and effective business strategies [1] Financial Performance - Third quarter revenue reached 125 million yuan, representing a year-on-year growth of 66.3% [1] - Net profit for the third quarter was 11.968 million yuan [1] - For the first three quarters, total revenue amounted to 339 million yuan, with a year-on-year increase of 67.42% [1] - The net profit for the first three quarters was 20.9426 million yuan, marking a turnaround from previous losses [1] - Basic earnings per share were reported at 0.1188 yuan [1] Business Development - The company has successfully expanded its market presence, particularly in high-power product sales [1] - Previous investments in optical communication and other sectors have gained recognition from end customers, leading to bulk shipments and opening new growth avenues [1]

本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈 述或者重大遗漏，并对其内容的真实性、准确性和完整性依法承担法律责任。 一. 计提资产减值准备情况概述 依据《企业会计准则》及公司会计政策的相关规定，为真实、公允地反映公 司 2025 年三季度报告的财务状况及经营情况，公司对合并范围内的相关资产进 行了全面清查，基于谨慎性原则，对存在减值迹象的资产计提了减值准备。具体 情况如下表所示： 单位：人民币 万元 | 项目 | 计提金额 | 备注 | | --- | --- | --- | | 信用减值损失 | 733.89 | 含应收账款、应收票据、其他应收款等的减值 | | 资产减值损失 | 3,264.30 | 存货跌价准备 | | 合计 | 3,998.19 | | 二. 计提资产减值准备事项的具体说明 1.信用减值损失 证券代码：688048 证券简称：长光华芯 公告编号：2025-050 苏州长光华芯光电技术股份有限公司 关于 2025 年三季度计提资产减值准备的公告 变现净值的差额计提存货跌价准备。经测试，公司前三季度计提资产减值损失共 计 3,264.30 万元。 三. 本次计提资产减值 ...

Financial Performance - The company's operating revenue for the third quarter reached ¥125,325,758.13, representing a year-on-year increase of 66.30%[4] - The total profit for the period was ¥13,722,322.32, while the net profit attributable to shareholders was ¥11,968,033.69[4] - The total profit for the year-to-date period reached ¥17,366,845.33, with a net profit attributable to shareholders of ¥20,942,553.29[4] - Total operating revenue for the first three quarters of 2025 reached ¥339,390,192.06, a significant increase from ¥202,721,135.17 in the same period of 2024, representing a growth of approximately 67.4%[21] - Operating profit for the first three quarters of 2025 was ¥17,630,174.94, compared to a loss of ¥90,243,886.04 in the same period of 2024, indicating a turnaround in profitability[21] - Net profit for the first three quarters of 2025 was ¥22,018,108.36, contrasting with a net loss of ¥62,235,161.07 in the same period of 2024, marking a substantial improvement[22] - The net profit for the first three quarters of 2025 was ¥27,378,864.97, recovering from a net loss of ¥59,964,843.17 in the first three quarters of 2024[31] Research and Development - Research and development expenses amounted to ¥28,969,135.86, accounting for 23.12% of operating revenue, a decrease of 19.43% compared to the previous year[5] - Research and development expenses for the first three quarters of 2025 totaled ¥86,390,463.80, slightly down from ¥94,262,309.82 in the same period of 2024, reflecting a focus on cost management[21] - Research and development expenses for the first three quarters of 2025 were ¥81,377,480.47, slightly lower than ¥87,194,255.76 in the same period of 2024[31] Assets and Liabilities - Total assets increased to ¥3,333,180,308.13, reflecting a growth of 0.94% from the end of the previous year[5] - Total current assets as of September 30, 2025, amount to ¥1,237,123,969.65, a decrease from ¥1,633,139,116.05 as of December 31, 2024[15] - Total liabilities as of September 30, 2025, are ¥270,589,586.86, compared to ¥260,216,820.06 at the end of 2024[16] - The company’s total assets amount to ¥3,333,180,308.13, slightly up from ¥3,302,078,019.35[16] - The total liabilities increased to ¥320,358,487.22 in 2025 from ¥309,726,459.75 in 2024, indicating a rise of approximately 8.3%[21] - The total equity attributable to shareholders of the parent company rose to ¥3,005,334,709.04 in 2025, up from ¥2,985,940,002.80 in 2024, showing a growth of about 0.7%[21] - The total assets as of September 30, 2025, amounted to ¥3,250,770,073.13, compared to ¥3,196,548,901.20 at the end of 2024, reflecting a growth of 1.7%[28] - The total liabilities increased to ¥234,714,813.43 as of September 30, 2025, compared to ¥208,824,659.42 at the end of 2024, representing an increase of 12.4%[28] Cash Flow - The company reported a net cash outflow from operating activities of ¥36,184,605.47 for the first three quarters of 2025, an improvement from a net outflow of ¥47,385,999.54 in the same period of 2024[24] - The net cash flow from operating activities for the first three quarters of 2025 was -169,157,966.17 RMB, compared to -38,443,019.02 RMB in the same period of 2024, indicating a significant decline[33] - The company reported a net cash outflow from investing activities of ¥470,927,346.19 for the period, compared to a net outflow of ¥453,149,000.19 in the previous year[25] - The cash inflow from financing activities was ¥42,129,537.78, a decrease from ¥92,594,887.24 in the same period of 2024[25] Shareholder Information - Total number of common shareholders at the end of the reporting period is 18,200[12] - The largest shareholder, Suzhou Huafeng Investment Center, holds 32,409,000 shares, representing 18.38% of total shares[12] Market and Product Development - The company reported a significant increase in high-power product revenue, contributing to the overall growth in operating income[9] - The company is focused on market expansion and has achieved significant customer recognition for its optical communication products, leading to increased sales[9] - The company has successfully opened up other business growth curves through prior investments in optical communication and related sectors[10] Other Financial Metrics - The basic earnings per share for the quarter was ¥0.0679, with a diluted earnings per share also at ¥0.0679[5] - The company achieved a basic earnings per share of ¥0.1188 in the first three quarters of 2025, recovering from a loss per share of ¥0.3604 in the same period of 2024[22] - The company incurred cash outflows of 457,987,126.83 RMB from operating activities in 2025, compared to 334,380,474.74 RMB in 2024, reflecting increased operational costs[33] - Cash received from sales of goods and services was 246,348,280.10 RMB in the first three quarters of 2025, a slight decrease from 249,647,414.78 RMB in 2024[33] Accounting Standards - The company has not adopted new accounting standards for the year 2025, as indicated in the announcement[35]

Core Insights - The company reported a third-quarter revenue of 125 million yuan, representing a year-on-year increase of 66.30% [1] - The net profit for the third quarter was 11.968 million yuan [1] - For the first three quarters, the total revenue reached 339 million yuan, showing a year-on-year growth of 67.42% [1] - The net profit for the first three quarters amounted to 20.9426 million yuan [1] Financial Performance - Third-quarter revenue: 125 million yuan, up 66.30% year-on-year [1] - Third-quarter net profit: 11.968 million yuan [1] - Year-to-date revenue (first three quarters): 339 million yuan, up 67.42% year-on-year [1] - Year-to-date net profit (first three quarters): 20.9426 million yuan [1]