Group 1: Market and Product Overview - The main products of Guangxun Technology are optical modules used in transmission, data, and access fields, with a stable market presence in transmission and access, while the data market is rapidly growing, especially overseas in North America [2] - The company has strong technical accumulation in transmission and access markets, and is confident in catching up in the data market due to similarities in chip technology [2][3] Group 2: Acquisitions and Operations - The acquisition of Danish IPX and French Almae companies is aimed at enhancing product offerings, with Almae focusing on high-end active chips above 10G, which are crucial for supply security and represent the company's strength [3] - The 25G EML and DFB chips are expected to see a surge in demand due to 5G construction, with plans for small batch shipments by Q2 of the following year [3] Group 3: Innovation Center and R&D - The Wuhan Optics Valley Information Optoelectronics Innovation Center aims to address the industrialization of key common technologies, bridging the gap from R&D to commercialization [4] - The center operates as an independent entity combining industry, academia, and research, with state funding to mitigate risks associated with high-difficulty projects [4] Group 4: Financial Performance - The increase in gross margin in Q3 is attributed to product structure, with mid-to-low-end products outsourced to reduce costs, alongside management efficiency improvements [5]

Group 1: Performance Recovery - The recovery of Guangxun Technology's Q3 performance is attributed to several factors: first, the impact of the ZTE incident in the first half of the year led to a slowdown in domestic construction, causing many operators' bulk procurement orders to be delayed; second, traditionally, the second half of the year tends to perform better than the first half for component suppliers; third, there is an increasing demand from overseas customers, positively impacting the company's performance [2][3]. Group 2: Supply Chain Risks - The US-China trade war poses certain risks to the acquisition of core materials. Suppliers of optical chips from Japan, South Korea, and Europe present lower risks, while the main suppliers of supporting electronic chips are located in North America, which carries relatively higher risks. The company is increasing its investment in optical chip R&D to mitigate these risks [3]. Group 3: 5G Construction Insights - The 5G construction by domestic operators is driven by policy, leading to cautious investment. It is predicted that the scale of investment in 5G construction will be 1.2 to 1.4 times that of 4G, with a construction period of approximately 7 years, peaking after 2021. The company aims to capture market share in the 5G sector [3][4].

Financial Performance - The company's operating revenue for the first half of 2022 was CNY 3,542,315,645.62, representing a 12.91% increase compared to CNY 3,137,320,263.82 in the same period last year[11]. - The net profit attributable to shareholders of the listed company was CNY 311,022,536.09, up 6.28% from CNY 292,654,780.25 year-on-year[11]. - The net profit after deducting non-recurring gains and losses was CNY 296,434,505.31, reflecting a 4.27% increase from CNY 284,305,069.04 in the previous year[11]. - The total operating revenue for the first half of 2022 was CNY 3,542,315,645.62, an increase of 12.9% compared to CNY 3,137,320,263.82 in the first half of 2021[75]. - The total operating costs for the first half of 2022 were CNY 3,135,269,893.21, up from CNY 2,747,796,966.96 in the same period of 2021, reflecting a growth of 14.1%[76]. - The net profit for the first half of 2022 was CNY 288,754,702.26, an increase from CNY 268,922,201.21 in the same period of 2021, representing a growth of approximately 7.1%[79]. - The company’s total comprehensive income for the first half of 2022 was CNY 293,742,594.43, compared to CNY 274,319,334.86 in the first half of 2021, representing an increase of 7.1%[77]. Cash Flow and Liquidity - The net cash flow from operating activities decreased by 52.55% to CNY 149,604,046.24, down from CNY 315,257,962.18 in the same period last year[11]. - The company reported a net cash decrease of ¥154,516,135.88, a decline of 192.37% compared to the previous year[19]. - The cash and cash equivalents at the end of the period were CNY 2,689,286,724.19, slightly up from CNY 2,635,555,236.10 at the end of the first half of 2021[82]. - The company’s cash flow from financing activities showed a net outflow of CNY 96,797,868.05, compared to a net outflow of CNY 950,083.53 in the first half of 2021, indicating a significant change in financing activities[82]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 10,293,450,854.90, an increase of 8.60% from CNY 9,477,921,326.36 at the end of the previous year[11]. - The total liabilities as of the end of the first half of 2022 were CNY 4,546,429,561.91, compared to CNY 4,051,633,934.72 at the end of the first half of 2021, marking an increase of 12.2%[75]. - The total equity attributable to shareholders was CNY 4,688,347,978.86 at the end of the first half of 2022, up from CNY 4,435,429,752.18 in the same period of 2021, reflecting a growth of 5.7%[75]. - The company's total current assets as of June 30, 2022, amounted to CNY 8,013,194,638.90, an increase from CNY 7,280,660,502.08 at the beginning of the year[71]. Shareholder Information - The total number of shares before the recent changes was 699,408,918, with 5.20% being restricted shares and 94.80% being unrestricted shares[52]. - The largest shareholder, Fenghuo Technology Group Co., Ltd., holds 41.68% of the shares, totaling 291,478,944 shares[58]. - The total number of ordinary shareholders at the end of the reporting period was 76,602[56]. - The company unlocked 5,170,000 shares for 465 eligible participants in the 2017 restricted stock incentive plan on February 7, 2022[53]. Research and Development - The company's R&D investment rose by 24.45% to ¥348,717,589.57, reflecting a commitment to innovation[19]. - Research and development expenses increased to CNY 326,328,797.39 in the first half of 2022, up from CNY 280,209,888.68 in the same period of 2021, indicating a rise of 16.5%[76]. Environmental and Social Responsibility - The company has established five sets of acid mist treatment systems with a total air volume of 45,000 m³/h and six sets of organic waste gas treatment systems with a total air volume of 73,000 m³/h, ensuring all emission indicators meet standards[36]. - The company implemented energy-saving projects expected to save 1.67 million kWh of electricity annually and reduce carbon dioxide emissions by approximately 1,380 tons[36]. - The company has actively engaged in low-carbon operations, including the procurement of 800 MWh of green electricity, resulting in a carbon reduction of 572 tons[37]. Legal and Compliance - The company has no significant litigation or arbitration matters during the reporting period[40]. - The company has no non-operating fund occupation by controlling shareholders or related parties during the reporting period[38]. - The company has not engaged in any external guarantees during the reporting period[39]. - The company’s financial report for the first half of 2022 was not audited[70]. Accounting Policies - The company adheres to the accounting standards set by the Ministry of Finance, ensuring compliance and transparency in financial reporting[106][108]. - The company has implemented specific accounting policies tailored to its operational characteristics, reflecting its commitment to accurate financial reporting[107]. - The company has not reported any significant changes in accounting policies or estimates for the current period[162].

Financial Performance - The company's revenue for Q1 2022 was CNY 1,711,941,911.38, representing a 13.34% increase compared to CNY 1,510,465,003.83 in the same period last year[3] - Net profit attributable to shareholders was CNY 143,135,428.33, an increase of 8.71% from CNY 131,669,342.94 year-on-year[3] - Basic earnings per share for Q1 2022 was CNY 0.21, up from CNY 0.20 in Q1 2021[14] - Operating profit for Q1 2022 was CNY 149,180,131.17, slightly up from CNY 147,284,798.26 in Q1 2021[13] - The total operating costs for Q1 2022 were CNY 1,538,894,526.45, an increase of 15.66% from CNY 1,330,773,716.76 in Q1 2021[13] - The company reported a decrease in tax expenses to CNY 12,996,153.48 from CNY 24,702,270.84, which may positively impact net profit[14] Cash Flow - The net cash flow from operating activities decreased by 40.94% to CNY 184,128,486.44, down from CNY 311,783,959.09 in the previous year[3] - The total cash inflow from operating activities was CNY 1,814,827,936.42, a slight decrease of 0.2% compared to CNY 1,825,196,617.53 in the previous period[15] - The net cash outflow from operating activities was CNY 1,630,699,449.98, an increase of 7.7% from CNY 1,513,412,658.44 in the previous period[16] - The cash flow from financing activities showed a net outflow of CNY 14,388,695.83, compared to a net inflow of CNY 65,818,975.38 in the previous period[16] - The cash inflow from investment activities was CNY 801,407,489.35, while the cash outflow was CNY 877,511,777.76, resulting in a net cash outflow of CNY 159,533,910.61[16] Assets and Liabilities - The total assets at the end of the reporting period were CNY 10,021,342,329.84, a 5.73% increase from CNY 9,477,921,326.36 at the end of the previous year[3] - Total liabilities rose to CNY 4,291,556,613.70, compared to CNY 3,948,849,323.19 in the previous year, marking an increase of 8.69%[12] - The company's total equity increased to CNY 5,729,785,716.14 from CNY 5,529,072,003.17, showing a growth of 3.62%[12] - The company's equity attributable to shareholders increased by 3.76% to CNY 5,749,742,505.12 from CNY 5,541,530,866.46[3] Shareholder Information - The total number of common shareholders at the end of the reporting period was 77,303[8] - The largest shareholder, Fenghuo Technology Group Co., Ltd., holds 41.68% of shares, totaling 291,478,944 shares[8] - The company has no preferred shareholders or related party transactions among the top ten shareholders[9] Research and Development - Research and development expenses increased by 31.37% to CNY 154,488,092.93 compared to CNY 117,601,096.64 in the same period last year[5] - R&D expenses increased to CNY 154,488,092.93, up from CNY 117,601,096.64, indicating a focus on innovation and product development[13] Other Income and Expenses - The company reported a significant increase in other income, which rose by 258.34% to CNY 10,316,744.17 from CNY 2,879,061.87 year-on-year[5] - Other comprehensive income attributable to shareholders of the parent company was CNY -1,776,405.49, an improvement from CNY -3,510,296.79 in the previous year[14] Current Assets and Inventory - The total current assets amounted to approximately CNY 7.72 billion, an increase from CNY 7.28 billion at the beginning of the year[11] - Cash and cash equivalents were reported at CNY 2.85 billion, slightly down from CNY 2.85 billion at the beginning of the year[10] - Accounts receivable increased to CNY 1.77 billion from CNY 1.60 billion, reflecting a growth of approximately 10.5%[10] - Inventory rose to CNY 2.46 billion, up from CNY 2.20 billion, indicating a growth of about 11.8%[11] - Non-current assets totaled approximately CNY 2.30 billion, an increase from CNY 2.20 billion[11] - The total assets of the company reached CNY 10.02 billion, compared to CNY 9.48 billion at the beginning of the year[11] - The company reported a significant increase in accounts payable, which rose to CNY 1.63 billion from CNY 1.26 billion, a growth of approximately 29.4%[11] Audit and Compliance - The company did not undergo an audit for the quarterly report[2]

Financial Performance - The company's operating revenue for 2021 was ¥6,486,301,555.77, representing a 7.28% increase compared to ¥6,046,017,103.97 in 2020[14] - The net profit attributable to shareholders for 2021 was ¥567,266,618.25, which is a 16.39% increase from ¥487,379,314.51 in 2020[14] - Basic earnings per share for 2021 were ¥0.85, up 16.44% from ¥0.73 in 2020[14] - The net profit after deducting non-recurring gains and losses for 2021 was ¥469,929,479.83, a 3.44% increase from ¥454,291,717.87 in 2020[14] - The total comprehensive income for 2021 was ¥555,820,703.22, compared to ¥458,406,823.49 in 2020, indicating an increase of 21.25%[175] - The total comprehensive income for 2021 was CNY 483,450,548.56, compared to CNY 345,873,509.34 in 2020, representing an increase of approximately 39.7%[178] - Operating profit for 2021 was ¥620,383,673.33, up 24.69% from ¥497,400,307.62 in 2020[174] - The company reported a significant increase in revenue, achieving a total of 1.2 billion yuan, representing a year-over-year growth of 15%[76] Cash Flow and Liquidity - The net cash flow from operating activities decreased by 26.75% to ¥673,155,789.02 from ¥918,991,871.40 in 2020[14] - Cash and cash equivalents increased to ¥2,852,902,860.07, representing 30.10% of total assets, up from 28.91% at the beginning of the year, a 1.19% increase[42] - The net cash flow from operating activities was CNY 673,155,789.02, a decrease of 26.8% from CNY 918,991,871.40 in 2020[180] - Cash received from sales of goods and services was CNY 6,964,472,911.88, compared to CNY 6,587,896,966.17 in the previous year, reflecting an increase of approximately 5.7%[179] - The net cash flow from financing activities was CNY 399,077,746.58, an increase from CNY 215,923,089.33 in 2020, representing a growth of approximately 84.5%[181] Assets and Liabilities - Total assets at the end of 2021 were ¥9,477,921,326.36, a 10.79% increase from ¥8,554,641,008.78 at the end of 2020[14] - The total liabilities increased to ¥4,051,633,934.72 in 2021, up from ¥3,584,612,186.59 in 2020, representing a growth of approximately 13.06%[171] - The total current assets increased to CNY 7,280,660,502.08 in 2021 from CNY 6,903,818,186.47 in 2020, indicating a growth of approximately 5.45%[166] - The inventory balance rose to CNY 2,200,753,373.51 in 2021, compared to CNY 1,959,070,016.19 in 2020, reflecting an increase of about 12.34%[166] - The total equity attributable to shareholders reached ¥5,541,530,866.46 in 2021, up from ¥5,021,473,036.67 in 2020, which is an increase of approximately 10.35%[168] Research and Development - Research and development expenses increased by 18.94% to ¥661,114,272.63 compared to the previous year[36] - Total R&D investment amounted to ¥747,801,893.91, a 14.96% increase year-on-year, representing 11.53% of operating revenue[38] - The company plans to enhance its R&D capabilities in high-speed optical communication chips and other advanced components as part of its strategic initiatives[22] - The company is developing several new products, including high-speed laser chips and coherent optical devices, aimed at enhancing product competitiveness and creating new market opportunities[37] Market Position and Strategy - The company's annual rolling market share as of Q3 2021 was 7.8%, an increase from 6.8% in the previous year[22] - The telecom industry is experiencing accelerated growth due to 5G and gigabit optical network construction, despite some temporary adjustments in construction pace[22] - The company is positioned to benefit from ongoing investments in new infrastructure and 5G construction, which are expected to drive growth in the optical device industry[23] - The company plans to focus on expanding its market presence in high-speed optical devices and modules, targeting the 400G and above market applications[57] Governance and Management - The company has established a complete and independent governance structure, ensuring compliance with relevant laws and regulations[60] - The board of directors consists of 11 members, including 4 independent directors, meeting legal requirements for composition[61] - The company has engaged with multiple institutional investors through conference calls to discuss its business and industry developments[59] - The management team has emphasized a focus on sustainability, aiming to reduce operational carbon emissions by 25% by 2025[76] Challenges and Risks - The company faced challenges in 2021, including supply chain shortages and increased transportation costs, impacting its ability to meet customer demand[22] - The company recognizes risks including macroeconomic uncertainties, supply chain challenges, and compliance issues, and is committed to maintaining a robust risk management framework[57] Shareholder Information - The company plans to distribute a cash dividend of ¥1.70 per 10 shares, totaling approximately ¥69,940,891.80 based on 699,408,918 shares[2] - The total cash dividend distributed by the company amounted to ¥118,899,516.06, representing 100% of the distributable profit of ¥2,404,053,746.08[95] - The company reported a total shareholding of 3,279,100 shares at the beginning of the period, with a reduction of 102,788 shares, resulting in an ending total of 3,185,762 shares[66] Environmental and Social Responsibility - The company promotes low-carbon development by integrating green management and manufacturing into daily operations, advocating for paperless offices and reduced business travel[109] - In 2021, the company participated in rural revitalization efforts, contributing to agricultural modernization and poverty alleviation[111]

Financial Performance - The company's revenue for Q3 2021 was ¥1,592,437,844.32, a decrease of 5.97% compared to the same period last year[3] - The net profit attributable to shareholders for Q3 2021 was ¥163,714,896.21, down 8.81% year-on-year[3] - The net profit excluding non-recurring gains and losses for the same period was ¥129,480,200.45, a decline of 19.12% compared to the previous year[3] - Total operating revenue for the third quarter reached ¥4,729,758,108.14, an increase of 11.2% compared to ¥4,251,946,970.34 in the same period last year[15] - Net profit for the period was ¥434,149,045.53, compared to ¥366,330,004.23 in the previous year, representing a growth of 18.5%[17] - The company's net profit attributable to shareholders was ¥456,369,676.46, an increase from ¥388,817,537.70, marking a rise of 17.4%[17] Assets and Liabilities - The total assets as of the end of Q3 2021 reached ¥9,553,519,136.78, an increase of 11.68% from the end of the previous year[3] - The total liabilities of the company were reported at CNY 4.88 billion, compared to CNY 4.25 billion at the end of 2020, marking an increase of about 14.8%[13] - Total liabilities rose to ¥4,107,151,867.04, up from ¥3,543,412,819.65, reflecting an increase of 15.9%[16] - The total assets of the company amounted to ¥9,553,519,136.78, up from ¥8,554,641,008.78, indicating a growth of 11.7%[16] Equity and Earnings - The company's total equity attributable to shareholders was ¥5,478,069,371.93, reflecting a growth of 9.09% from the previous year[3] - The total equity attributable to shareholders reached ¥5,478,069,371.93, compared to ¥5,021,473,036.67, showing a growth of 9.1%[16] - Basic earnings per share for Q3 2021 was ¥0.24, down 11.11% year-on-year[3] - Basic earnings per share increased to ¥0.68 from ¥0.59, representing a growth of 15.3%[17] Cash Flow - The company reported a net cash flow from operating activities of ¥471,563,547.40, which is an increase of 10.10% year-to-date[3] - The cash inflow from operating activities for the current period was CNY 5,414,880,931.85, an increase of 13.2% compared to CNY 4,782,248,473.99 in the previous period[18] - The net cash flow from operating activities was CNY 471,563,547.40, up from CNY 428,299,445.63 in the same period last year, reflecting a growth of 10.1%[18] - The cash inflow from financing activities was CNY 487,559,091.28, down from CNY 690,101,199.19 in the previous period, representing a decline of 29.3%[19] - The net cash flow from financing activities was CNY 359,620,444.34, a decrease of 36.9% compared to CNY 569,610,602.35 in the same period last year[19] Investments and Expenses - Research and development expenses increased to ¥452,959,054.85, compared to ¥369,405,270.08, indicating a growth of 22.5% year-over-year[16] - The company's long-term equity investments decreased to CNY 56.13 million from CNY 61.21 million, a decline of approximately 8.5%[13] - The cash outflow from investment activities totaled CNY 1,136,595,613.91, a decrease of 62.1% compared to CNY 2,998,730,154.50 in the previous period[19] - The net cash flow from investment activities was negative CNY 236,185,097.67, worsening from negative CNY 133,114,345.31 in the same period last year[19] Inventory and Receivables - Inventory levels increased to CNY 2.37 billion from CNY 1.96 billion year-over-year, indicating a rise of about 20.1%[12] - The company's accounts receivable decreased slightly to CNY 1.62 billion from CNY 1.64 billion, a decline of approximately 1.9%[12] - The company's inventory stood at CNY 1,959,070,016.19, remaining stable compared to the previous period[20] - The accounts receivable amounted to CNY 1,638,252,907.80, unchanged from the previous period[20] Shareholder Actions - The company approved the grant of 2.276 million restricted shares at a price of CNY 12.40 per share to 196 incentive objects, as part of its 2019 restricted stock incentive plan[11] Audit Status - The report for the third quarter was not audited[23]

Financial Performance - The company's operating revenue for the first half of 2021 was ¥3,137,320,263.82, representing a 22.63% increase compared to ¥2,558,456,609.96 in the same period last year[12]. - The net profit attributable to shareholders was ¥292,654,780.25, up 39.83% from ¥209,292,615.44 year-on-year[12]. - The net profit after deducting non-recurring gains and losses was ¥284,305,069.04, reflecting a 39.75% increase compared to ¥203,437,366.19 in the previous year[12]. - Basic earnings per share rose to ¥0.43, a 34.38% increase from ¥0.32 in the previous year[12]. - Diluted earnings per share increased to ¥0.44, up 41.94% from ¥0.31 year-on-year[12]. - The company's net profit for the first half of 2021 was CNY 960,370,758.62, compared to CNY 810,031,873.47 in the same period last year, representing an increase of about 18.5%[81]. - The company reported a total profit of ¥309,516,002.39 for the first half of 2021, compared to ¥217,708,311.91 in the first half of 2020, marking a 42.2% increase[83]. - The company's total comprehensive income for the first half of 2021 was ¥274,319,334.86, compared to ¥198,610,968.09 in the previous year, indicating a 38.1% increase[84]. Cash Flow and Assets - The net cash flow from operating activities reached ¥315,257,962.18, a significant increase of 233.44% from ¥94,546,269.96 in the same period last year[12]. - Cash and cash equivalents at the end of the reporting period amounted to ¥2,646,342,204.10, representing 29.53% of total assets, an increase from 29.09% at the end of the previous year[30]. - The company reported a net increase in cash and cash equivalents of ¥167,280,709.39, down 29.60% from the previous period[23]. - Total assets at the end of the reporting period were ¥8,961,932,866.09, a 4.76% increase from ¥8,554,641,008.78 at the end of the previous year[12]. - The total current assets as of June 30, 2021, amounted to CNY 7,220,318,967.60, an increase from CNY 6,903,818,186.47 at the end of 2020, reflecting a growth of approximately 4.6%[75]. Market Position and Strategy - The company holds a 7.1% market share globally, ranking fourth in the industry according to Omdia data[19]. - The company is focusing on expanding its product offerings in high-speed optical modules and related solutions to meet market demands[18]. - The company plans to enhance its supply chain and market systems to improve resilience against macroeconomic risks and to capitalize on new opportunities in 5G, big data, and the Internet of Things[38]. - The company is positioned to leverage opportunities in the digital economy, with a focus on new applications and industry layouts driven by 5G and cloud computing[20]. - The company plans to expand its market presence and invest in new product development to enhance competitiveness in the optical technology sector[102]. Research and Development - R&D investment increased to ¥280,209,888.68, up 22.54% from ¥228,661,700.20[23]. - The company aims to maintain strong investment in R&D and optimize its product development processes to keep pace with rapid technological advancements and market demands[38]. - The company plans to increase market research depth and R&D investment to strengthen its core competitiveness and explore new application scenarios for optoelectronic devices[39]. Risks and Challenges - The ongoing COVID-19 pandemic continues to pose risks to the global economy, affecting supply chains and international trade[2]. - The company is facing risks from the ongoing COVID-19 pandemic, which has negatively impacted global economic conditions and created uncertainties in international trade and investment[38]. - The company reported a net loss of 107,000.00 yuan for the period[93]. Shareholder Information - The company did not distribute cash dividends or issue bonus shares for the first half of 2021[42]. - A total of 5,243,000 shares of restricted stock were unlocked for 470 eligible incentive recipients in the second unlocking period[43]. - The largest shareholder, Fenghuo Technology Group Co., Ltd., holds 41.79% of the shares, totaling 291,478,944 shares, with 5,730,633 shares under restriction[64]. - The company has a total of 74,744 shareholders at the end of the reporting period, with no changes in the number of shareholders with voting rights[64]. Compliance and Governance - The company reported no significant litigation or arbitration matters during the reporting period[48]. - The company did not experience any non-compliance issues or penalties related to environmental protection during the reporting period[46]. - The company has no significant related party transactions during the reporting period[50]. - The company’s half-year financial report was not audited[48]. Financial Structure - The total liabilities increased to CNY 3,688,745,977.09, up from CNY 3,543,412,819.65, representing a growth of approximately 4.1% year-over-year[77]. - The total equity attributable to shareholders at the end of the reporting period was 5,273,186,889.00 yuan[93]. - The company has maintained a stable capital structure with no new equity instruments issued during the reporting period[96]. Accounting Policies - The company recognizes its investments in joint ventures using the equity method, confirming its share of assets and liabilities[123]. - The company recognizes revenue when control of goods or services is transferred to the customer, which is when the customer can direct the use and obtain almost all economic benefits[172]. - The company applies the moving average method for inventory valuation upon issuance[137]. - The company recognizes share-based payments based on the fair value of equity instruments granted to employees for their services[168].