Group 1: Semiconductor Optical Business - The company's semiconductor optical business revenue for 2024 is approximately 17.7 million yuan, with ongoing efforts to expand customer cooperation and enhance technical exchanges [1][2] - The semiconductor optical business includes applications in lithography, packaging testing, and measurement, focusing on both mature and advanced processes [2] Group 2: Precision Processing Equipment - The company has invested in advanced processing equipment such as ion beam and magnetorheological polishing to meet high precision requirements in semiconductor and aerospace applications [3] - The advanced manufacturing process center has been established to enhance precision processing capabilities, although current utilization rates of these advanced machines are low due to product size differences [3] Group 3: Talent Development - As of the end of 2024, the company has over 700 employees, with 151 technical personnel, accounting for 21.09% of the total workforce [4] - The company plans to continue building a talent pipeline to enhance personnel quality and develop a high-caliber talent team [4] Group 4: Micro-Nano Optical Laboratory - The micro-nano optical laboratory has completed its main construction and is focusing on developing sub-wavelength optical components for various applications, including semiconductor optics and AR/VR [5] - The laboratory aims to collaborate with external universities and research institutions to enhance its R&D capabilities [5] Group 5: International Business and Trade Impact - In 2024, the company's overseas business generated revenue of 12,750.37 million yuan, accounting for 30.66% of total revenue, primarily from its wholly-owned subsidiary in Singapore [6] - The company is monitoring international trade environments and tariff policy changes to mitigate potential impacts on its business [6] Group 6: Profit Margin Outlook - The company's gross margin has declined due to lower margins on infrared optical products influenced by raw material supply issues [7][8] - The company continues to focus on high-value-added products in the industrial sector to maintain relative stability in gross margins [8]

Core Viewpoint - The company reported a decline in net profit for 2024 and Q1 2025, primarily due to the impact of recent acquisitions and integration challenges, which were in line with market expectations [1][2]. Financial Performance - In 2024, the company achieved revenue of 620 million yuan, a year-on-year increase of 10.49%, but reported a net loss of 175 million yuan, a significant decline of 293.17% [1]. - For Q1 2025, revenue was 170 million yuan, up 23.75% year-on-year, while the net loss was 32 million yuan, down 97.38% year-on-year [1]. Business Segments Upstream Business - Revenue from semiconductor laser components and materials in 2024 was 150 million yuan, down 34.42% year-on-year due to increased competition and price pressure [3]. - Revenue from laser optical components was 287 million yuan, up 38.71% year-on-year, driven by the acquisition of Swiss Light [3]. Midstream Applications - Automotive applications generated revenue of 77 million yuan, a significant increase of 66.63% year-on-year, attributed to new projects from the Swiss Light acquisition [4]. - Revenue from semiconductor processing was 69 million yuan, up 10.19% year-on-year, supported by growth in wafer annealing and new product developments [4]. - Revenue from healthcare applications was 17 million yuan, up 44.65% year-on-year, as more clients adopted the company's laser skin treatment modules [4]. Gross Margin and Cost Structure - The overall gross margin for 2024 was 28.11%, a decrease of 19.85 percentage points year-on-year, while Q1 2025 saw a recovery to 33.39% [5]. - The gross margin for laser optical components was down 10.39 percentage points year-on-year due to competitive pricing pressures [6]. - The automotive application solutions experienced a significant drop in gross margin due to high production costs from Switzerland, which are expected to improve following the relocation of production to China [6]. Strategic Outlook - The company aims to enhance its core competitiveness through acquisitions and is focusing on expanding into new fields, including optical communication, consumer electronics, and healthcare [8]. - Ongoing R&D efforts are directed towards developing high-power, reliable laser devices and optimizing manufacturing processes to reduce costs [9][10]. Earnings Forecast - The company adjusted its revenue forecasts for 2025-2026 to 832 million and 1.095 billion yuan, respectively, with expected net profits of 46 million and 153 million yuan [11].