Core Viewpoint - The article discusses the rapid rise of Xinyisong's stock price, which has increased nearly 30 times in three years, while highlighting the contradiction between the company's domestic AI narrative and its actual revenue sources, which are predominantly overseas. The article raises concerns about whether Xinyisong can pivot back to the domestic market amidst a booming AI investment environment and notes the significant stock sell-offs by its major shareholders, suggesting a lack of confidence in the company's future prospects [5][10][24]. Company Overview - Xinyisong was founded in 2008 and has experienced significant growth, particularly after its IPO in 2016. The company initially focused on lower-speed optical modules but shifted its R&D towards higher-speed products, which has contributed to its recent success [8][10]. - The company has benefited from the global increase in capital expenditure by major cloud service providers, leading to a surge in demand for optical modules [10][24]. Financial Performance - In 2024, Xinyisong's optical module sales reached 8.73 million units, a year-on-year increase of nearly 45%. Revenue surged to 8.647 billion yuan, a 179.15% increase, and net profit skyrocketed to 2.838 billion yuan, up 312.26% [10]. - By mid-2025, revenue exceeded 10.437 billion yuan, approximately four times that of the same period last year, with net profit reaching 3.942 billion yuan, a 4.6-fold increase [10]. Shareholder Actions - Despite the company's impressive performance, major shareholders, including the actual controller, have been selling off their shares, raising concerns about their confidence in the company's future. The actual controller has sold shares worth over 570 million yuan through various means, including a significant reduction in holdings [14][15][16][17]. - The low shareholding percentages of the actual controllers, at 7.4% and 7.13%, are notably low for a listed company, indicating a potential lack of long-term commitment [18]. Cash Flow and Financial Health - Xinyisong's accounts receivable have increased significantly, rising from 715 million yuan at the end of 2023 to 2.54 billion yuan by the end of 2024, indicating a growing cash flow pressure [20][21]. - The company's inventory has also ballooned, with inventory levels reaching 6 billion yuan by mid-2025, suggesting potential issues with sales and market absorption [21][22]. - The asset-liability ratio has increased from 15.12% in 2023 to 33.08% by mid-2025, indicating rising financial pressure [22]. Market Position and Risks - Xinyisong's narrative is centered around the domestic AI boom, yet over 94% of its revenue comes from overseas markets, raising questions about its ability to capitalize on domestic opportunities [24][25]. - The company faces challenges in transitioning back to the domestic market, as established relationships and market positions in overseas markets may not easily translate to domestic success [25]. - The article suggests that while Xinyisong is currently a star in the AI sector, its future is uncertain, especially if it fails to adapt to the rapidly changing market dynamics [24][25].