Core Viewpoint - The article discusses the approval of two companies, Beijing Angrui Microelectronics Technology Co., Ltd. and Xiamen Youxun Chip Co., Ltd., for their IPO applications on the Sci-Tech Innovation Board, indicating a positive trend in the IPO market [1][2]. Summary by Sections Company Overview - Angrui Micro is focused on integrated circuit design in the RF and analog fields, recognized as a national-level "little giant" enterprise. The company specializes in RF front-end chips, RF SoC chips, and other analog chips, with a strong emphasis on R&D and product iteration [8]. - Youxun Chip is a national champion in the optical communication sector, concentrating on the development and sales of optical communication front-end transceiver chips, which are crucial for the performance of optical communication systems [12]. Financial Performance - Angrui Micro's revenue from 2022 to the first half of 2025 is reported as follows: 0.923 billion, 1.695 billion, 2.1 billion, and 0.844 billion respectively, with net losses of -0.29 billion, -0.45 billion, -0.0647 billion, and -0.0403 billion, indicating that the company has not yet achieved profitability [8]. - Youxun Chip's revenue for the same period is: 0.339 billion, 0.313 billion, 0.411 billion, and 0.238 billion, with net profits of 0.081 billion, 0.072 billion, 0.079 billion, and 0.047 billion, showing a relatively stable performance [12]. IPO Process - Angrui Micro's IPO application was accepted on March 28, 2025, and after two rounds of inquiries, it was approved on October 15, 2025. The listing committee raised questions regarding the company's growth potential and sales increase justification [7][8]. - Youxun Chip's IPO application was accepted on June 26, 2025, and after being deferred on September 19, 2025, it was approved in a second meeting just four months later. The committee's inquiries focused on the sustainability of profit margins and the stability of control by the actual controller [11][12].

Core Insights - The article discusses the optical module industry, highlighting its significance in high-speed data transmission and its evolving technology landscape [6][9][10]. Industry Definition - Optical modules are essential components that convert electrical signals to optical signals, facilitating high-speed data transmission over fiber optics [6]. - They are critical in various applications, including data centers, telecommunications, and enterprise networks [7]. Technological Evolution - The optical module industry is evolving towards higher speeds (from 10G to 400G and beyond) and improved packaging techniques, such as silicon photonics integration and co-packaged optics (CPO) [9]. - Future advancements will require breakthroughs in chip technology, packaging, and thermal management, alongside industry collaboration and standardization [9][10]. Industry Structure - The optical module supply chain consists of upstream (core component suppliers), midstream (manufacturers), and downstream (end-users like data centers and telecom operators) [9][10]. - Key components include lasers, photodetectors, modulators, and high-speed circuit chips, which are crucial for performance and cost [10]. Market Trends - From 2020 to 2024, the number of financing events in the optical module sector fluctuated, decreasing from 59 in 2020 to 26 in 2023, before rebounding to 31 in 2024, indicating a shift towards investing in leading companies with scalable production capabilities [11]. Company Highlights - Afalight, established in 2016, focuses on next-generation optical modules and has achieved significant cost reductions and production efficiency through proprietary technologies [13]. - Weijian Intelligent, founded in 2019, specializes in high-precision chip packaging equipment and has established partnerships with major global optical device manufacturers [16][17]. - New Fei Guang, a subsidiary of OFILM Group, has developed a range of optical modules from 10G to 1.6T, with a focus on automated production and digital manufacturing [20][21]. Recent Developments - DingTong Technology plans to invest up to $15 million in Vietnam for the production of optical module cooling solutions [25]. - Huagong Technology launched the industry's first 3.2T CPO optical engine, significantly improving signal transmission efficiency [29]. - The establishment of Huagong Technology's optical electronics research park aims to produce over 40 million optical modules annually by 2027 [30].

Core Viewpoint - The company is actively engaged in the optical communication business and is exploring emerging technologies such as Co-Packaged Copper (CPC) for high-speed interconnects, while also offering a range of advanced optical communication products and solutions [1] Group 1: Company Technology and Products - The company is a distributor of internationally leading optical communication products and solutions [1] - Key products include 800G/1.6T silicon optical modules, OCS all-optical switching, PWB photonic wire bonding, and other high-end optoelectronic devices and instruments [1] Group 2: Market Trends and Future Outlook - There is growing market interest in CPC technology for short-distance high-speed interconnect applications [1] - The company is assessing its technical reserves in copper interconnect technology and considering research and product planning in this area [1]

Core Viewpoint - Lingyun Optics (688400.SH) is actively engaged in the optical communication sector, offering advanced products and solutions that are internationally recognized [1] Group 1: Company Overview - The company specializes in optical communication business, representing leading international optical communication products and solutions [1] - Key products include 800G/1.6T silicon optical modules, OCS all-optical switching, PWB photonic wire bonding, and other high-end optoelectronic devices and instruments [1]

Core Viewpoint - The company has successfully begun mass shipments of its 800G optical module products, which are expected to contribute to revenue growth in the first half of 2025 [1] Production Capacity - The company is continuously expanding its production capacity in response to changing customer demands [1] - The planned annual production capacity for the 800G series is expected to reach 2 million units by the end of 2025, with production distributed across factories in Shanghai, Jiaxing, and Malaysia [1]

Core Viewpoint - The company, Zhili Fang (301312.SZ), has launched multiple devices in the optical communication CPO field, indicating a positive growth trajectory in sales and delivery [1]. Group 1: Product Offerings - The company has introduced various devices including optical chip sorting machines, wafer sorting machines, optical chip AOI equipment, chip testing and sorting equipment, and high-speed high-precision solid crystal machines [1]. - The delivery of these products is proceeding in an orderly manner, suggesting effective operational management [1]. Group 2: Sales Performance - Sales are steadily increasing, reflecting a growing demand for the company's products in the optical communication sector [1].

Group 1 - The company, Hengtong Optical Communication Technology (Shenzhen) Co., Ltd., has officially started the IPO process on the Beijing Stock Exchange, with the review meeting scheduled for September 25, 2025 [1] - Hengtong focuses on the research, manufacturing, and sales of passive optical devices, with major business segments including passive optical fiber cabling, passive internal connection devices, and related supporting businesses [3] - From 2021 to June 2025, the company's operating revenue showed a consistent upward trend, with revenues of 396.98 million, 475.35 million, 613.36 million, 1.315 billion, and 1.021 billion yuan respectively [3] Group 2 - The main source of revenue for Hengtong comes from passive optical fiber cabling products, which accounted for approximately 66.13% to 73.36% of the main business income from 2021 to June 2025 [4] - The passive optical fiber cabling products include optical fiber connectors, which are widely used in fiber transmission lines, fiber distribution frames, testing instruments, and data center cabling [6] - The MPO optical fiber connector market is expected to exceed 6 billion USD by 2029, driven by the rapid development of data centers and the increasing demand for high-speed optical modules [6] Group 3 - Currently, there is a shortage of overall MPO optical fiber production capacity in China, with a 35% year-on-year increase in fiber imports as of May 2025 [7] - Companies like Hengtong are involved in various types of optical fiber connectors, including LC, SC, and MPO/MTP, although specific category proportions have not been disclosed [7]

Core Insights - OpenAI and NVIDIA announced a strategic partnership to deploy at least 10GW of NVIDIA systems for AI data centers, which will be used to train and run the next generation of OpenAI models [1][2] - NVIDIA's CEO stated that 10GW is equivalent to 4-5 million GPUs, which is about double NVIDIA's total shipments for 2024 and equal to its expected shipments for 2025 [1][2] - NVIDIA plans to invest up to $100 billion in OpenAI, with the first 1GW data center expected to be deployed in the second half of 2026 [2] Industry Trends - The demand for AI computing power is driving growth in the optical communication industry, with silicon photonics technology becoming the mainstream solution for 1.6T high-speed optical modules [3] - The competitive advantages of leading optical module companies are expected to strengthen, with increasing demand for CW lasers and passive components [3] - New technologies such as OCS, hollow-core fibers, thin-film lithium niobate, and CPO are gaining attention and maturity, presenting new market investment opportunities [3] Product Developments - NVIDIA's new Rubin CPX GPU is designed for large-scale context processing, enhancing efficiency for software coding and generative video [4] - The Rubin CPX offers up to 30 Pflops NVFP4 precision computing power and integrates with the Vera CPU and Rubin GPU, significantly increasing performance compared to previous models [4] - Each $100 million investment in the Vera NVL144CPX platform is projected to generate $5 billion in token revenue, indicating strong commercial potential [4] Cooling Solutions - The introduction of the Rubin CPX is expected to drive demand for chip-level liquid cooling solutions, as total power consumption in cabinets increases [5] - The liquid cooling sector is anticipated to benefit from the growing need for efficient thermal management in high-performance computing environments [5] Investment Recommendations - The report recommends investing in leading companies in the optical module and liquid cooling sectors, including Zhongji Xuchuang, Xinyi Sheng, Yingweike, Tianfu Communication, and Yuanjie Technology [6]

Summary of Conference Call Records Industry Overview - The conference call discusses the optical communication industry, specifically focusing on Optical Circuit Switch (OCS) technology and its market potential. The industry is expected to maintain high growth, particularly for leading optical module manufacturers in 2027-2028, making them a recommended investment direction [1][2]. Key Points and Arguments - **Investment Opportunities**: - Leading optical module manufacturers are highlighted for their high earnings certainty and reasonable valuations, with no signs of bubble formation for 2026 [2]. - Secondary overseas computing chain optical module manufacturers are also noted for having upward performance revision potential for 2026, presenting investment opportunities [3]. - **Emerging Technologies**: - New technologies are creating investment opportunities in three networking directions: Skill out (CPO/CPC), Skill up (OCS/OIO), and Skill across (hollow fiber). OCS is particularly noted for its low latency, low power consumption, and cross-generational hardware reuse advantages [1][5]. - **OCS Technology**: - OCS technology allows for direct switching of optical signals, achieving low latency (tens of nanoseconds) and low power consumption, while being transparent to data formats. However, it has longer switching delays (tens of milliseconds) and higher insertion losses [6][12]. - Major OCS technology solutions include MEMS (Google, Lumentum, Huawei) and liquid crystal (Coherent). MEMS is economically favorable but has longer switching times, while liquid crystal offers high reliability and scalability but requires optimization for switching times [7][8]. - **Market Growth Predictions**: - The OCS market is projected to exceed $1.6 billion by 2029, with potential market space estimated at $2 billion by Coherent [4][12]. Additional Important Content - **Challenges with Traditional Circuits**: - Traditional circuits face issues like packet loss during data transmission. OCS networking aims to reduce data loss and enhance performance in large-scale training clusters by providing more reliable data transmission paths [13]. - **Impact of Supernode Networking**: - The increasing demand for supernode networking highlights OCS's advantages in high predictability and high certainty traffic transmission scenarios, particularly in interconnections between racks or pods [14]. - **OCS Industry Chain**: - The OCS industry chain includes core components such as MEMS chips, optical circulators, lenses, and wavelength division multiplexers. It also involves the entire OCS system manufacturing process [15]. - **Domestic Participation**: - Domestic companies are primarily involved in various optical components or crystal materials and system manufacturing, playing a significant role in advancing OCS technology [16].

Group 1 - The core viewpoint of the article highlights that Dekoli (688205) has experienced unusual stock trading fluctuations driven by the demand for AI computing power, with a particular focus on OCS (Optical Circuit Switching) products [1] - The company is actively following advancements in cutting-edge technology, having received overseas sample orders for silicon-based OCS, although it has not yet secured bulk orders from major overseas manufacturers [1] - The OCS market is characterized by high interest and significant technical challenges, indicating that large-scale application will take time, and the market outlook remains uncertain [1]