Core Viewpoint - The recent detention of the chairman of New Light Optoelectronics raises concerns about the company's governance and operational stability, especially given its ongoing financial struggles and project delays [3][4][15]. Company Overview - New Light Optoelectronics, established in 2007, is the first Sci-Tech Innovation Board listed company in Northeast China, focusing on high-tech components and solutions for weapon systems [4]. - The company has faced significant operational challenges, including a decline in revenue and increasing losses since its IPO in 2019 [8][10]. Financial Performance - The company reported revenues of 1.50 billion yuan, 1.62 billion yuan, and 1.72 billion yuan for the years 2022, 2023, and 2024, respectively, indicating a downward trend from its peak revenue of 2.08 billion yuan in 2018 [8][9]. - Net losses have accumulated to over 130 million yuan from 2022 to 2024, with a continuous decline in profitability [8][9]. - In the first half of 2025, the company achieved revenue of 21.28 million yuan, a 58.77% year-on-year decline, primarily due to a 65.89% drop in income from its main optical target and scene simulation systems [9][10]. Accounts Receivable Issues - The company's accounts receivable balance was reported at 212.56 million yuan, significantly exceeding its revenue, raising concerns about cash flow and operational efficiency [11][12]. - The lengthy payment cycles typical in the defense industry contribute to high accounts receivable, complicating the company's financial situation [11][12]. Project Delays and Fund Management - New Light Optoelectronics has faced delays in its fundraising projects, with only 47.42% of the raised 865 million yuan utilized as of mid-2025 [13][14]. - The company has resorted to investing idle funds in financial products, which has drawn scrutiny given the ongoing project delays [14][15]. Leadership and Governance - The chairman, Kang Weimin, has been detained, leading to concerns about the company's governance and future direction [3][15]. - The management's ability to adapt and efficiently convert projects into revenue will be critical for the company's recovery [15].