Core Viewpoint - Chengdu Xinyi Communication Technology Co., Ltd. (hereinafter referred to as "Xinyi") has demonstrated significant growth in net profit for the fiscal year 2024 and the first quarter of 2025, with year-on-year growth rates of 312.26% and 384.54% respectively, raising questions about the sustainability of this growth [1][2]. Group 1: Financial Performance - In 2024, Xinyi's domestic and international revenue reached 1.842 billion yuan and 6.805 billion yuan, with year-on-year growth rates of 265.95% and 162.31% respectively [2]. - The company's foreign revenue accounted for 78.7% of total revenue in 2024, indicating a strong international market presence despite geopolitical and trade policy challenges [2]. Group 2: Business Strategy - Xinyi plans to enhance its market promotion and customer expansion efforts both domestically and internationally, focusing on collaboration with leading global communication equipment manufacturers and internet companies [2]. - The company aims to continuously optimize its product and customer structure to improve market share [2]. Group 3: Product Development - Xinyi has made significant advancements in R&D, successfully launching the latest 800G/1.6T optical module products based on single-wave 200G optical devices, and expanding its product range to include various high-speed optical module solutions [2]. - The production capacity, output, and sales of Xinyi's point-to-point optical modules in 2024 were 10.6 million units, 9.79 million units, and 8.73 million units respectively, all showing year-on-year growth [2]. Group 4: Operational Efficiency - The establishment of the second phase of Xinyi's factory in Thailand, which began operations in early 2025, is expected to positively impact the company's production capacity [2].

Group 1: Company Development Goals - The company aims to focus on its core business and enhance R&D capabilities for new products and technologies [1] - The company plans to strengthen market expansion and improve product competitiveness in key application areas [1] Group 2: R&D Innovations - The company has launched the latest 800G/1.6T optical module products and continues to optimize technology solutions [2] - Future R&D efforts will focus on expanding new technology routes [2] Group 3: Production Capacity - The second phase of the Thailand factory was officially put into operation in early 2025, contributing positively to production capacity [3] Group 4: Financial Performance and Dividends - The company plans to distribute cash dividends of RMB 4.5 per 10 shares, totaling approximately RMB 318.96 million, along with a capital reserve increase of 4 shares per 10 shares [5] - The company reported significant growth in Q1 2024 and anticipates continued high growth in Q2 [4][7] Group 5: Market Trends and Strategies - The company expects domestic market growth to remain strong due to increased AI infrastructure spending [6] - The company is actively addressing the impact of U.S. tariff policies on order demand [6] - The company will enhance overseas market promotion and customer expansion efforts [7] Group 6: Industry Outlook - The application scenarios for optical modules are primarily in telecommunications and data center fields, which are expected to maintain high demand [7]