Core Viewpoint - Xi'an Juguang Technology Co., Ltd. (hereinafter referred to as "Juguang Technology" or "the company") has received an inquiry letter from the Shanghai Stock Exchange regarding its 2024 report, prompting a detailed review of its acquisition of Swiss SUSS Micro Optics SA (SMO) and subsequent financial performance [1][2]. Group 1: Acquisition and Financial Performance - The company completed the acquisition of 100% equity in SMO for approximately RMB 455 million, with SMO contributing RMB 194 million in revenue during the reporting period, significantly below the profit forecast made during the acquisition assessment [1][2]. - Post-acquisition, revenue from laser optical components and automotive application solutions increased by 38.71% and 66.63% year-on-year, respectively, but gross margins decreased by 12.27 percentage points and 84.88 percentage points [1][2]. - The company recognized goodwill impairment of RMB 34.25 million for the automotive application solutions business line, while no impairment was recorded for the laser optical business line [1][2]. Group 2: Customer and Market Analysis - The company provided details on the top five customers of SMO, including their backgrounds, sales amounts, and reasons for changes in sales [3][4]. - The decline in gross margins for both laser optical components and automotive application solutions was attributed to industry development, channel inventory, product price changes, and competitive landscape [5][6]. Group 3: Future Projections and Market Trends - The data communication market is expected to grow significantly, driven by increased demand for optical modules, with projections indicating a compound annual growth rate (CAGR) of 17% from 2022 to 2033 [11][12]. - The semiconductor market is also projected to grow at a CAGR of 12.28% from 2023 to 2032, indicating strong demand for micro-nano optical components [11][12]. - The automotive lighting market, particularly for micro-lens array (MLA) technology, is anticipated to reach a market size of approximately RMB 1.18 billion by 2025, with a CAGR of 89% from 2021 to 2025 [14][15].