Corporate Governance Changes - The company held its 21st meeting of the third board of directors on July 22, 2025, where it approved the proposal to change the chairman and elect a co-chairman [1] - Yao Hao was elected as the chairman of the board, while Bai Rujing was elected as the co-chairman, with their terms lasting until the end of the current board's term [1] Personnel Appointments - The company announced the appointment of Yin Haibo as the vice general manager, effective from the date of the board meeting [3] - Yao Hao, born in November 1975, has extensive experience in the finance and investment sectors, having held various positions in companies such as Ping An Life Insurance and CITIC Securities [3] - Bai Rujing, born in 1974, has a background in the 3C connector manufacturing and management field, previously working at Luxshare Precision Industry [3] Financial Performance - The company reported a revenue of 1.687 billion yuan for 2024, representing a year-on-year decrease of 2.72% [5] - The net profit attributable to shareholders was -353 million yuan, a significant decline of 972.54% year-on-year [5] - The basic earnings per share were reported at -2.10 yuan [5] Company Overview - Shenzhen Xinhau Optoelectronics Co., Ltd. was established on November 26, 2013, and went public on August 27, 2021 [6] - The company's main business involves the research, production, and sales of glass protective screens [6]

Core Viewpoint - The company Xinhau Optoelectronics (301051.SZ) is planning to transfer 100% equity of its wholly-owned subsidiary Xinguang Energy Technology (Anhui) Co., Ltd. to its related party Luxshare Precision (002475.SZ) due to underperformance and financial pressure [2][3]. Company Overview - Xinhau Optoelectronics acquired Xinguang Energy for approximately 100 million yuan, including a capital increase of 70 million yuan, aiming to expand into the energy storage market [3]. - Xinguang Energy primarily focuses on smart energy design and manufacturing, offering products such as energy storage solutions and inverters [3]. Financial Performance - Xinguang Energy has been operating at a loss, with losses of 839.66 million yuan from January to April 2023, which expanded to 4,051.37 million yuan for the entire year [3]. - The company's gross margin has turned negative, and its cash reserves are insufficient to cover short-term debts, indicating ongoing financial risks [2][7]. Strategic Shift - The transfer of Xinguang Energy is seen as a strategic move to optimize resource allocation and improve financial statements [4]. - The company plans to focus on its core business of glass protective screens and develop independent frequency modulation energy storage projects, indicating a shift away from energy storage diversification [6]. Operational Challenges - Xinhau Optoelectronics has faced challenges due to rapid factory expansions leading to increased debt and negative gross margins [7]. - The company reported a revenue of 1.687 billion yuan in 2024, a decrease of 2.72% year-on-year, with a net loss of 353 million yuan [7]. Investment and Expansion - Despite the divestment from Xinguang Energy, the company continues to invest in its core business, with a total investment of 2.212 billion yuan in 2024, a year-on-year increase of 77.58% [8]. - The company is also expanding its production capacity in various locations, including a new production base in Enshi, with an expected investment of 800 million yuan [8]. Market Dynamics - The company has experienced a decline in sales and production volumes in its main product lines, indicating potential overcapacity and challenges in the market [9]. - The competitive landscape in the photovoltaic sector has intensified, leading to significant impairment losses [7].

Group 1 - The core point of the article is that Xinhau Optoelectronics plans to transfer 100% equity of its wholly-owned subsidiary Anhui Xinguang to Lixun Precision to optimize its industrial layout [1] - The transaction is classified as a related party transaction due to the relationship between the shareholders and directors involved [1] - Anhui Xinguang, established in 2022, focuses on the research and production of new energy storage equipment, which has low synergy with Xinhau Optoelectronics' main business [1] Group 2 - Xinhau Optoelectronics aims to concentrate resources on its two core businesses: glass protective screens and mixed energy storage frequency modulation projects after divesting Anhui Xinguang [1] - In the glass protective screen sector, Xinhau Optoelectronics is one of the largest suppliers in China, with a projected revenue growth of 11.99% in 2024 and a gross margin increase to 17.57% [2] - Despite the asset divestiture, the company faces challenges with its operating performance, reporting a revenue of 1.687 billion yuan in 2024, a decrease of 2.72%, and a net loss of 353 million yuan [2]

Core Viewpoint - Xinhau Optoelectronics plans to transfer 100% equity of Anhui Xinguang to Luxshare Precision, which may provide financial support to Xinhau Optoelectronics as it faces losses in 2024 and the first quarter of 2025 [2][6][11]. Group 1: Transaction Details - On June 22, Xinhau Optoelectronics announced the signing of an equity transfer intention agreement with Luxshare Precision for the cash acquisition of Anhui Xinguang [6]. - This transaction is classified as a related party transaction due to the familial relationship between major shareholders of Xinhau Optoelectronics and Luxshare Precision [2][19]. Group 2: Financial Performance - Xinhau Optoelectronics reported significant losses in 2024, with a net profit attributable to shareholders of -353.38 million yuan and a non-recurring net profit of -364.77 million yuan [11][12]. - The company's revenue for 2024 was approximately 1.69 billion yuan, reflecting a decrease of 2.72% compared to 2023 [12]. Group 3: Business Challenges - The company has faced challenges in its photovoltaic business, primarily due to an oversupply in the market leading to declining prices and increased costs [9][10]. - Xinhau Optoelectronics aims to focus on its glass protection screen business and develop hybrid energy storage projects following the asset transfer [13]. Group 4: Market Position and Strategy - Xinhau Optoelectronics is attempting to expand its domestic market presence, but high industry barriers have limited its competitiveness and revenue generation [10]. - The company has been actively restructuring its asset portfolio to optimize resource allocation and improve overall performance [13].