Core Viewpoint - Ligent Technologies, Inc. (纳真科技) has submitted its listing application to the Hong Kong Stock Exchange, aiming to raise funds for product development, capacity expansion, market promotion, strategic investments, and working capital [1][2]. Financial Performance - In the first half of 2025, Ligent Technologies experienced explosive growth, with revenue and net profit increasing by 124.01% and 6501.97% year-on-year, respectively [1]. - The company's revenue for 2022-2025 showed fluctuations, with revenues of 50.43 billion, 42.39 billion, 50.87 billion, and 42.16 billion RMB, and net profits of 4.29 billion, 2.16 billion, 0.89 billion, and 5.1 billion RMB [13][17]. Market Position and Competition - Ligent Technologies claims to be the "fifth globally and third in China" in the professional optical module market, but discrepancies exist with rankings from LightCounting, which places it seventh globally and fifth in China [2][10]. - The optical module industry is becoming increasingly competitive, with Ligent's average selling price significantly lower than its peers, reflecting a "price-for-volume" sales strategy [1][18]. Product Segmentation - The main business segments of Ligent Technologies include optical modules and optical network terminals, with optical module revenues showing a V-shaped trend from 32.72 billion to 36.82 billion RMB [15][17]. - The company has also ventured into producing optical chips, although their revenue contribution remains minimal [17]. Profitability and Margins - Ligent Technologies has seen a decline in gross margins across its product lines, with the gross margin for data communication modules dropping from 31.2% to 25.2% from 2022 to 2024 [18][20]. - The company's gross margins are significantly lower than those of industry leaders, indicating a potential loss of competitive edge [20]. Future Outlook - The global market for optical modules, particularly those with speeds of 400G and above, is expected to grow significantly, with 1.6T optical modules projected to see a compound annual growth rate of 180.0% from 2024 to 2029 [21]. - Ligent Technologies has begun delivering samples of its 1.6T optical modules, with commercial production expected by 2026 [21].