Core Viewpoint - The report outlines the fundraising and usage status of Shaanxi Yuanjie Semiconductor Technology Co., Ltd., detailing the total amount raised, its allocation, and the management of the funds as of June 30, 2025 [1]. Fundraising Overview - The company raised a total of RMB 1,378,677,327.54, with all funds received by December 16, 2022 [1]. - The net amount after deducting issuance costs was RMB 1,378,677,327.54 [1]. Fund Usage and Balance - As of June 30, 2025, the cumulative amount used from the raised funds was RMB 933,047,200, with RMB 121,325,500 used in the first half of 2025 [1]. - The remaining balance of the raised funds was RMB 481,205,600, which includes RMB 221,205,600 temporarily idle for cash management [1]. Fund Management - The company revised its fundraising management system to ensure proper storage, approval, usage, and supervision of the funds [1]. - A tripartite supervision agreement was signed with the sponsor and banks to ensure compliance with regulations [1]. Investment Projects - The company approved the use of RMB 30,638,880 to replace self-raised funds for investment projects and RMB 884,810 for issuance costs [2]. - The company also decided to use bank acceptance bills for project funding, which will be replaced with raised funds later [3]. Cash Management - The company plans to use up to RMB 600 million of excess and idle funds for cash management, investing in safe and liquid products [4]. - No idle funds were used to temporarily supplement working capital as of June 30, 2025 [3]. Surplus Fund Usage - The company approved the use of surplus funds amounting to RMB 82,588,600 for ongoing projects, specifically for the "50G Optical Chip Industrialization Project" [5]. - The company completed a share buyback using RMB 45 million of excess funds [5]. Changes in Fund Usage - The company approved an increase in investment for the "50G Optical Chip Industrialization Project" by RMB 27,500,000 [6]. - The company ensured compliance with regulations regarding the use and disclosure of fundraising [6].

Summary of Key Points from the Conference Call Industry Overview - The conference call focuses on the optical module industry, highlighting key players such as Source Photonics, Cambridge Technology, Hui Green Ecology, and Lian Technology [1][3][4]. Company Highlights Source Photonics - Ranked among the top ten global optical module suppliers, Source Photonics has a comprehensive production capability across the entire industry chain, including optical chip manufacturing and IDM processes [1][5]. - The company reported a revenue of nearly 1 billion yuan and a profit of 500-600 million yuan in Q1 2024, accounting for approximately 40% of its annual profit forecast [1][6]. - Strong demand for 800G products and a shortage of optical chips are driving growth, with significant advancements in data center transmission technologies [5][6]. Cambridge Technology - Entered the North American market by acquiring Lumentum's OCARO optical module product line, achieving over 90% of revenue from overseas markets [1][4]. - The company reported a record quarterly revenue of 90 million yuan, with a gross margin 2-3 percentage points higher than competitors [1][4][7]. - Cambridge Technology employs ODM and JDM models to enhance customer collaboration and expand production capacity globally [3][8]. Hui Green Ecology - Transitioned from a traditional retail background to focus on high-tech sectors, particularly optical communication, through the acquisition of Wuhan Junheng [11][12]. - Set performance targets for Wuhan Junheng, aiming for profits of 45 million, 55 million, and 68 million yuan from 2024 to 2026, with an incentive mechanism linked to actual performance [13][14]. - Plans to expand production capacity in Singapore and Malaysia, with significant investments in new production facilities [15]. Lian Technology - Shifted focus from telecommunications to high-end optical modules, with over 93% of its business now in 10G and above high-speed optical modules [18]. - Achieved significant sales in the optical module market, with 1.6T high-speed modules under development and expected to increase sales volume significantly in the coming years [17][18]. - The company is enhancing its overseas production capacity, particularly in Malaysia, to improve profitability [20]. Market Trends and Future Outlook - The optical module industry is experiencing a surge in demand, particularly for high-speed modules, driven by the growth of data centers and cloud computing [21]. - Emerging companies in the sector are expected to capitalize on opportunities for growth and collaboration, with a positive outlook for both leading and smaller players in the market [21]. - The overall industry is projected to benefit from increased overseas computing power demand, with potential for significant revenue growth across various companies [21].

Core Points - The company reported a significant increase in revenue for 2024, achieving 252.17 million yuan, a year-on-year growth of 74.63% [1][2] - Despite the revenue growth, the company experienced a net loss attributable to shareholders of 6.13 million yuan, compared to a profit of 19.48 million yuan in the previous year [1][2] - The company plans to distribute a cash dividend of 1 yuan per 10 shares to all shareholders [1] Financial Performance 2024 - Revenue for 2024 was 252,172,673.21 yuan, up from 144,403,649.04 yuan in 2023, marking a 74.63% increase [2] - The net profit attributable to shareholders was -6,133,875.94 yuan, a decrease of 131.49% from the previous year's profit of 19,479,815.27 yuan [2] - The net cash flow from operating activities was 18,960,995.49 yuan, a significant improvement from -17,399,733.48 yuan in the previous year [2] Financial Performance Q1 2025 - In the first quarter of 2025, the company achieved revenue of 84.40 million yuan, a year-on-year increase of 40.52% [3] - The net profit attributable to shareholders for Q1 2025 was 14.32 million yuan, reflecting a growth of 35.93% compared to the same period last year [3] - The net cash flow from operating activities for Q1 2025 was -5,461,966.72 yuan, a decline from 22,407,486.05 yuan in the previous year [3] Fundraising and Share Distribution - The company raised a total of 150.99 million yuan from its IPO, with a net amount of 137.87 million yuan, exceeding the original plan by 39.87 million yuan [4] - The funds raised are intended for projects including the construction of 10G and 25G optical chip production lines, a 50G optical chip industrialization project, and a research and development center [4] - The company announced a cash dividend of 0.65 yuan per share and a capital increase of 0.4 shares per existing share, resulting in a total share capital of 84,838,600 shares after distribution [4]

Summary of the Conference Call on Optical Chip Industry Industry Overview - The optical chip industry is experiencing a shift towards self-sufficiency, with global production capacity expected to ease from 30 million units in the early AI boom to over 90 million units by 2024, meeting market demand, although high-end optical chips (100G and above) still rely on suppliers from the US and Japan [1][2][20]. Key Points and Arguments - **Market Position**: Domestic optical module manufacturers hold a significant position in the global market, but they lag in high-end optical chip technology, particularly in indium phosphide substrates and Vixel special processes, with a technological gap of approximately 3 to 5 years compared to international leaders [1][3][27]. - **Market Evolution**: The optical module market is evolving towards optoelectronic integration solutions to address power consumption and heat dissipation issues in data centers, with silicon photonics expected to play a crucial role in high-speed data communication [1][5][6]. - **Domestic Production**: Progress in domestic production of 25G and below optical chips is satisfactory, but self-sufficiency in 25G and above remains low, with a domestic production rate of less than 5% for 100G and above products [1][10][11]. - **Challenges for Domestic Companies**: Companies like Yuanjie Technology and Shijia Photon face challenges such as insufficient mass production capacity and low yield rates, leading to higher costs and difficulties in competing with international firms [1][12][27]. - **Emerging Technologies**: Silicon photonics is seen as a key future direction, with major players like TSMC and Intel investing heavily in this area. The integration of optical components into CMOS technology is expected to enhance data center capabilities [6][14][18]. Additional Important Insights - **Global Competition**: The global optical chip market is dominated by five companies (Broadcom, Lumentum, Coherent, and Japan's Sumitomo and Mitsubishi), which collectively hold over 90% market share. The production capacity for 100G and above optical chips is primarily led by US and Japanese manufacturers [2][20][26]. - **Domestic Market Dynamics**: Domestic companies are increasingly investing in upstream industries and independent research to adapt to future market changes, with a focus on high-end and high-speed product development [16][17]. - **Market Demand**: Demand for optical chips is concentrated in data centers, telecom operators, and AI data centers, with significant needs from companies like Alibaba, Tencent, and Huawei [19][20]. - **Production Capacity and Yield**: The production capacity for 25G optical chips in China is around one million units annually, but still falls short of the ten million mark. The self-sufficiency rate for 25G is approximately 50%, while it is about 20% for 50G [9][10][22]. - **Future Projections**: By 2028, silicon photonics is expected to mature, capturing over 50% of the market share in high-speed communication, while traditional optical modules will continue to dominate in lower-speed applications [13][14]. This summary encapsulates the critical insights from the conference call regarding the optical chip industry, highlighting the current state, challenges, and future directions of the market.