Core Viewpoint - Yuxun Co., Ltd. has passed the review for listing on the Sci-Tech Innovation Board, but faces multiple concerns regarding its financial health and governance structure, including declining gross margins and potential conflicts of interest in its R&D practices [2][9]. Financial Performance - The company's gross margin has decreased from 55.26% in 2022 to 43.48% in the first half of 2025, marking a continuous decline over three years [3][6]. - Revenue for the first half of 2025 is reported at 238.50 million, a 31.11% increase from 410.56 million in 2024, while net profit stands at 46.96 million, an 8.02% increase from 77.87 million in 2024 [7]. - The reliance on low-speed chips remains high, with 10G and below speed chips accounting for the majority of revenue, while high-speed chips (25G and above) represent less than 20% [6][8]. Product Structure and Market Position - The company is experiencing challenges due to a product structure heavily reliant on mid-to-low-speed chips, which are becoming less profitable in a competitive market [6][8]. - Despite launching innovative products, the transition to high-speed optical chips and other advanced technologies is slow, raising concerns about future profitability [6][8]. Governance and R&D Concerns - The company has faced scrutiny over its governance structure, particularly regarding related-party transactions in R&D, with over 21 million spent on outsourced R&D, raising questions about potential conflicts of interest [9][10]. - The high dividend payouts alongside significant fundraising efforts have drawn regulatory attention, leading to concerns about the company's financial strategy [10][11]. - The controlling shareholders hold less than 30% of the voting rights, which may lead to governance risks and decision-making challenges [11][12]. R&D Investment and Future Outlook - R&D expenditure as a percentage of revenue has decreased from 21.14% in 2022 to 15.81% in the first half of 2025, indicating a potential shift in focus away from technological advancement [12]. - The company plans to allocate 809 million for the development of next-generation access networks and high-speed data center chips, but the success of these projects remains uncertain [7][12].