Investment Rating - The report gives a "Strong Buy" rating for the company, indicating a positive outlook for its future performance [4][9]. Core Insights - The company focuses on machine vision and optical communication, with machine vision revenue growing from 815 million yuan in 2019 to 1.585 billion yuan in 2024, increasing its revenue share from 57% to 71% [4][13]. - AI technology is enhancing the machine vision industry, transitioning from simple detection to more complex judgment capabilities, thereby broadening application scenarios and improving accuracy [4][8]. - The company has developed its core algorithm platform, VisionWARE, which integrates AI with traditional rule-based systems, significantly enhancing its capabilities in complex industrial environments [4][67][68]. - The machine vision market in China is projected to grow from 18.147 billion yuan in 2024 to 37.6 billion yuan by 2028, driven by increased capital expenditure and quality demands in downstream industries [4][8]. - The company is strategically positioning itself in the optical motion capture and optical communication sectors, which are expected to have significant growth potential in the future [4][9]. Summary by Sections 1. Machine Vision and Optical Communication - The company's main business includes machine vision and optical communication, with machine vision revenue increasing significantly over the years [4][13]. - The company has a stable shareholding structure, with the controlling shareholders holding 48.56% of the shares [25]. 2. AI Empowerment in Machine Vision - AI is driving the evolution of machine vision from basic detection to advanced judgment, enhancing the efficiency and accuracy of visual inspections [4][42]. - The traditional machine vision systems are being complemented by deep learning technologies, which can handle complex detection tasks more effectively [4][50]. 3. VisionWARE Algorithm Platform - The VisionWARE platform has achieved a 60% integration of AI with traditional algorithms, allowing for improved performance in challenging industrial applications [4][67][68]. - The company has also launched the F.Brain deep learning platform, which enhances the efficiency of defect detection in industrial settings [4][75]. 4. Market Growth and Future Potential - The machine vision market is expected to grow significantly, with the company poised to benefit from this trend due to its innovative products and technologies [4][9]. - The optical communication sector is also highlighted as having substantial growth potential, with the global market expected to expand significantly in the coming years [4][9].

Core Viewpoint - The report outlines the ongoing supervision of Lingyun Optical Technology Co., Ltd. by China International Capital Corporation, highlighting the company's performance, risks, and financial indicators for the first half of 2025 [1][15]. Group 1: Ongoing Supervision and Performance - The ongoing supervision period for Lingyun Optical is from January 1, 2025, to June 30, 2025, with no major violations reported during this timeframe [1][15]. - In the first half of 2025, the company achieved a revenue of 1.368 billion yuan, representing a year-on-year increase of 25.73% [16]. - The total profit for the same period was 94 million yuan, reflecting a 30.59% increase compared to the previous year [16]. Group 2: Risk Factors - The company faces several core risks, including the inability to meet downstream application demands due to rapid technological changes in the industry [3]. - There is a risk of core talent loss, as the industry is talent-intensive and competition for skilled professionals is increasing [4]. - The risk of technology leakage exists, despite the company's efforts to implement strict confidentiality measures [5]. - Market competition is intensifying as more players enter the machine vision sector, necessitating continuous innovation and market adaptation [6]. - Operational management risks are heightened due to the company's expanding business scope and increasing complexity [7]. - Acquisition and integration risks are present as the company invests in key components of the machine vision supply chain [8]. - Financial risks include accounts receivable, inventory, exchange rate fluctuations, and goodwill impairment [9][10][11][12]. Group 3: Competitive Advantages - The company has established a mature and innovative team, with 674 R&D personnel, accounting for 37.34% of the total workforce [17]. - It has developed a robust upstream capability in the machine vision supply chain, including investments in camera, lens, and chip companies [19][20]. - The company has four major technology platforms that enable rapid product development and adaptation to market needs [21]. - Strong relationships with leading industry clients, such as Apple and Huawei, enhance the company's project management and solution delivery capabilities [22]. Group 4: R&D and Financial Management - R&D expenditure for the first half of 2025 accounted for 15.96% of revenue, a decrease of 3.94 percentage points year-on-year due to significant revenue growth [24]. - The company holds 827 patents and has participated in the formulation of 26 national and industry standards [26]. - The company has established a comprehensive fundraising management system to ensure compliance and efficient use of raised funds [30][33].