According to the Star Daily on November 13 (reporter Huang Xiumei), "The year-on-year decline in revenue for the first three quarters of the company is mainly due to the performance pressure in the first quarter, but the subsequent situation has improved." This was stated by Changguang Huaxin's Chairman and General Manager, Min Dayong, at the performance briefing held today (November 13) for the third quarter of 2024.

Changguang Huaxin focuses on the semiconductor laser industry, continuously concentrating on the research, manufacturing, and sales of core components in the laser industry, such as semiconductor laser chips, devices, and modules. The company has also gained market attention due to its recent investments in emerging fields such as optical communication and automotive lidar.

However, from the perspective of operational performance, Changguang Huaxin has been in a loss state since its performance turned from profit to loss in the first quarter of 2023. The company achieved revenue of 0.203 billion yuan in the first three quarters of this year, a year-on-year decline of 7.58%.

Therefore, at the performance briefing held today (November 13), many investors inquired about how Changguang Huaxin plans to turn losses into profits and the contribution of emerging businesses to revenue.

"As of now, most of the company's major revenue still comes from the application of industrial fiber lasers, which has been significantly impacted. Emerging businesses are still in the investment and introduction phase, and next year is expected to be a critical turning point, at which time the company is expected to achieve breakeven," stated Changguang Huaxin's Chairman and General Manager, Min Dayong, in response to a question from a reporter from the Star Daily.

Min Dayong further stated from the company's business sector, "In the industrial laser field, although market competition is fierce and price competition is significant, downstream demand tends to stabilize, and the declining trend has basically stopped. The growth of traditional fiber lasers is relatively stable, while emerging applications such as laser heating are expected to become new growth points."

In the field of optical communication, the domestic market is currently increasing the application of high-end domestic chips. The company's three products have already been fully validated by major customers, and small batches have been shipped. The domestic market may see considerable demand next year," Min Dayong stated.

In the field of vehicle lidar, high-performance VCSEL has passed validation by major customers and has entered the mass production stage; it is expected that the target revenue scale for the current generation of lidar VCSEL chips is in the tens of millions. The future potential for solid-state lidar is even greater, and the company has currently initiated R&D for the next generation of solid-state vehicle lidar, including a 2D addressing solid-state solution," Min Dayong said.

In addition, Min Dayong also mentioned the latest situation in special scientific research fields: "This year's market shape is roughly the same as last year, with the company's revenue mainly coming from research and development sales. However, end users' research and development is becoming more pragmatic, starting from applications, and it is evident that the volume of usage nodes is becoming clearer."