"Star Market Daily" October 29th News (Reporter Huang Xiumei) Yuanjie Technology announced tonight (October 29) that in the first three quarters of this year, the company achieved revenues of approximately 0.178 billion yuan, a year-on-year increase of 91.2%; the net profit attributable to the parent company was -0.55 million yuan, with a loss amount increasing by 102.6%.

In the third quarter of this year, Yuanjie Technology achieved revenues of 58.02 million yuan, an 82% year-on-year increase; the net profit attributable to the parent company was -11.3 million yuan, with a loss amount increasing by 649.5%; the net income in the third quarter of this year hit a new low in nearly two years.

As of the end of the third quarter of this year, Yuanjie Technology's total assets were 2.154 billion yuan, a decrease of 3.7% from the end of the previous year; the net assets were 2.076 billion yuan, a decrease of 1.9% from the end of the previous year.

Yuanjie Technology is mainly engaged in the research and production in the semiconductor field, especially focusing on optical chip products. The company stated that the revenue growth is mainly due to a certain recovery in the optical chip industry compared to last year, leading to an increase in the company's revenue; however, there was a significant decrease in net income, mainly due to three factors:

First, during the reporting period, the proportion of shipments of negative gross margin products such as 2.5G was high, leading to a decrease in gross margin. With intensified product price competition, the provision for inventory impairment increased, resulting in a significant provision for inventory depreciation; second, in order to actively cope with the intensified competition in the mid-to-low-speed product market, the company continued to increase research and development investment in high value-added products such as EML and silicon photonics; third, there was a year-on-year decrease in government subsidies and financial income during the reporting period.

Yuanjie Technology recognized credit impairment losses and asset impairment losses of -0.6013 million yuan and 12.7625 million yuan respectively in the first three quarters of this year. The total impact on the company's consolidated statement of profit or loss for the first three quarters of this year was 12.1612 million yuan.

It is worth mentioning that with the rapid development of artificial intelligence this year, downstream applications of Yuanjie Technology such as the telecommunications market and datacenter market have generated significant demand for high-speed optical chips, driving a substantial increase in the company's revenue from optical chip products.

Yuanjie Technology also mentioned in a recent investor survey that it has increased its investment in related technologies and equipment for high-speed optical chips and high-power optical chips. The research and development investment in the first three quarters of this year totaled 36.022 million yuan, a year-on-year increase of 59.18%.

"Currently, among the company's main high-end products, the CW light source 70mW product has already passed testing with some customers; the 100G PAM4 EML optical chip is currently undergoing customer-side sample testing; the 200G PAM4 EML is in the product development stage, with initial completion of performance development and in-house testing, and is continuously being optimized," Yuanjie Technology stated.