With the rapid development of the datacenter market since the beginning of this year, Yuanjie Technology expects that the revenue scale of CW light source products will continue to grow in the fourth quarter of this year, and will further increase in the first quarter of next year.
"Science and Technology Innovation Board Daily" November 12th news (Reporter Huang Xiumei) "In the first three quarters of this year, the company's revenue growth is mainly attributed to the recovery of the optoelectronic chip industry from last year, but the net income of the company has decreased significantly due to various reasons." At the performance briefing for the third quarter of 2024 held today (November 12th), Yuanjie Technology's chairman and general manager Zhang Xingang stated.
Yuanjie Technology is mainly engaged in R&D and production in the semiconductor field, with a particular focus on optoelectronic chip products. In the first three quarters of this year, the company achieved revenue of approximately 0.178 billion yuan, a year-on-year growth of 91.2%; and a net loss attributable to the mother of -0.55 million yuan, an increase of 102.6% in the loss amount.
Regarding the current situation where the company's revenue is increasing but profitability is not, Zhang Xingang, when questioned by the reporter of "Science and Technology Innovation Board Daily", said that in addition to increasing R&D investment, the company's high proportion of negative gross margin product shipments in the 2.5G segment has led to an overall decrease in gross margin, along with increased provision for inventory impairment.
"The production of negative gross margin 2.5G products mainly comes from the telecommunications market, and the generation of negative gross margin is mainly due to intensified market price competition." In response to the situation of Yuanjie Technology's negative gross margin products, Zhang Xingang told the reporter of "Science and Technology Innovation Board Daily," "The company will further increase its R&D deployment and market expansion in the datacenter market in the future. As the datacenter market expands, the proportion of 2.5G product revenue will gradually decrease."
"Next year, the company may adjust its product structure, especially in the telecommunications market, by increasing the proportion of mid-to-high-end products, including 10G EML products, to enhance the gross margin support of the telecommunications market." Zhang Xingang further stated, "10G EML products are the key products promoted and shipped by the company in the telecommunications market. Market demand is expected to continue to improve next year, and the company has communicated with customers about their needs."
"Science and Technology Innovation Board Daily" reporters noticed that in recent years, Yuanjie Technology's comprehensive gross margin has significantly decreased year by year, from 61.90% in 2022 to 41.88% in 2023, a decrease of approximately 21.50 percentage points. From the first quarter to the third quarter of this year, the company's comprehensive gross margin was 34.84%, 32.00%, and 29.69%, further declining.
Zhang Xingang replied that Yuanjie Technology will restore the gross margin from two aspects: first, by expanding market development and optimizing the product structure, further increasing investment and market expansion in the datacenter field on the basis of the original telecommunications market; second, by strengthening cost control, further enhancing overall production efficiency and product process optimization.
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 a significant demand for high-speed optical chips.
"Due to the development of silicon optical module solutions, it is expected that the CW light source market will significantly grow next year. The company's CW light source products have already achieved mass shipments in the third quarter of this year. It is anticipated that the revenue in the fourth quarter of this year will continue to grow, and the revenue in the first quarter of next year will further increase," said Zhang Xingang.
Yuanjie Technology also mentioned in an investor survey at the end of October this year that, from the current perspective of the terminal market, the domestic market occupies the main share. At the same time, the company is expanding into overseas markets.
It is reported that among Yuanjie Technology's main high-end products, in addition to CW light source products, the 100G PAM4 EML optical chip is currently undergoing customer sampling tests; the 200G PAM4 EML is in the product development stage, with preliminary completion of performance research and in-house testing, and continuous optimization.