Yuanjie Technology turns profitable in 2025; 200G PAM4 EML product customer validation in progress

《Science and Technology Innovation Board Daily》 March 24, report (Reporter Wu Xuguang) On the evening of March 24, Yuanjie Technology, a popular stock in the CPO concept, released its 2025 annual report.

In 2025, Yuanjie Technology achieved operating revenue of RMB 601 million, a year-on-year increase of 138.50%; it achieved net profit of RMB 191 million, turning from a loss to a profit year-on-year. In the telecommunications market business, the company achieved revenue of RMB 206 million, up 2.06% from the same period last year; in the data center business, it achieved revenue of RMB 393 million, up 719.06% from the same period last year.

Yuanjie Technology plans to distribute cash dividends of RMB 7 per 10 shares (tax included), and at the same time convert 4.5 shares per 10 shares from capital reserve funds.

On a quarterly basis, in the fourth quarter the company achieved operating revenue of RMB 218 million, up 194.9% year-on-year; the parent-attributable net profit turned from a loss of RMB 5.58 million in the same period last year to a profit of RMB 85.03 million; non-recurring items adjusted parent-attributable net profit turned from a loss of RMB 7.07 million in the same period last year to a profit of RMB 70.46 million.

Regarding the reasons for the changes in performance, the company said: first, during the reporting period, the company’s revenue increased significantly, mainly because data center business revenue rose rapidly; since data center-related products have relatively high gross margins, they drove a substantial year-on-year improvement in net profit. Second, the company indirectly participated in equity investments through private funds, mainly investing in enterprises in high-tech fields such as next-generation information technology and intelligent manufacturing within China that have development potential, resulting in substantial investment returns. Third, during the reporting period, some government subsidy projects completed acceptance, and the corresponding government subsidies were recognized, which also contributed to net profit to a certain extent.

In terms of cash flow, Yuanjie Technology’s net cash flow from operating activities increased 692.34% year-on-year, mainly because the company stepped up sales collection efforts, leading to a significant increase in cash received from sales of goods and the provision of services.

Regarding R&D investment, during the reporting period, Yuanjie Technology’s total R&D expenses were RMB 80.84 million, compared with RMB 54.51 million in the same period last year; in 2025, the company’s total R&D investment accounted for 13.44% of operating revenue, down 8.18 percentage points from 21.62% last year.

Yuanjie Technology said that its total R&D investment has always maintained a trend of continuous growth, but the proportion has decreased somewhat. This is mainly because earlier R&D projects entered a stage of large-scale volume ramp-up; the growth rate of revenue is far higher than the growth rate of R&D investment, which is a normal performance after rapid growth in earnings.

Focusing on the optical chip industry, Yuanjie Technology’s main business is the R&D, design, production, and sales of optical chips. Its current core products are optical chips, mainly used in the telecommunications market, data center market, and automotive lidar market, among others; within the telecommunications market, it is further subdivided into two major segments: fiber access and mobile communication networks.

In the optical communications field, Yuanjie Technology’s main products include DFB and EML laser series products with rates of 2.5G, 10G, 25G, 50G, 100G, 200G and higher; as well as high-power silicon photonics light source products such as 50mW, 70mW, and 100mW, which are widely used in scenarios such as fiber access, 4G/5G mobile communication networks, and data centers.

In the automotive lidar field, the company’s products include categories such as automotive lidar laser sensor laser driver chips in the 1550nm band.

In the telecommunications market field, the company works with equipment providers at home and abroad to lay groundwork in advance for DFB/EML products required for the next-generation 25G/50G PON; batch shipments have already been achieved.

In the data center field, the company’s CW 70mW laser product has achieved large-scale deliveries, becoming a new growth driver for the company; at the same time, the company’s CW 100mW laser product launched concurrently has also achieved batch deliveries. In 2025, in the plug-and-play silicon photonics optical module area, the main demand is for 70mW light sources; for high-speed EML products, the 100G PAM4 EML product has completed customer validation, and the higher-spec 200G PAM4 EML product is being advanced in parallel with customer validation.

Meanwhile, the company is developing higher-power CW light sources such as 300mW. Currently, in line with customer needs, it is continuously improving product R&D; for CW optical chip demand in the OIO field, the company has already initiated related pre-research work to lay an early foundation in the cutting-edge technology track.

《Science and Technology Innovation Board Daily》 reporter noted that in February this year, Yuanjie Technology announced that it plans to invest in the Phase II project to build an optical-electronic communications semiconductor chip and device R&D and production base, with a total project investment of approximately RMB 1.251 billion.

The project focuses on high-speed optical chips, seizing opportunities in the data center market development. It aligns with the demand trend for optical communication core components driven by the development of the digital economy. After the project is completed, it will help the company capture the industry growth dividend and meet customers’ continuously increasing product demand in areas such as data center construction.

Regarding capital deployment, this year, Yuanjie Technology has officially started preparations for listing in Hong Kong.

In early March, the company released an announcement stating that, to further deepen its internationalization strategy and global layout, and build an international capital operations platform, it plans to broaden overseas financing channels and further strengthen capital strength and enhance overall competitiveness. It plans to issue H shares and apply for a listing on the main board of the Hong Kong Stock Exchange.

In terms of secondary market performance, today’s closing share price was RMB 1,065.00 per share, up 3.60%, and the total market capitalization reached RMB 91.53 billion. Based on the latest closing price, Yuanjie Technology ranks first among Science and Technology Innovation Board stocks by share price. The subsequent stocks are Cambricon, and Guodian Quantum; their latest closing prices are RMB 1,028.50 per share and RMB 593.98 per share, respectively.

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