“Science and Technology Innovation Board Daily”, November 13 (Reporter Huang Xiumei) “The year-on-year decline in the company's revenue in the first three quarters was mainly due to performance pressure in the first quarter, but the subsequent situation has improved.” At the 2024 third quarter results briefing held today (November 13), Min Dayong, Chairman and General Manager of Changguang Huaxin, said.

Changguang Huaxin focuses on the semiconductor laser industry and has always focused on R&D, manufacturing and sales of core components in the laser industry, such as semiconductor laser chips, devices and modules. The company has also received market attention due to its recent deployment in emerging fields such as optical communications and automotive lidar.

However, from the perspective of business performance, in the past two years, Changguang Huaxin has been in a state of loss since its results changed 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 decrease of 7.58%.

Therefore, at the performance briefing held today (November 13), many investors asked questions about how Changguang Huaxin can turn losses into profits and contribute revenue to emerging businesses.

“Up to now, most of the company's main revenue still comes from the application of industrial fiber lasers, and this part of the business has been greatly affected. The emerging business is still in the investment and introduction stage, and next year is expected to be a critical turning point, when the company is expected to achieve break-even.” Min Dayong, chairman and general manager of Changguang Huaxin, said in response to a question from the “Science and Technology Innovation Board Daily” reporter.

Min Dayong further stated from the company's business segment, “In the field of industrial lasers, although market competition is fierce and price competition is remarkable, downstream demand is stabilizing, and the downward trend has basically stopped. Traditional fiber lasers are growing steadily, 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 been fully verified by leading customers and have already been shipped in small quantities. Next year, the domestic market may usher in considerable demand.” Min Dae-yong said.

“In the field of automotive lidar, high-performance VCSELs have been verified by leading customers and have entered the mass production stage; the target revenue for this generation of lidar VCSEL chips is expected to be tens of millions. There is more room for all-solid-state lidars in the future. The company has now begun research and development of next-generation all-solid-state automotive lidars, including a 2D addressing all-solid-state solution.” Min Dae-yong said.

In addition, Min Dayong also mentioned the latest situation in the field of special research: “This year's market pattern is roughly the same as last year. The company's revenue mainly comes from R&D and sales, but end-user R&D is more pragmatic and starts from application, and it can be seen that a large number of user nodes are more clear.”