Eoptolink: Rich 5G product series, some of which have been shipped

Xinyi Sheng stated on the interactive platform that optical modules carry most of the signal transmission of the physical layer of 5G communications and are an indispensable component of 5G communications. The company now has a rich series of 5G products (covering fronthaul, midhaul, and backhaul), and has made sufficient preparations in terms of customer expansion and production capacity. Some 5G products have begun to be shipped, and various tasks are progressing steadily.

Previously, Xinyisheng released its 2018 annual report, with operating income of 760 million yuan, a year-on-year decrease of 13.38%; net profit attributable to shareholders of listed companies was 31.83 million yuan, a year-on-year decrease of 71.35%. At the same time, in the first quarter of 2019, revenue was 224 million yuan, a year-on-year increase of 26.13%, and net profit attributable to shareholders was 32.41 million yuan, a year-on-year increase of 991%.

Regarding the sharp decline in net profit in 2018, Xin Yisheng stated that it was mainly due to: affected by the domestic market competition environment and individual important customers, the sales volume and prices of some products decreased compared with the same period last year; the company increased its fixed asset investment, built new production lines, and increased depreciation expenses; the company's inventory impairment losses increased (inventory write-down provisions were made); and amortization of restricted stock incentive expenses.

The significant increase in net profit in the first quarter was mainly due to the increase in sales of the company's medium and high-speed optical modules, and the significant increase in operating income and gross profit margin compared with the same period last year.

Eoptolink is one of the few companies in China that has delivered 100G optical modules in batches, mastered high-speed optical device chip packaging and optical device packaging, and has successfully developed 200G and 400G optical module products, some of which have passed verification and achieved mass production. With the rapid development of 5G and data center markets in the future, the optical module industry will have new market opportunities. The company's product categories cover 3,000 types, and the production line can quickly respond to small batches from small and medium-sized customers, and support large batches from large customers.