"What is the difference between an active chip and a passive chip?"

"Seeing the strong technical force, is there any possibility of improving the net profit margin in the future?"

"What is the underlying logic of the long-term growth of the company's performance?"

"Do you have any plans for mergers and acquisitions?"

On the afternoon of March 19, Henan Shijia Photonics Technology Co., Ltd. (hereinafter referred to as Shijia Photonics, 688313.SH) welcomed a group of special guests - more than 30 well-known domestic investors from Beijing, Shanghai, Guangzhou, Shenzhen and other places. As the precursor of the 2025 M&A and Restructuring High-quality Development Conference, they focused on investigating 5 high-quality listed companies in Henan in two days, and Shijia Photonics is one of them.

The national investor Henan listed company research firm walked into Shijia Photon

"These are all leading enterprises in the subdivided field, and the founders are all from scratch in a remote town, working hard, and it is extremely difficult to go public with strength step by step. From another point of view, it is absolutely unique to be able to break through the limitations of geographical location, talent introduction, financing environment, etc., and become bigger and stronger. Often such enterprises are very vigorous and explosive, once the environment and soil are suitable, there will inevitably be explosive growth. An investor sighed after the survey.

The national investor Henan listed company research firm walked into Shijia Photon

The predecessor of Shijia Photonics is Zhengzhou Shijia Communication Technology Co., Ltd. (hereinafter referred to as Shijia Communication). In 2010, the competition in the indoor optical cable market entered a white heat, Shijia Communication and the Institute of Semiconductors of the Chinese Academy of Sciences aimed at the high-end field of the optical communication industry - optoelectronic chips, opened the research and development cooperation between the institute and the enterprise, and Shijia Photonics was formally established.

In the second year of the cooperation between the two parties, Shijia Photonics officially released the PLC optical splitter chip, becoming the first in China and the only company in China that could mass-produce the chip at that time. By 2015, this type of chip accounted for more than 50% of the global market.

Since then, Shijia Photonics has joined hands with the Chinese Academy of Sciences Semiconductor Institute on the road of R&D and innovation, and has successively developed AWG chips and components for data center optical modules, ultra-high refractive index difference DWDM AWG chips, DFB laser chips, etc., and a number of technologies have filled the domestic gap, becoming one of the few leading enterprises in China with the unique advantages of IDM mode passive + active dual-chip platform.

R&D carriers also continue to grow. Shijia Photonics has successively established a number of R&D platforms such as academician workstations, national and local joint engineering laboratories, optoelectronic integration Henan Engineering Laboratory, optoelectronic integration engineering technology research center, etc., undertaken a number of key R&D projects of the Ministry of Science and Technology, and won the single champion of integrated waveguide chips (optical separation products) in the manufacturing industry, with the comprehensive ability of rapid response, higher flexibility and faster product development in the whole process.

"At present, Shijia Photonics has formed six product lines, including PLC optical splitter chips, AWG wavelength division multiplexers, DFB lasers, MPO/MTP connectors, indoor optical cables, and cable polymer materials." The relevant person in charge of Shijia Photon said.

Data is the most intuitive transcript. According to the annual performance report disclosed by Shijia Photonics on February 27, in 2024, Shijia Photonics will achieve operating income of 1.074 billion yuan, an increase of 42.38% year-on-year, setting a new high since the company was established in 2010; the net profit attributable to shareholders of the listed company was 63.7911 million yuan, an increase of 234.17% year-on-year; The net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses was 46.8195 million yuan, an increase of 170.07% year-on-year.

As for the rapid growth of operating income, the report said that it was mainly driven by the demand for AI computing power, and the rapid growth of the data communication market. Shijia Photonics adapts to market demand, continues to invest in R&D and technological innovation, highlights product competitive advantages, and improves customer recognition. AWG series products, DFB series products, MPO related products, indoor optical cables and cable polymer materials all achieved an increase in orders compared with the same period last year.