[Key Highlights](index=1&type=section&id=Key%20Highlights) This section provides an overview of Tengjing Technology's strong financial performance in Q3 2025 and year-to-date, highlighting significant revenue and profit growth, improved cash flow, and increased R&D investment [Key Financial Data](index=1&type=section&id=Key%20Financial%20Data) Tengjing Technology demonstrated strong financial performance in Q3 2025 and year-to-date, with significant growth in operating revenue and total profit, and a substantial increase in net operating cash flow, reflecting business expansion and robust collections, alongside sustained R&D investment [Key Accounting Data and Financial Indicators](index=1&type=section&id=Key%20Accounting%20Data%20and%20Financial%20Indicators) This section presents a detailed overview of the company's key financial metrics and indicators for the current reporting period and year-to-date, showing significant growth in revenue, profit, and R&D investment Key Accounting Data and Financial Indicators | Item | Current Period (RMB) | YoY Change (%) | Year-to-Date (RMB) | YoY Change (YTD, %) | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 162,253,874.81 | 34.83 | 425,131,074.76 | 28.11 | | Total Profit | 32,103,763.66 | 41.49 | 74,181,286.67 | 29.47 | | Net Profit Attributable to Parent Company Shareholders | 27,213,666.02 | 20.11 | 63,802,495.35 | 15.00 | | Net Profit Attributable to Parent Company Shareholders (Excluding Non-recurring Gains and Losses) | 26,646,645.53 | 19.52 | 61,271,390.30 | 14.96 | | Net Cash Flow from Operating Activities | Not Applicable | Not Applicable | 94,598,265.40 | 120.76 | | Basic Earnings Per Share (RMB/share) | 0.21 | 16.67 | 0.50 | 16.28 | | Diluted Earnings Per Share (RMB/share) | 0.21 | 16.67 | 0.50 | 16.28 | | Weighted Average Return on Net Assets (%) | 2.86 | Increase of 0.41 percentage points | 6.78 | Increase of 0.75 percentage points | | Total R&D Investment | 17,071,445.72 | 54.23 | 46,179,112.13 | 38.52 | | R&D Investment as % of Operating Revenue | 10.52 | Increase of 1.32 percentage points | 10.86 | Increase of 0.81 percentage points | | **End of Current Period** | | | **End of Prior Year** | **Change from Prior Year-End (%)** | | Total Assets | 1,409,418,551.70 | | 1,299,206,049.14 | 8.48 | | Total Equity Attributable to Parent Company Shareholders | 965,764,614.12 | | 921,357,359.27 | 4.82 | [Non-recurring Gains and Losses Items and Amounts](index=2&type=section&id=Non-recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) This section details the specific items and corresponding amounts of non-recurring gains and losses for both the current period and year-to-date, impacting the company's net profit Non-recurring Gains and Losses Items and Amounts | Non-recurring Gains and Losses Item | Current Period Amount (RMB) | Year-to-Date Amount (RMB) | | :--- | :--- | :--- | | Gains or losses from disposal of non-current assets | 8,717.19 | -391,363.76 | | Government grants recognized in current profit or loss | 556,720.93 | 2,884,347.67 | | Gains or losses from changes in fair value and from disposal of financial assets and liabilities | 65,999.38 | 842,057.69 | | Gains or losses from entrusted investments or asset management | 29,526.05 | 477,466.52 | | Other non-operating income and expenses | 23,225.35 | 127,514.40 | | Less: Income tax impact | 102,927.84 | 695,972.40 | | Non-controlling interests impact (after tax) | 14,240.57 | 712,945.07 | | **Total** | **567,020.49** | **2,531,105.05** | [Changes and Reasons for Key Accounting Data and Financial Indicators](index=3&type=section&id=Changes%20and%20Reasons%20for%20Key%20Accounting%20Data%20and%20Financial%20Indicators) This section explains the significant changes in key accounting data and financial indicators, attributing them to factors such as market demand, product optimization, and strategic R&D investments - Operating revenue increased by **34.83%** in the current period, primarily driven by growth in the high-speed optical communication components market due to AI computing demand, high growth in advanced optical module business in emerging applications like semiconductor equipment, and a recovery in demand from industrial laser customers[9](index=9&type=chunk)[10](index=10&type=chunk) - Total profit increased by **41.49%** in the current period, mainly due to operating revenue growth, optimized product structure, and improved gross profit margin[10](index=10&type=chunk) - Net cash flow from operating activities increased by **120.76%** year-to-date, primarily due to increased operating revenue and strong collections[10](index=10&type=chunk) - Total R&D investment increased by **54.23%** in the current period and **38.52%** year-to-date, mainly due to the company's proactive technological research and forward-looking strategic布局 in the optoelectronic industry, aligning with trends in integrated high-speed optical communication technology, domestic substitution and independent control of semiconductor equipment components, and accelerated adoption of AR glasses near-eye display technology[10](index=10&type=chunk) [Shareholder Information](index=4&type=section&id=Shareholder%20Information) This section provides details on the company's shareholder structure, including the total number of common shareholders and the holdings of the top ten shareholders, highlighting the controlling shareholder's stake [Total Number of Common Shareholders and Top Ten Shareholders' Holdings](index=4&type=section&id=Total%20Number%20of%20Common%20Shareholders%20and%20Top%20Ten%20Shareholders'%20Holdings) As of the end of the reporting period, the company had **16,846** common shareholders, with stable holdings among the top ten, and actual controller Yu Hongrui collectively controlled **25.53%** of the company's shares through direct and indirect means - The total number of common shareholders at the end of the reporting period was **16,846**[12](index=12&type=chunk) Top Ten Shareholders' Holdings | Shareholder Name | Shareholder Type | Number of Shares Held | Shareholding Ratio (%) | | :--- | :--- | :--- | :--- | | Yu Hongrui | Domestic Individual | 23,660,000 | 18.29 | | Wang Qiping | Domestic Individual | 11,900,000 | 9.20 | | Yancheng Guangyuan Investment Partnership (Limited Partnership) | Other | 7,742,635 | 5.99 | | Jin Tianbing | Domestic Individual | 4,900,000 | 3.79 | | Liu Wei | Domestic Individual | 3,950,000 | 3.05 | | Fujian Huaxing Venture Capital Co., Ltd. | State-owned Legal Person | 2,540,349 | 1.96 | | Fujian Longyao Investment Co., Ltd. | Domestic Non-state-owned Legal Person | 2,460,236 | 1.90 | | Hong Kong Securities Clearing Company Limited | Other | 2,163,428 | 1.67 | | Zhang Qing | Domestic Individual | 1,699,856 | 1.31 | | Yancheng Qili Investment Partnership (Limited Partnership) | Other | 1,620,365 | 1.25 | - Yu Hongrui directly holds **18.29%** of the company's shares and, through Yancheng Guangyuan Investment Partnership (Limited Partnership) and Yancheng Qili Investment Partnership (Limited Partnership), collectively controls **25.53%** of the company's shares, serving as the controlling shareholder and actual controller[13](index=13&type=chunk) [Other Reminders](index=6&type=section&id=Other%20Reminders) This section confirms the absence of other significant operational information requiring investor attention during the reporting period [Other Important Information](index=6&type=section&id=Other%20Important%20Information) During the reporting period, the company had no other significant operational information requiring special attention from investors - During the reporting period, the company had no other significant operational information requiring special attention from investors[14](index=14&type=chunk) [Quarterly Financial Statements](index=6&type=section&id=Quarterly%20Financial%20Statements) This section presents the unaudited consolidated financial statements for the quarter, including the balance sheet, income statement, and cash flow statement, reflecting the company's financial position and performance [Type of Audit Opinion](index=6&type=section&id=Type%20of%20Audit%20Opinion) The financial statements for this quarter are unaudited - The financial statements for this quarter are unaudited[14](index=14&type=chunk) [Consolidated Balance Sheet](index=6&type=section&id=Consolidated%20Balance%20Sheet) As of September 30, 2025, the company's total assets reached **RMB 1.409 billion**, an **8.48%** increase from the prior year-end, with significant growth in non-current assets, particularly fixed assets and construction in progress, reflecting investments in production capacity and infrastructure Consolidated Balance Sheet Key Data (As of September 30, 2025 vs December 31, 2024) | Item | September 30, 2025 (RMB) | December 31, 2024 (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Total Current Assets | 518,591,438.71 | 598,784,808.72 | -13.40 | | Total Non-current Assets | 890,827,112.99 | 700,421,240.42 | 27.18 | | Total Assets | 1,409,418,551.70 | 1,299,206,049.14 | 8.48 | | **Liabilities** | | | | | Total Current Liabilities | 282,200,591.03 | 252,620,711.15 | 11.79 | | Total Non-current Liabilities | 110,585,891.28 | 76,549,500.81 | 44.46 | | Total Liabilities | 392,786,482.31 | 329,170,211.96 | 19.33 | | **Shareholders' Equity** | | | | | Total Equity Attributable to Parent Company Shareholders | 965,764,614.12 | 921,357,359.27 | 4.82 | | Non-controlling Interests | 50,867,455.27 | 48,678,477.91 | 4.50 | | Total Shareholders' Equity | 1,016,632,069.39 | 970,035,837.18 | 4.80 | - Fixed assets increased from **RMB 443 million** at the end of 2024 to **RMB 531 million** as of September 30, 2025, while construction in progress grew from **RMB 10.78 million** to **RMB 72.52 million**, indicating a significant increase in the company's investment in production facilities and project construction[16](index=16&type=chunk) [Consolidated Income Statement](index=8&type=section&id=Consolidated%20Income%20Statement) In the first three quarters of 2025, the company's total operating revenue reached **RMB 425 million**, a **28.11%** year-on-year increase, with net profit attributable to parent company shareholders at **RMB 63.80 million**, up **15.00%**, reflecting significant R&D expense growth and sustained technological investment Consolidated Income Statement Key Data (First Three Quarters of 2025 vs First Three Quarters of 2024) | Item | First Three Quarters of 2025 (RMB) | First Three Quarters of 2024 (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 425,131,074.76 | 331,848,898.44 | 28.11 | | Total Operating Costs | 357,501,456.46 | 277,533,414.75 | 28.81 | | Operating Profit | 74,783,439.10 | 59,130,905.16 | 26.47 | | Total Profit | 74,181,286.67 | 57,296,077.64 | 29.47 | | Net Profit | 66,167,880.89 | 55,074,128.77 | 20.14 | | Net Profit Attributable to Parent Company Shareholders | 63,802,495.35 | 55,481,375.97 | 15.00 | | R&D Expenses | 46,179,112.13 | 33,336,957.73 | 38.52 | | Basic Earnings Per Share (RMB/share) | 0.50 | 0.43 | 16.28 | - Income tax expense significantly increased from **RMB 2.22 million** in the first three quarters of 2024 to **RMB 8.01 million** in the first three quarters of 2025, a **260.68%** increase[21](index=21&type=chunk) [Consolidated Cash Flow Statement](index=11&type=section&id=Consolidated%20Cash%20Flow%20Statement) In the first three quarters of 2025, net cash flow from operating activities was **RMB 94.60 million**, a **120.76%** year-on-year increase due to strong collections; net cash outflow from investing activities was **RMB 90.01 million**, primarily for acquiring fixed, intangible, and other long-term assets; and net cash outflow from financing activities was **RMB 32.31 million**, mainly for debt repayment and dividend distribution Consolidated Cash Flow Statement Key Data (First Three Quarters of 2025 vs First Three Quarters of 2024) | Item | First Three Quarters of 2025 (RMB) | First Three Quarters of 2024 (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 94,598,265.40 | 42,850,886.80 | 120.76 | | Net Cash Flow from Investing Activities | -90,008,866.55 | -139,745,409.07 | 35.60 (Decrease in outflow) | | Net Cash Flow from Financing Activities | -32,313,847.10 | 59,854,239.19 | -154.00 (Shift from inflow to outflow) | | Net Increase in Cash and Cash Equivalents | -28,568,526.30 | -37,017,259.23 | 22.82 (Decrease in net outflow) | - Cash paid for the acquisition of fixed assets, intangible assets, and other long-term assets significantly increased from **RMB 64.30 million** in the first three quarters of 2024 to **RMB 193 million** in the first three quarters of 2025, indicating a substantial increase in the company's capital expenditures[24](index=24&type=chunk)

Core Viewpoint - Tengjing Technology (688195.SH) reported a significant increase in revenue and net profit for Q3 2025, driven by the demand for AI computing power and growth in the optical communication components market [1] Financial Performance - The company's operating revenue for Q3 2025 reached 162 million yuan, representing a year-on-year growth of 34.83% [1] - The net profit attributable to shareholders was 27.21 million yuan, showing a year-on-year increase of 20.11% [1] Market Drivers - The growth in revenue is primarily attributed to the increasing demand for AI computing power, which has positively impacted the optical communication sector [1] - The company has been actively expanding its business and product delivery in the optical communication field, contributing to revenue growth [1] - High growth in the high-end optical module business for semiconductor equipment and a recovery in customer demand in the industrial laser sector also supported revenue increases [1]

Core Viewpoint - Tengjing Technology (688195.SH) reported a strong financial performance for the first three quarters, indicating growth in both revenue and net profit [1] Financial Performance - The company achieved an operating revenue of 425 million yuan, representing a year-on-year increase of 28.11% [1] - The net profit attributable to shareholders reached 63.80 million yuan, reflecting a year-on-year growth of 15.00% [1] - The net profit attributable to shareholders after deducting non-recurring gains and losses was 61.27 million yuan, with a year-on-year increase of 14.96% [1] - Basic earnings per share stood at 0.50 yuan [1]

腾景科技公告，第三季度营收为1.62亿元，同比增长34.83%；净利润为2721.37万元，同比增长 20.11%。前三季度营收为4.25亿元，同比增长28.11%；净利润为6380.25万元，同比增长15.00%。 ...

Summary of AI Industry Conference Call Industry Overview - The AI chip demand is surging, driving the development of the industry chain, with major players like Meta and Google accelerating their ASIC chip deployments and repeatedly raising their demand forecasts for 2026, particularly with Google's V7 chip set to fully adopt liquid cooling technology [1][2] Key Points and Arguments - **Liquid Cooling Technology**: - Liquid cooling has become a standard for AI giants, with Google planning to fully adopt it by 2026 and Meta already implementing it in their self-developed chips [1][3] - Infinet is collaborating with Google to develop a universal CDU suitable for various ASIC chips, indicating a trend towards silent liquid cooling in the future [1][4] - **High-Speed Optical Modules**: - The evolution towards 1.6T optical modules is evident, with Google's V7 chip primarily utilizing this technology, benefiting leading companies like Zhongji Xuchuang and Xinyi Sheng [1][5] - The demand for CW light sources is also increasing, positively impacting companies like Yuanjie Technology [1][5] - **OCS Switches**: - Google's OCS switches are expected to achieve over 50% growth next year, benefiting manufacturers like Dekoli and Guangku Technology, as well as component suppliers like Tengjing Technology and Juguang Technology [1][6] - **Competitive Advantages**: - Infinet stands out in the global AI industry chain due to its comprehensive solutions and delivery capabilities, having secured clients like Intel, Meta, Google, and OpenAI [1][7][8] - Zhongji Xuchuang and Xinyi Sheng are recognized as leaders in the high-speed optical module sector, while Yuanjie Technology is a key supplier in the CW light source market [1][8] Additional Insights - **Market Dynamics**: - The global AI industry chain is accelerating, particularly in overseas markets, with OpenAI collaborating with major chip companies like Broadcom, AMD, and NVIDIA, creating a significant siphoning effect [2] - The domestic AI computing card market is currently facing a supply shortage, but improvements are expected in 2026, with major domestic players like Alibaba, ByteDance, and Tencent likely to increase their AI investments significantly [11] - **Emerging Technologies**: - The supernode technology is anticipated to explode in 2026, presenting opportunities across various sectors, including chips, machine manufacturing, optical modules, liquid cooling, copper connections, and server power supplies [12][13] - **AIDC Sector Outlook**: - The AIDC sector, which includes data center construction and power systems, is expected to see improved bidding progress as domestic chip supply increases in 2026, benefiting companies in cooling, power supply, and data center management [14] - **Market Volatility**: - Short-term market fluctuations due to tariff disturbances are not expected to alter the long-term growth trajectory of the AI industry, with upcoming catalysts likely to positively impact the entire industry chain [15]

Core Insights - The photolithography concept sector saw a rise of 3.20%, ranking third among concept sectors, with 32 stocks increasing in value, including New Lai Materials which hit the daily limit up of 20% [1] - The leading gainers in the sector included Jiangfeng Electronics, Fuchuang Precision, and Guolin Technology, which rose by 14.54%, 13.50%, and 13.39% respectively [1] - Conversely, the biggest losers were Lante Optics, Dazhu Laser, and Tengjing Technology, which fell by 5.01%, 3.72%, and 3.00% respectively [1] Market Performance - The top-performing concept sectors today included Rare Earth Permanent Magnets with a gain of 6.92% and Military Equipment Restructuring Concept with a gain of 3.51%, while the photolithography sector gained 3.20% [2] - The sector attracted a net inflow of 0.81 billion yuan from main funds, with 19 stocks receiving net inflows, and 5 stocks exceeding 50 million yuan in net inflows [2] - The stock with the highest net inflow was Kai Meite Gas, which saw a net inflow of 2.52 billion yuan, followed by Fuchuang Precision and Jiangfeng Electronics with net inflows of 1.36 billion yuan and 999.47 million yuan respectively [2] Fund Flow Analysis - The stocks with the highest net inflow ratios included Fuchuang Precision, Kai Meite Gas, and Nanjing Chemical Fiber, with net inflow ratios of 9.70%, 9.58%, and 8.95% respectively [3] - The photolithography concept fund flow rankings showed that Kai Meite Gas had a daily increase of 9.98% with a turnover rate of 14.09%, while Fuchuang Precision increased by 13.50% with a turnover rate of 5.27% [3][4] - Other notable performers included Jiangfeng Electronics with a 10.02% increase and a turnover rate of 11.55%, and Wavelength Optoelectronics with a 12.12% increase and a turnover rate of 41.04% [3][4]

Core Viewpoint - The precision optical components are becoming essential for various advanced technologies, including AI, quantum computing, and optical communication, with companies like Tengjing Technology leading the domestic substitution trend in China [1][3]. Industry Overview - The optical components are critical in modern technology, playing an irreplaceable role in communication, AI, high-end equipment, and advanced manufacturing [3]. - China holds a significant position in the global optical communication market, with leading companies like Huawei and ZTE, but still relies on imports for certain high-speed optical chips and specialized materials [3]. - The development of information infrastructure is crucial for national security and economic transformation, emphasizing the need for self-sufficiency in key technologies [3]. Company Strategy - Tengjing Technology is focusing on the rapid development of high-speed optical interconnection technologies driven by AI computing demands, expanding its product and technology layout in optical communication [4]. - The company is addressing the challenges of domestic substitution in semiconductor equipment, particularly in photolithography machines, which are critical for chip manufacturing [4][5]. - Tengjing Technology is accelerating technological breakthroughs and product applications in the semiconductor and optical communication sectors, providing key components and achieving significant progress [5]. Technological Advancements - The company has established six core technology platforms, including optical films, precision optics, and fiber devices, which form a comprehensive technical system for manufacturing optical components [7][8]. - The complexity of manufacturing processes and the need for high reliability create significant entry barriers for new competitors, requiring extensive R&D and production experience [8]. - Continuous R&D and talent development are crucial for the company's innovation and ability to meet the evolving demands of the optical electronics industry [8][9]. Future Outlook - R&D innovation is a direct driver of business expansion and profitability in the optical electronics sector, with a focus on high-end component domestic substitution and technological advancements [9].

Core Viewpoint - The article emphasizes the significant role of precision optical components in modern technology, particularly in quantum computing, AI, and optical communication, highlighting the strategic importance of domestic production in China to reduce reliance on foreign technology and enhance national security [1][4]. Group 1: Industry Trends - The Chinese optoelectronic industry is experiencing a strong trend of domestic substitution, with significant improvements in technology levels and international competitiveness [1][4]. - China holds a leading position in the global optical communication market, with major companies like Huawei and ZTE becoming industry leaders, although some components still rely on imports [4][5]. Group 2: Company Positioning - Tengjing Technology, founded in 2013, is positioned as a key player in promoting domestic substitution in high-end optical components for optical communication and semiconductor equipment [1][4]. - The company is focusing on the rapid development of high-speed optical interconnection technologies driven by AI computing demands, expanding its product and technology layout in this area [5][6]. Group 3: Technological Advancements - Tengjing Technology has developed six core technology platforms, including optical film, precision optics, and fiber optic devices, which form a vertically integrated capability for manufacturing optical components [8][9]. - The company emphasizes the complexity of manufacturing processes and the need for extensive R&D investment to keep pace with rapid technological advancements in the industry [8][9]. Group 4: Challenges and Opportunities - The optical components for semiconductor equipment, particularly in photolithography machines, represent a significant challenge for domestic production, as they are currently dominated by foreign companies [6][8]. - The company is actively addressing these challenges by advancing technology and product applications, contributing to the overall domestic substitution process in the semiconductor and optical communication sectors [6][10].

Core Viewpoint - Tengjing Technology Co., Ltd. is set to hold a Q3 2025 earnings presentation on October 21, 2025, to discuss its operational results and financial status with investors [1][2]. Group 1: Meeting Details - The earnings presentation will take place on October 21, 2025, from 13:00 to 14:00 [2][5]. - The venue for the meeting is the Shanghai Stock Exchange Roadshow Center, accessible online [2][4]. - The meeting will be conducted in an interactive online format, allowing for real-time communication with investors [3][4]. Group 2: Participation Information - Investors can participate in the meeting by logging into the Shanghai Stock Exchange Roadshow Center on the scheduled date [5][6]. - A pre-question submission period is available from October 13 to October 20, 2025, where investors can submit questions via the Roadshow Center website or through the company's email [2][5][6]. - The company will address commonly asked questions during the presentation [3][6]. Group 3: Company Representatives - Key representatives attending the meeting include Chairman and General Manager Yu Hongrui, Vice General Manager and Financial Officer Liu Yi, and Independent Director Luo Miaocheng [4].

Core Insights - The optical and optoelectronic sector experienced a decline of 2.68% on October 10, with Wanrun Technology leading the drop [1] - The Shanghai Composite Index closed at 3897.03, down 0.94%, while the Shenzhen Component Index closed at 13355.42, down 2.7% [1] Stock Performance - Wanrun Technology (002654) saw a significant decline of 9.11%, closing at 14.56, with a trading volume of 1.22 million shares and a transaction value of 1.8 billion [2] - Other notable decliners included Tengjing Technology (688195) down 8.42% and Changyang Technology (6628889) down 7.45% [2] - Conversely, Deep Textile A (000045) increased by 7.14%, closing at 13.50, with a trading volume of 410,600 shares and a transaction value of 54 million [1] Capital Flow - The optical and optoelectronic sector experienced a net outflow of 1.911 billion from institutional investors, while retail investors saw a net inflow of 538 million [2] - Notable stocks with significant capital inflows included BOE Technology Group (000725) with a net inflow of 127 million from institutional investors [3] - In contrast, Huacan Optoelectronics (300323) faced a net outflow of 77.5 million from retail investors [3]