Changjin Photonics' Sci-Tech Innovation Board IPO approved, questioned on the reasonableness and sustainability of high profit margins

Liu Zhiying, Rui Finance On March 27, according to the Shanghai Stock Exchange, Wuhan Changjin Photonic Technology Co., Ltd. (hereinafter referred to as: Changjin Photonic) (initial public offering) meets the issuance conditions, listing conditions, and information disclosure requirements.

At the listing committee meeting, the Shanghai Stock Exchange required Changjin Photonic to conduct a comparative analysis of the product categories, technical routes, downstream application scenarios, gross profit margins, etc., of its peers in the fiber optic industry during the reporting period, to explain the reasonableness and sustainability of the company’s high gross profit margin.

Based on the market space of the specialty fiber industry, vertical integration of upstream and downstream, orders on hand, customer expansion, technological and product updates, competitive advantages and disadvantages, and trends in product price changes, explain the competitiveness and growth potential of the company’s business.

Changjin Photonic is mainly engaged in the research and development, production, and sales of specialty optical fibers. The company’s main product, rare-earth-doped optical fiber, is an important subcategory of specialty optical fibers, widely used in advanced manufacturing, optical communication, measurement sensing, national defense and military industry, healthcare, scientific research, and other fields.

In 2023, 2024, and 2025, Changjin Photonic’s operating revenue is projected to be 145 million yuan, 192 million yuan, and 247 million yuan, respectively, with net profits of 54.6565 million yuan, 75.7559 million yuan, and 95.6404 million yuan, and main business gross profit margins of 69.31%, 69.13%, and 65.06%, respectively.

From January to March 2026, the company expects to achieve operating revenue of 52 million to 55 million yuan, a year-on-year increase of 16.25% to 22.96%; it expects to achieve net profit attributable to the parent company’s shareholders of 15.56 million to 16.4 million yuan, a year-on-year increase of 2.49% to 8.02%; and it expects to achieve net profit attributable to the parent company’s shareholders after deducting non-recurring gains and losses of 14.56 million to 15.4 million yuan, a year-on-year increase of 4.22% to 10.23%.

Before the IPO, Changhexin directly held 34.42% of the company’s equity, making it the controlling shareholder. The actual controller, Li Jinyan, controls a total of 43.12% of the voting rights through Changhexin, Zhiyuan No.1, Zhiyuan No.2, and a concerted action agreement. The concerted action person of the actual controller is Liu Changbo.

According to the information, Li Jinyan, male, born in 1972, Chinese nationality, no permanent residence abroad, graduated from the Shanghai Institute of Optics and Fine Mechanics, Chinese Academy of Sciences, with a doctoral degree. From August 2001 to June 2005, he served as a senior R&D engineer at FiberHome Technologies Group Co., Ltd.; from July 2005 to October 2008, he served as the R&D department manager at FiberHome Tencar Technologies Co., Ltd.; from November 2008 to present, he has been a professor and doctoral supervisor at the Wuhan National Laboratory for Optoelectronics (renamed Wuhan National Research Center for Optoelectronics in 2017) (will handle departure for entrepreneurship in July 2025); since May 2020, he has been the chairman of the company.

In the past year, Li Jinyan’s salary was 1.33 million yuan.