Yuanjie Semiconductor Technology Co.,Ltd., the A-share market's new leader whose stock price has surpassed that of Kweichow Moutai, delivered an explosive first-quarter report. The company's Q1 2026 results, disclosed on April 27, show revenue reached 355 million yuan, representing a 320.94% year-over-year increase. Net profit attributable to shareholders surged by 1,153.07% to 179 million yuan, while adjusted net profit rose 1,173.64% to 178 million yuan. The explosive growth in demand for laser chips used in data centers is rapidly translating into financial returns.
The strength of the figures substantially exceeded expectations: the company earned 94% of its full-year 2025 net profit (191 million yuan) in just one quarter. Management attributed the significant performance improvement to increased sales of CW light source products in the data center sector, combined with continuous optimization of the product mix and high gross margin levels.
More notably, this growth does not appear to be a hollow expansion achieved through dilution. From the gross margin structure to positive cash flow, from sustained R&D investment to rapid asset expansion, Yuanjie Tech's quarterly report demonstrates a company transitioning from a "technology firm" to a "scalable profit platform."
**Revenue Structure: Product Upgrades as Core Driver**
Yuanjie Tech's primary business is semiconductor laser chips, particularly light source chips for optical communications. The quarter's 355 million yuan in revenue represents a leap from 84.4 million yuan in the same period last year, driven by a deep shift in the product mix toward high-value data center applications.
The rapid expansion of AI computing infrastructure in data centers has directly fueled explosive demand for optical modules, which subsequently impacts the upstream laser chip segment. As one of the few domestic companies capable of mass-producing light source chips for 800G and even higher rates, Yuanjie Tech is positioned at the core of this industry wave. CW light source products, due to high technical barriers and low substitutability, command significantly higher gross margins than traditional telecom market products. This explains why profit growth (over 1150%) vastly outpaced revenue growth (over 320%). Operating costs were 78.84 million yuan, up approximately 69% year-over-year, but this cost growth was far lower than the 321% revenue increase, with a substantially improved gross margin being the quarter's primary profit engine.
**Expenses: Continued R&D Investment, Sales and Admin Costs Rise with Scale**
R&D expenditure for the quarter reached 20.65 million yuan, a 77.94% increase, indicating the company maintains an aggressive R&D pace even during a high-growth cycle. However, because revenue growth significantly exceeded R&D growth, the R&D-to-revenue ratio decreased to 5.81% from 13.75% a year earlier, a drop of nearly 8 percentage points. This does not signify a reduction in R&D effort but is a natural reflection of scale effects—the company noted increases in share-based payments, employee compensation, material costs, and depreciation.
Sales expenses were 12.72 million yuan (up 145% YoY) and administrative expenses were 18.59 million yuan (up 190% YoY). The growth rates for both expense categories were significantly lower than revenue growth, indicating strong operating leverage from the company's scaled expansion.
Notably, credit impairment losses for the quarter amounted to -8.5768 million yuan, shifting from a positive gain a year ago to a significant loss. Asset impairment losses also reached -3.979 million yuan. This is closely related to the substantial expansion of accounts receivable from 264 million yuan to 410 million yuan—explosive business growth brings revenue but also creates a larger exposure to receivables risk, warranting ongoing attention to bad debt potential.
**Assets and Liabilities: Heavy Asset Investment Accelerates, Monetary Funds Contract**
The balance sheet shows a distinct characteristic: the company is in a heavy-asset expansion cycle. Fixed assets increased from 672 million yuan to 820 million yuan, construction in progress stood at 138 million yuan, and total non-current assets expanded from 1.315 billion yuan to 1.614 billion yuan. Correspondingly, net cash outflow from investing activities reached 329 million yuan for the quarter, of which 297 million yuan was spent on acquiring and constructing fixed assets and intangible assets—a more than five-fold increase year-over-year, signaling a significantly accelerated pace of capacity expansion.
Monetary funds decreased from 822 million yuan at the start of the year to 567 million yuan. The ending balance of cash and cash equivalents was 521 million yuan, a reduction of 275 million yuan from the beginning of the period. Large-scale capital expenditure was the primary reason for the contraction in monetary funds, with the company supplementing liquidity through 19.8 million yuan in short-term borrowing.
Investments in other equity instruments increased by 20 million yuan to 51.29 million yuan. Other non-current assets grew from 202 million yuan to 372 million yuan, and prepayments jumped from 8.36 million yuan to 20.59 million yuan, reflecting the company's advanced preparations for raw material procurement and strategic resource reserves.
**Currency Fluctuations Erode Comprehensive Income; Yuanjie Tech Accelerates H-Share Listing Plans**
Alongside rapid earnings growth, Yuanjie Tech also faces some financial pressures. The after-tax net amount of other comprehensive income for the period was -157 million yuan, primarily stemming from foreign currency translation differences, which dragged down the total comprehensive income, which settled at 164 million yuan.
Furthermore, the company is advancing its plan for an H-share listing in Hong Kong, aiming to establish a dual capital platform structure with "A+H" shares. Against the backdrop of continuously expanding demand for AI computing infrastructure, market focus on the company's capacity fulfillment capability and subsequent quarterly performance is expected to intensify.
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