Preface
In 2023, a Chinese technology company broke through the United States' blockade with its "unique technology," achieving an annual revenue of 10.7 billion yuan.
Once this news was released, it shocked both domestic and international audiences, and everyone was curious about what "unique skill" this company relied on to stand firm.
So, who is this company? And how did they harvest this 10.7 billion yuan?
Reversal of Technological Status
In 2023, a Chinese company became a global sensation with its extremely high annual revenue. According to the data released by the company, we can see that their revenue for the past year reached 10.7 billion yuan.
In fact, the revenue of a normal company is not enough to cause such a stir. It's important to know that the revenue of many listed companies is also in the billions.
However, this company is quite different; their revenue mainly comes from abroad, especially the United States, which "contributes" the most.So, why is this company so impressive?
This company is Zhongji Xuchuang, located in Suzhou, China. Their main business is the research and development, design, and production of equipment for motor manufacturing, among which optical modules are one of them.
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It should be noted that before Zhongji Xuchuang's "explosive" development in optical module research, it was always a foreign patent. China's independently developed optical module technology was not mature, and its status was similar to that of chips in the past.
However, the optical module developed by Zhongji Xuchuang this time is not only a major breakthrough in China's electronic technology, but also its technical performance is far superior to that of foreign countries.
Taking last year's data as an example, the global market size of optical modules has reached more than 9.9 billion US dollars. Moreover, it is expected to grow by more than 10% annually in the next few years.
However, the technology companies driving this data, their "merit" comes from Zhongji Xuchuang. Even the United States, which has the world's leading electronic industry kingdom, is out of reach.
Last year, Zhongji Xuchuang's operating income reached 10.7 billion US dollars, a year-on-year increase of 11.23%, among which the net profit was as high as 2.181 billion yuan, a year-on-year increase of 78.19%.
This data is quite "terrifying", which means that Zhongji Xuchuang leads the optical module to a leading position in the world.
At the same time, it is not difficult to see that the global market's demand for optical modules is very high.
From the data announced by Zhongji Xuchuang last year, they have attracted the favor of nearly 200 institutions and investors, including Nvidia.NVIDIA, as the highest-valued chipmaker in the United States, is also very interested in the optical modules developed by InnoLight Technology Corporation, as they have a significant demand for these modules as well.
Looking back, due to the "chip war," China's technology was once in a passive position, and now the "two-level reversal" can be considered as a moment for us to "hold our heads high."
Actually, when I first saw this news, compared to shock, I was more curious.
After all, Western countries have always been very strict with China in the field of chips and related areas. Why can InnoLight Technology Corporation break through the encirclement and lead the world?
"Dark Horse" InnoLight Technology Corporation
In 2019, the visionary InnoLight Technology Corporation spared no expense in acquiring 100% of the equity of Suzhou Chuangxu for 3.1 billion yuan, becoming its true owner.
Since then, Suzhou Chuangxu, along with its core optical module technology, joined InnoLight Technology Corporation and became the "main force" of the R&D department.
It has to be said that InnoLight Technology Corporation is a very visionary company.
After the large investment in acquiring Suzhou Chuangxu, they "invested heavily" again, mainly focusing on the development of optical modules. InnoLight Technology Corporation stated that they "must develop world-leading technology."
With a large concentration of human and material resources and the gathering of various talents, they finally developed optical modules with a unique technological core, advancing China's position in the field of technology by more than one step.The current international situation is unstable, and the throat of Chinese technology has been exposed to the hands of other countries for a long time. Only through independent research and development and continuous innovation can we protect ourselves while competing with others.
Although Zhongji Xu Chuang is now in the limelight, they have also suffered countless failures and sanctions, which have led to the inability of our technological development to move forward.
According to the United States' "Export Administration Regulations" and "Foreign Investment Risk Assessment Framework" and other regulations, the United States will impose investment restrictions and sanctions based on the strength and development of the other country.
Electronic components such as optical modules and chips have always been on the United States' sanctions list. While protecting their own technology, they are also afraid of being surpassed by other countries.
Therefore, China can only rely on the initial "knockoff products" for research and development.
Many people think that "Made in China" is actually a copy of foreign products, but when the real "Made in China" is released, only the developers can understand the hardships behind it.
Nowadays, Zhongji Xu Chuang can achieve such excellent results, which is inseparable from the joint efforts of all developers behind the scenes. Fortunately, their efforts have brought great rewards.
Starting from 2023, the stock of Zhongji Xu Chuang has been soaring all the way, and the red color in full view has given stock traders hope for "potential stocks."
This year, the stock price of Zhongji Xu Chuang is still high, and last month it even reached a high price of 186.08 yuan per share.
In less than a year, this "potential stock" has become a "quality stock," which is also very gratifying.However, what exactly is an optical module? What charm does it have that could make the proud United States even humble themselves to seek cooperation?
The "Tiny" Optical Module
An optical module is an optoelectronic device that performs the conversion between electrical and optical signals. In simple terms, its function is to convert electrical signals into optical signals at the transmitting end, which are then transmitted through optical fibers, and at the receiving end, the optical signals are converted back into electrical signals.
Despite the optical module being a very small component, its role is significant, otherwise, countries would not be competing to cooperate with Zhongchuang.
Where there are optical signals, simply plug (or solder) this conversion device, the optical module, onto the equipment, and it can be used. Its applications are widespread.
Devices such as switches, servers, optical transceivers, routers, network cards, and even base stations all require the use of optical modules.
For example, in the current vigorous promotion of 5G construction, as the era of technology continues to develop and progress, our lives have gradually upgraded from 2G to 3G, 4G, and now to 5G.
More and more devices and daily construction cannot be separated from 5G, and with it comes the establishment of more and more base stations.
It should be known that the cost required for the construction of a base station is quite substantial, and the investment in the construction of optical modules is far from less than the investment in base stations.
In 5G construction, there are two "representatives" that are the most time-consuming and costly: one is base station construction, and the other is optical transport networks, in which optical modules are applied.The 5G bearer network achieves the fronthaul, midhaul, and backhaul functions of 5G services through the metropolitan area network and the backbone network. The interconnection between devices at various layers primarily relies on the mutual connection of optical fibers and optical modules.
It can be seen that optical modules have a significant presence and irreplaceability throughout the entire 5G system.
Before InnoLight Technology developed its own optical module technology, the technology had been monopolized by the United States, making it very difficult for China to break through the blockade.
Therefore, InnoLight Technology had the idea of "if we do it, we must do it the best," which eventually led to the current achievements.
However, after achieving "short-term success," InnoLight Technology did not relax but instead continued to develop with renewed vigor.
From breaking through 40G initially to mass-producing 400G/800G products now, InnoLight Technology has made efforts a thousand or ten thousand times greater.
After all, such achievements are also very appealing to foreign countries, and they are also constantly trying to surpass us, but InnoLight Technology will not give them the opportunity.
So, what is the current state of China's overall electronic technology development?
The Future of Electronic TechnologySince the inception of electronics, China's acuity in the field of electronic technology seemed to be somewhat slower, due to stagnation in various aspects, our core technologies have always been prone to dependence on the United States, thus subject to sanctions imposed by them.
Looking back at the time of the "chip war," although China's development was relatively backward, it never stopped the pace of independent research and development.
It was not until Huawei broke through the blockade imposed by the United States with its own strength that China gained a foothold in the chip industry.
However, this is still not enough. The development of electronic technology will simultaneously lead to the continuous emergence of various innovative technologies.
Constantly chasing after other countries is not a sustainable strategy; only by standing shoulder to shoulder with them, or even surpassing our competitors, can we firmly establish our position.
Zhongji Xuchuang has taken the lead in the field of optical modules, indeed making an immortal contribution to China's electronic technology, while also demonstrating our strength to other countries.
Nowadays, the United States' ability for technological innovation has weakened significantly compared to the past. They were once the leaders guiding global technology to its peak, but now, the status of the United States as "the leader" is precarious.
Take China's current power transmission system, for example, it is already ranked first in the world. Additionally, in areas such as new energy, infrastructure projects, and industrial automation, we have already created a considerable gap with the United States.
Especially in the field of new energy vehicles, China's new energy technology has taken a commanding lead, becoming the world's number one. The ubiquitous new energy vehicles in the country are a testament to the maturity of our energy technology.
The reason we have achieved the current results is inseparable from our "obsession" with independent research and development. Innovation has always been our pursuit, and it is not just a slogan but a label for new products.Believe that in the future, China's technology will continue to be updated and new concepts will be proposed. Our purpose is not to compare with other countries, but to better protect ourselves and become stronger.
Conclusion
In recent years, more and more Chinese "first" independently developed products have appeared in the public's view, and these achievements are showing the label of progress to the world.
Compared with laziness, we are more afraid of backward thinking. Only by continuously innovating can we better open the doors to a new world.
Believe that in the future, Zhongji Xu Chuang Company can bring us better technology, and there will be more companies like Zhongji Xu Chuang Company that shine brightly.