Guangku Technology Responds to Review Inquiry Letter: Detailed Explanation of Core Issues such as Revenue and Cost Expenses of the Target Assets

Beijing Dehao International Accounting Firm recently issued a special verification opinion on the inquiry letter regarding the review of Zhuhai Guangku Technology Co., Ltd.‘s issuance of shares, convertible bonds, cash payments, and the fundraising of supporting funds. The opinion provides detailed responses to core issues such as the target assets’ revenue, costs and expenses, financial condition, related-party transactions, and goodwill.

The verification opinion shows that the target assets’ operating revenues during the reporting periods were RMB 151.168 million, RMB 508.564 million, and RMB 320.835 million, respectively, showing rapid growth. Among these, sales to the top five customers accounted for 93.77%, 96.97%, and 98.56%, respectively, indicating high customer concentration. The largest customer’s sales share has exceeded 80% for three consecutive years.

Regarding customer concentration, the verification opinion notes that this situation is related to the high industry concentration characteristic of the optical module sector. The main customers of the target company are all leading global optical module enterprises. In the 2024 global optical module market ranking, Customer A holds a 20% market share, ranking first, with a 37% share in the 800G optical module market. The target company has long-term cooperation with its major customers; cooperation with Customer A began in 2012, and with Customers B and C for over eight years, forming stable strategic partnerships.

During the reporting period, the sales amounts and proportions to major customers are as follows:

The inquiry response indicates that the company’s revenue growth is mainly driven by the surge in demand for high-speed optical modules due to AI data center construction. The global optical module market size grew from USD 10.453 billion in 2020 to USD 16.343 billion in 2024, and is expected to exceed USD 43.2 billion by 2030, with a CAGR of 17.59%. The company’s products mainly target the 400G and above high-speed optical modules, which are the core drivers of revenue growth.

In terms of costs and expenses, the main business costs of the company include approximately 48% for raw materials and about 37% for labor costs. In 2024, the main business costs increased by 167.32% compared to 2023, mainly due to a significant increase in sales volume. During the reporting period, the company’s management expense ratio, sales expense ratio, and R&D expense ratio were 3.25%, 0.55%, and 3.71%, respectively, lower than the industry average, mainly because of high customer concentration, simple management structure, and rapid growth phase.

Financial data shows that as of the end of June 2025, the company’s accounts receivable book value was RMB 204.995 million, accounting for 35.74% of total assets, with overdue receivables making up 0.38%, indicating good collection status. The provision for bad debts on accounts receivable is consistent with industry peers, with 5% for receivables within one year, 20% for 1-2 years, 50% for 2-3 years, and 100% for over three years.

Regarding related-party transactions, the company’s purchases from its largest supplier, Fuku Xima, amounted to RMB 10.7806 million, RMB 41.5012 million, and RMB 20.835 million, mainly for raw materials such as MT connectors and MPO pins. The verification opinion considers that the pricing of related-party transactions is fair and does not significantly differ from third-party market prices, having little impact on the company’s performance.

After this transaction, the listed company’s goodwill will reach RMB 1.594 billion, accounting for 30.15% of the total assets and 50.16% of net assets. The company has indicated that if goodwill impairment occurs, it could significantly affect net profit, net assets, and total assets. Assuming a 20% impairment of goodwill, net profit for 2024 would decrease by RMB 183.04 million.

The intermediary agency’s review believes that the company’s revenue growth is sustainable, the high customer concentration aligns with industry characteristics, costs and expenses are reasonable, related-party transaction pricing is fair, and the risk of goodwill impairment has been fully disclosed.

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