Liante Technology is exploring cloud service manufacturer customers, and the capacity of the new high-speed optical module project will reach 1.79 million

Recently, Wuhan Liante Technology Co., Ltd. released a record sheet of investor relations activities, explaining the situation of Zhang Jian, the chairman of the company, who was investigated by investment institutions from November 14 to 15.
Founded in 2011, Liante Technology has focused on the R&D, production and sales of optical communication transceiver modules since its establishment, adhered to the development strategy of independent innovation and differentiated competition, mastered a series of key technologies in optoelectronic chip integration, optical device and optical module design and production process, and formed a relatively complete optical module industry chain.
The capacity of high-speed optical modules will reach 1.79 million after the completion of the company’s fund-raising and investment projects
The main business of Liante Technology is divided into telecommunication field and data communication field by application field. Taking the data of 2021 as an example, the telecommunication field and data communication field account for 53.12% and 46.88% of the main business income respectively. According to the rate, it can be subdivided into below 10G, 10G and above. In 2021, 10G and above will account for 88.18% of the main business income.
Among the company’s 10G and above products, 10G to 100G accounted for 66.21% of the main business income, and 100G accounted for 21.28% of the main business income. The revenue of products with the rate of 100G and above increased rapidly year on year.
In the first three quarters of 2022, the company’s cumulative revenue was 617 million yuan, an increase of 27.18% over the same period last year; The net profit attributable to shareholders of listed companies was 88.85 million yuan, up 27.79% over the same period of the previous year. The main reason is that the sales of the company’s high-speed products increased year on year, and some new products, such as 100G single-channel products, also began to form sales, with rapid sales growth.
The current capacity of the company is about 3.2 million optical modules per year. The new investment project was officially started in June this year, and is currently in an orderly process. After the completion of the project, it is expected to increase the capacity of 1.79 million high-speed optical modules. In addition, the company also plans to purchase the land and housing construction and manufacturing center project in Malaysia. After the completion of the project, it is expected to add 1.1176 million optical module capacity annually.
The company has a high proportion of overseas revenue and is actively exploring cloud service provider customers
In terms of business, Liante Technology currently accounts for a relatively high proportion of overseas revenue. The company’s customer base is mainly concentrated in domestic and foreign telecom and network equipment manufacturers, such as Nokia and Arista. The company is also actively exploring cloud service providers, striving to break through 1-2 American cloud service providers in 2023.
At present, the company mainly supplies Nokia with products in the wireless field, and the product rate is mainly concentrated in 10G and 25G. In this product field, we are the main supplier of Nokia. Next, the company will expand its business in other fields, such as transmission business.
As for Arista, another major customer, the company mainly provides 40G/100G optical modules, including single-mode, multimode, four-channel and single-channel products, of which 400G products are expected to be on the market in 2023.
Liante Technology said that the company will also expand business cooperation with Ericsson, ZTE and Xinhua, and develop more new customers based on optical data transmission. At present, the cooperation products are mainly applied in the fields of telecommunications and digital communication. The strategy for the field of digital communication is to seize the rhythm of the market, follow up the iterative process of the products, and rapidly industrialize the products of 400G and 800G optical modules.
In addition, Liante Technology is also actively exploring the domestic market. At present, the company has completed price negotiations with major strategic customers, and has locked in the share and orders of next year as expected, which will be gradually released.
The company’s three 800G optical module solutions are in the stage of small batch development and production
According to statistics, China’s wavelength division multiplexing optical module market has developed steadily, with the market scale increasing from 4.62 billion yuan in 2015 to 7.75 billion yuan in 2020, and is expected to reach 11.98 billion yuan in 2024; Among the local wavelength division multiplexing optical module manufacturers in China, the company ranks second according to the cumulative revenue scale from 2018 to 2020, with a market share of nearly 3%.
Wavelength division multiplexing optical modules are mostly used in backbone networks, metropolitan area networks, and 4G/5G wireless networks. With the application of 5G, the requirements for the density of optical modules are higher, and the requirements for power consumption are gradually higher. Wavelength division products will gradually sink to outdoor applications. Since its inception, Liante Technology has focused on the R&D, production and sales of optical modules. Up to now, the company has about 150 R&D personnel. The R&D system includes the R&D platform department of optical modules and optical devices and various product lines.
In terms of technology, Liante Technology is very optimistic about the development of 800G optical module and silicon optical technology. Liante Technology said that SIP technology is based on the integration of silicon, and the industry is relatively mature, but it has higher requirements for insertion loss, higher bandwidth and power consumption. The TFLN scheme has good advantages in insertion loss and modulation bandwidth, but its industrialization is still in the early stage. The company will parallel the technologies of silicon optics and TFLN, especially the SIP technology, which has the advantages of high integration and easy integration, and will become the basic core technology for the company to focus on building “optoelectronic hybrid integration and chip-level optoelectronic hybrid packaging”.
At present, the optoelectronic hybrid integration project based on SiP and TFLN of Liante Technology, such as the single-wave 200G optical module, is in the R&D stage, while the company’s three 800G optical module schemes based on EML, SiP and TFLN modulation technology are also in the small batch production, sample and R&D stages.
In the future, Liante Technology will follow the industry trend, seize the market opportunity, expand the product form, provide complete solutions for high-speed optical transmission and optical interconnection, and continue to extend to the upstream of the industrial chain, develop and accumulate optical device packaging technology for high-speed optical modules, optoelectronic hybrid integration and SIP chip design and integration, as well as high-speed optical connection technology required for the next generation of NPO/CPO products Laser technology and chip-level optoelectronic hybrid packaging technology and other “bottom” technologies enhance the core competitiveness of the company, thus improving the market competitiveness of products.