On February 10, 2024, a noticeable surge was observed in the stock prices of companies involved in the AI glasses concept, with Yongxin Optical (603297) witnessing a dramatic increase of over 8% at one point during the afternoon trading sessionAlthough there was a slight retreat towards the end of the trading day, the shares still closed with a robust 5.25% gain, finishing at 113.88 RMB per shareThis upward trend didn't appear out of nowhere; it had been gaining momentum since February 6, with Yongxin's stock price exhibiting increases of 10%, 7.73%, and 5.25% on subsequent days, leading to an overall deviation of more than 20% in closing prices over these three trading daysSuch variations in stock performance typically signal market volatility or speculative interests among traders and investors alike, an occurrence that often invites regulatory scrutiny.

Following this significant fluctuation, Yongxin Optical promptly issued a statement addressing the reasons behind the price movementThey acknowledged that they had noticed some media outlets categorizing the company within the realms of intelligent driving and AI glasses conceptsWhile the company stated that there weren’t any major changes in its core clientele in the intelligent driving sector, the revenue derived from this segment remains relatively small, and forward-looking expectations concerning customer acquisition remain uncertainIn terms of AI glasses or augmented reality (AR) glasses, Yongxin clarified that these are not the primary application fields for their optical products, which collectively represent a minuscule share of less than 1%.

Investor queries on the company's engagements with AI glasses have increased on interactive platforms since the second half of 2024. In response to these inquiries, Yongxin indicated that their core optical component products could be leveraged within the realm of AR glasses

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They have successfully developed and shipped camera modules for AI glasses, tailored for individuals with hearing or vision impairments focused on medical and rehabilitative useThese camera modules boast high resolutions and industry-leading advantagesFurthermore, Yongxin has established itself as the primary supplier of customized optical products for Kanvis, gradually initiating the development of more complex module products.

Yongxin Optical's primary business segments comprise optical microscopes, barcode machine vision, vehicular LiDAR, and medical optical solutionsTheir key products include optical microscopes, barcode scanner lenses, automatic zoom modules, machine vision lenses, optical core components for LiDAR systems, and endoscope lenses, among others.

In the first half of 2024, Yongxin's optical microscope segment generated sales revenue of 163 million RMB, reflecting a year-on-year decline of 12.78%. Conversely, buoyed by a swift recovery in the barcode scanning business and the scale production of LiDAR products, their optical component segment saw a revenue increase of 30.95%, amounting to 254 million RMB, with the automotive and LiDAR businesses reaching a milestone of 70 million RMB in sales, representing a staggering growth of 120% compared to the previous yearPresently, Yongxin's LiDAR products have ventured into the supply chains of leading global firms such as Sony, Hesai, TuDaTong, and Valeo.

As a frontrunner in the optical microscope and precision optical components domain, Yongxin has achieved over 4% domestic substitution rate in the high-end microscope segment, fully covering high-end microscope modules priced below 3 million RMB.

In tandem with accelerating high-end domestication efforts, Yongxin is also actively exploring international market expansions, with an emphasis on North American, European, Japanese, and Korean markets, and is progressively increasing its business initiatives in African, Asian, and Latin American regions

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