Optical library technology: the capacity utilization of Milan optical library reaches 90%. It is proposed to launch thin film lithium niobate products in the future.

"Milan Optical Library, a wholly-owned subsidiary, is operating normally. Lithium niobate modulators have been mass produced and sold to the outside world, and the current capacity utilization rate has reached 90%." On the afternoon of April 16, Wu Wei, the secretary of 300620.SZ, said at the online presentation meeting of the annual report.

Ji Guijun, executive deputy general manager, revealed that the company develops next-generation photonic materials such as thin film lithium niobate and photonic integrated chip technology through the photonic integration division, and will launch a series of thin film lithium niobate high-speed modulators and modules in the next few years.

According to the annual report, the company's revenue for the whole of last year was about 492 million yuan, an increase of 25.80 percent over the same period last year, and its net profit was about 59.2054 million yuan, an increase of 2.99 percent over the same period last year. Among them, Milan Light Bank lost 13.1075 million yuan. The lithium niobate modulator and photon integrated products of Milan Optical Library had a gross profit margin of only 18% for the whole of last year, while the gross profit margin of the rest of optical communication devices was 44.98%.

Previously, the company expanded the market for optical chip products by acquiring the LiNbO3 (lithium niobate) series of high-speed modulator lines (now Milan Optical Library) of Lumentum and its subsidiaries in Italy and its contract manufacturers. According to the annual report, at present, the total production capacity of lithium niobate series products is 10000 pieces. After the research and development of lithium niobate high-speed modulator chip and industrialization project reach production, the company will add 80,000 pieces of lithium niobate modulator chip and device production capacity. It is reported that the foundation stone of the project was laid on December 10 last year.

In this performance exchange meeting, a number of investors expressed concern about Milan Light Library. The company responded that the integration of assets related to the acquisition of lithium niobate series high-speed modulator product line has achieved phased success. The R & D and production operation team of Milan Optical Library has been successfully set up. At present, the production operation is normal, and the lithium niobate modulator has been mass produced and sold to the outside world. In addition, the company has basically completed the layout of dual R & D centers in China and Italy. The follow-up company will explore appropriate ways such as independent research and development and epitaxial expansion to continue to enter the optical chip market and realize the mass production of middle and high-end laser chips.

The company also said at the performance conference that the lidar field is one of the important development directions of the company in the future, and the company's current position in the relevant market is to provide comprehensive component portfolio delivery capabilities and integrated solution experts for emitting light sources. In the future, the company will seek development opportunities in the field of lidar integration module based on emitting light source.

It is worth mentioning that Ji Guijun has also responded to the quantum technology that has attracted much market attention. The company's general-purpose optical fiber devices such as wavelength division multiplexers can be used in the field of optical communications, including quantum communications. The series of quantum light sources and lithium niobate modulators are the key devices in quantum communication and quantum computing systems, and the company will continue to pay attention to the market opportunities in the field of quantum technology.

For this year's business strategy, Co-Chairman WangXinglong said that in 2021, the company will improve the layout of the "three tracks" of optical fiber laser devices, optical communication devices, lithium niobate modulation devices and photonic integrated devices. Subsequently, the scale of the company will be expanded by means of endogenous growth and epitaxial mergers and acquisitions to enhance the company's comprehensive competitiveness.