On September 22, Hycreate Optoelectronics announced its registration for listing guidance on the Beijing Stock Exchange. The company signed a guidance agreement with Industrial Securities and submitted relevant materials to the Fujian Securities Regulatory Bureau, officially launching its IPO process on the Beijing Stock Exchange.

Previously, on May 5, 2023, Hycreate Optoelectronics had its IPO application for the STAR Market accepted. However, in November 2025, the Shanghai Stock Exchange terminated its review of the issuance and listing application after the company and its sponsor voluntarily withdrew the application. Following a significant performance downturn from 2024 to 2025, the company is now seeking to present a narrative of “recovery and renewal” with its rebound in the first half of 2026.

From a business structure perspective, Hycreate Optoelectronics focuses on the research and development, production, and sales of laser optical components and laser modules. Its product range covers laser emission, transmission, and reception, with downstream applications spanning four key sectors: LiDAR, optical communications, industrial lasers, and medical and precision instruments.

However, the contributions from these four sectors are far from balanced. LiDAR has been the primary growth driver in recent years, but it is also the most volatile sector. Hycreate Optoelectronics is a leading global supplier of core components and modules for automotive LiDAR, capable of mass-producing and delivering 1.5μm fiber-optic LiDAR light source modules. Its clientele includes major domestic and international companies such as Innovusion, RoboSense, Innoviz, and Hesai Technology.

The vulnerability of this single-core driver became fully apparent from 2024 to 2025. Innovusion introduced a second supplier and reduced its procurement share, while Luminar filed for bankruptcy due to lower-than-expected downstream mass production deliveries and deteriorating operations. Coupled with price reductions for major LiDAR products, the company’s LiDAR business revenue contracted significantly. Net profit attributable to the parent company peaked at RMB 122.3 million in 2023, dropped to RMB 65.33 million in 2024, and further shrank to RMB 13.89 million in 2025. Fluctuations in the LiDAR business almost single-handedly determined the company’s overall performance trajectory.

The 2026 interim report reveals that revenue in the first half reached RMB 484.7 million, marking a year-on-year increase of 65.70%. Net profit attributable to the parent company was RMB 68.62 million, representing a substantial year-on-year surge of 578.80%. The gross profit margin recovered from 26.47% in the same period last year to 37.36%. An improvement in gross profit margin of over 10 percentage points typically signals structural product enhancements or significant cost optimizations, rather than merely a rebound in demand. Relying solely on increased capacity utilization would struggle to explain such a remarkable improvement, and its sustainability remains to be verified.

Customer concentration poses the most significant risk in Hycreate Optoelectronics’ business structure and was a core concern during the first round of inquiries in its STAR Market IPO attempt. The prospectus disclosed that the company’s LiDAR business revenue primarily stems from Innovusion and Luminar, with these two major clients contributing a combined 78.40% to the LiDAR business revenue. This concentration had a substantial business impact after Luminar filed for bankruptcy in 2025.

While the company continues to broaden its customer base in optical communications, industrial lasers, and medical and precision instruments—establishing collaborations with Coherent, Source Photonics, Eoptolink, and Accelink in optical communications, clients in the industrial laser sector including Raycus Laser, Maxphotonics, JP Optics, Trumpf, and Han’s Laser, and covering Mindray Medical, JMTEK, and MGI Tech in the medical field—the revenue scale of these sectors still significantly trails that of LiDAR. Rebalancing the customer structure is a long-term project that cannot be achieved within a single reporting period.

From a capital path perspective, Hycreate Optoelectronics’ choice of the Beijing Stock Exchange reflects a pragmatic adjustment. The company’s total R&D investment from 2024 to 2025 was approximately RMB 123 million, accounting for 9.45% of the total operating revenue during the same period, meeting the requirements of the third set of standards for listing on the Beijing Stock Exchange.

However, the Beijing Stock Exchange also imposes basic conditions, such as net assets at the end of the most recent year being no less than RMB 50 million, with profit sustainability remaining a key focus of review. This path aligns well with the company’s current financial profile of “having a revenue base but needing to solidify profitability.” Ultimately, Hycreate Optoelectronics’ rush for the Beijing Stock Exchange is essentially an operation to exchange time for space.

The company must demonstrate during the post-listing guidance period that the customer concentration risk in its LiDAR business has been effectively mitigated, that the optical communications and medical sectors can form a meaningful second growth curve, and that the profit recovery in the first half of 2026 is sustainable.

The optical component industry is characterized by rapid technological iteration and lengthy customer validation cycles. Hycreate Optoelectronics’ first-mover advantage in 1.5μm LiDAR light source modules is genuine, but converting this advantage into sustained pricing power requires diversifying the customer base and horizontally expanding the product matrix.

While a listing on the Beijing Stock Exchange can provide the company with the necessary funds for R&D investment and capacity building, it cannot substitute for the business itself in restructuring the customer base. This is the truly noteworthy variable in Hycreate Optoelectronics’ IPO story.