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On July 16, Xingye Technology made an announcement stating that the indium phosphide assets it intends to acquire are primarily geared towards the production of 2-inch and 3-inch indium phosphide substrates. These substrates find their main application in detectors. Notably, the yield rate for VGF single crystals remains relatively low, and the validation criteria for 4-inch products are stringent, carrying the potential risk of customer validation failure. Presently, none of the company's products are associated with optical module clients. Additionally, the aggregated realized and projected revenue from this business segment in 2026 is expected to constitute a minuscule fraction of the company's 2025 revenue, exerting negligible influence on the company's overall revenue and net profit.
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