Guangzhi Technology (300489.SZ) has announced a significant strategic move by boosting its capital investment and acquiring a controlling stake in Xianrui Technology. Through this acquisition, the company has successfully taken over all indium phosphide (InP) substrate assets from the Leading Technology Group. Presently, Guangzhi Technology has achieved a milestone by completing the transition from 2-inch to 6-inch third-generation crystals, positioning itself as one of the pioneering domestic manufacturers to introduce 6-inch InP substrates to the market. Its products are now being delivered in large quantities to both domestic and international manufacturers, with the 6-inch variants securing orders from a globally recognized industry leader. Currently, the domestic market is witnessing a shift in customer demand from 2-inch and 3-inch substrates to 4-inch ones, while overseas customers are transitioning from 4-inch to 6-inch substrates. Leveraging the group's robust mass production capabilities for high-purity indium and high-purity electronic-grade red phosphorus, along with its in-house research and development of core equipment, Guangzhi Technology faces no significant material bottlenecks during its expansion.
In the realm of the germanium industrial chain, Guangzhi Technology established a wholly-owned subsidiary, Inner Mongolia Guangzhi Mining Technology Company, in August. The subsidiary plans to purchase lignite powder from the group for germanium purification purposes. The purified metallic germanium will be utilized in the production of electronic material-grade germanium dioxide and other related products. The Xilingol League boasts proven reserves of 113 million tons of germanium-bearing lignite and 3,458 tons of germanium metal. The group's optical materials industrialization project, invested in and constructed in the region, has a total investment of RMB 5.3 billion. Once completed, it will have an annual lignite pretreatment capacity of 900,000 tons and an annual germanium ingot production capacity of 80 tons. However, it is important to note that this business segment has not yet contributed to the company's revenue or profit.