Stimulated by news of the acquisition of optical communication assets, the stock price of Landun Photoelectron (300862.SZ) has doubled over the past month. Contrary to the stock price trend, the company's fundamentals are far from optimistic, with its revenue scale continuing to shrink and it has yet to emerge from losses.
Securities Star notes that as the company's revenue pillar, the environmental monitoring business has performed poorly, with both revenue and gross profit margin declining. Meanwhile, the provision for impairment losses is further squeezing the company's profit margin. Amid the losses, its cash flow is also in a state of continuous "blood loss". Against the backdrop of sluggish performance, the company seeks a breakthrough through mergers and acquisitions. After failing to make a cross-industry investment in a semiconductor enterprise, the company now aims to reverse the downward trend of losses by acquiring an optoelectronic enterprise.
01. Gross Profit Margins of Both Main Businesses Decline Across the Board
Public information shows that the main business of Landun Photoelectron includes the R&D, production, software development, data application, and services of high-end analytical and measurement instruments. Its products and services are mainly used in fields such as environmental monitoring and meteorological observation.
Securities Star notes that the company's performance has been poor in recent years. Since 2022, affected by factors such as intensified industry competition, delayed progress of project construction, and rising costs, the company's revenue has continued to decline, dropping from CNY 764 million in 2022 to CNY 399 million in 2025, an overall decline of 48%, and it fell into losses last year.
In the first half of 2026, the revenue scale of Landun Photoelectron continued to shrink, with revenue for the period at CNY 179 million, a year-on-year decrease of 3.63%; the net profit attributable to the parent company was CNY -7.4433 million, with the year-on-year loss narrowing somewhat.
By business segment, in the first half of 2026, the company's revenues from environmental monitoring and traffic management were CNY 151 million and CNY 23.2416 million respectively, with year-on-year changes of -1.51% and 7.16% respectively; the gross profit margins for the corresponding businesses were 22.92% and 21.05% respectively, down 3.05 percentage points and 4.21 percentage points year-on-year respectively.
It can be seen that environmental monitoring, as the company's revenue pillar, is currently facing the dilemma of declining revenue and gross profit margin. Against the backdrop of gross profit margins under pressure for both main businesses, Landun Photoelectron' comprehensive gross profit margin in the first half of the year was 22.35%, a year-on-year decrease of 4.05 percentage points.
In addition, asset impairment and credit impairment losses have had a significant impact on Landun Photoelectron' net profit. Due to the provision for inventory falling price losses and contract asset impairment losses, the company's asset impairment amount in the first half of the year was CNY 5.4237 million. During the same period, due to the provision for bad debt losses on accounts receivable, bad debt losses on other receivables, etc., the company's credit impairment loss amount reached CNY 10.628 million.
Amid the decline in net profit, the cash flow performance of Landun Photoelectrons is also not optimistic. In the first half of 2026, the net cash flow generated from operating activities was CNY -67.1766 million, remaining in a state of continuous "blood loss".
Notably, affected by factors such as overall market demand falling short of expectations and intensified industry competition, the business orders corresponding to the company's IPO fundraising project—the new plant construction and technical transformation project for high-end analytical and measurement instruments—have been low. Since the project was completed in 2024, it has not yet achieved profitability. The 2026 semi-annual report shows that the cumulative benefits realized by the project are CNY -22.7983 million, failing to meet the expected benefits.
In stark contrast to its performance, stimulated by news of the acquisition of optical communication assets, the stock price of Landun Photoelectron has shown strong momentum over the past month or so. After resuming trading on August 10, the company hit the daily limit up for 5 consecutive trading days, and touched a phased high of CNY 58.8 per share during trading on August 18. The stock price surged by over 197.21% in the short term, and its market capitalization broke through CNY 10 billion from CNY 3.5 billion before the suspension. As of the close on September 17, the company's stock price closed at CNY 50.03 per share, still representing an increase of 163% compared to before the suspension.
02. Seeking M&A Again After Failed Semiconductor Investment
Amid performance pressure, Landun Photoelectron is attempting to seek new performance growth points through acquisitions.
In August this year, the company rolled out a restructuring plan, intending to acquire a controlling stake in Suzhou Lanchuang Technology Co., Ltd. (hereinafter referred to as "Lanchuang Technology") by issuing shares and paying cash, and to raise matching funds to pay the cash consideration in this restructuring transaction, etc. As of now, the audit and evaluation work related to this transaction have not yet been completed, and the evaluated value and transaction price of the target assets have not yet been determined.
It is reported that the core products of Lanchuang Technology are high-performance vacuum coating equipment necessary for the preparation of ultra-narrowband thin-film filters, etc. Its downstream direct customers mainly include high-end optical filter manufacturers, optical chip, laser, and other precision optical device manufacturers.
In terms of performance, although the target company's revenue is not as high as that of Landun Photoelectron, its profitability is stronger than that of the listed company. In 2025 and the first half of 2026, benefiting from the rapid growth in equipment demand driven by downstream capacity expansion, Lanchuang Technology's business scale continued to expand, with corresponding revenues of CNY 33.5568 million and CNY 171 million, and net profits of CNY 11.2806 million and CNY 102 million respectively. In other words, upon the completion of this acquisition, Lanchuang Technology will be included in the consolidated statements of Landun Photoelectron, and the latter's profitability will be significantly improved, with expectations to achieve profitability.
Behind this acquisition, the capital layout of the actual controllers, the couple Yuan Yonggang and Wang Wenjuan, is also highly watched by the market. Yuan Yonggang's capital territory is not limited to Landun Photoelectron; he also controls two listed companies, Dongshan Precision and Anfu Battery Technology. Under Yuan Yonggang's capital operations, the stock prices and market capitalizations of Dongshan Precision and Anfu Battery Technology have achieved significant growth over the past year. Past successful cases may also be the reason why Landun Photoelectron has been chased by capital.
Securities Star notes that prior to this acquisition, Landun Photoelectron had attempted to enter the semiconductor track but ultimately failed. In 2023, the company initiated its layout in Cygnusemi, investing CNY 180 million to participate in the latter's financing and acquiring a 5% equity stake. At that time, the post-investment valuation of Cygnusemi was about CNY 3.6 billion, with a value-added rate of about 5142.86%, and it had not yet achieved profitability, recording a loss of CNY 420 million in 2023.
Based on the optimistic prospects for the application of domestic baseband chips in the fields of 5G FWA (Fixed Wireless Access) and satellite Internet, Landun Photoelectron chose to continuously increase its layout. In July 2024, the company rolled out another investment plan, intending to add CNY 80 million to acquire a 3.48% stake in Cygnusemi. At that time, Landun Photoelectron stated that some chips and modules developed and produced by Cygnusemi are expected to usher in large-scale commercial use in 2025.
However, this additional investment plan has been delayed in implementation. In December 2025, Landun Photoelectron terminated the relevant transaction on the grounds of "controlling investment and reducing the impact of external investment on the company". Further research reveals that Cygnusemi's failure to turn a loss into a profit for a long time may be an important reason for Landun Photoelectron to terminate the additional investment.
The 2024 annual report and the 2025 semi-annual report disclose that the net losses of Cygnusemi were CNY 337 million and CNY 141 million respectively, failing to achieve profitability all along. Landun Photoelectron' current performance has already weakened. If it continues to increase investment, it will not only be difficult to bring returns in the short term, but may also further drag down its own performance.
This article was first published on Securities Star, Author | Li Ruohan