Yutong Optics increases investment in automotive optics business, facing market competition pressure

Yutong Optics established Dongguan Yutong Automotive Vision Co., Ltd., which is mainly engaged in the research and development, production and sales of automotive lenses, striving to create a second growth curve. In 2022, Yutong Optics acquired a 20% stake in Jiuzhou Optics, a manufacturer of automotive lenses, completed industrial and commercial changes and changed its name to Yutong Jiuzhou, further increasing its investment in the automotive field. The 2023 performance report shows that Yutong Jiuzhou's operating income was 231 million yuan and its net profit was 21.2493 million yuan; Yutong Automotive Vision was still in a loss in the first half of the year, with a net profit loss of 3.0158 million yuan. The automotive optics market is highly competitive, and many consumer/security/industrial optics, lenses, and module companies have entered the automotive front-end track. Yutong Optics faces pressure to lower prices and increased profit pressure.