Analysis of Liqi Intelligence's Dependency Risk on InnoLight

Based on the collected information, I will conduct a systematic analysis of whether Liqi Intelligence’s dependency on InnoLight constitutes a major operational risk.

According to public information, Liqi Intelligence’s dependency on InnoLight is as follows [0][1][2]:

Time Period	Revenue Share from InnoLight	Corresponding Amount	YoY Growth Rate
2022	57.12%	RMB 82.8153 million	-
2023	62.19%	RMB 180 million	117.17%
2024	58.85%	RMB 319 million	77.22%
H1 2025	65.55%	RMB 161 million	-

From the data, it can be seen that Liqi Intelligence’s dependency on InnoLight shows a trend of

, remaining in an extremely high range of for a long period [0][1][2].

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A clear signal emerged in 2024: when the growth rate of InnoLight’s procurement scale from Liqi Intelligence plummeted from 117% to 77% (a slowdown of 40 percentage points), Liqi Intelligence’s overall revenue growth rate also declined by nearly 12 percentage points year-on-year [1][2]. This fully indicates that any procurement adjustment by the downstream customer will be directly reflected in Liqi Intelligence’s performance.

A significant proportion of Liqi Intelligence’s accounts receivable comes from InnoLight. In H1 2025, Liqi Intelligence’s operating cash flow was -RMB 24.4233 million, facing cash flow pressure [2].

Except for InnoLight, Liqi Intelligence’s top five customers contribute about 80%-93% of its revenue, resulting in extremely high overall customer concentration [1][2]. Once InnoLight reduces procurement, a “double blow” effect will occur.

As a core supplier, InnoLight (ranking first in the global optical module market with a market share of over 40% in 800G and above products) has extremely strong bargaining power [1][2]. Although Liqi Intelligence ranks first globally in optical module die bonding equipment and second in coupling equipment, its bargaining space is limited when facing its largest customer.

If InnoLight chooses other suppliers, Liqi Intelligence will face significant losses. Although the two parties have signed cumulative procurement contracts totaling RMB 334 million, the possibility of the customer transferring orders cannot be completely ruled out in the long term [1].

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The downstream optical module industry itself has a high degree of concentration. According to statistics from institutions such as LightCounting, the top 10 Chinese optical module suppliers account for over 50% of the global market share, and the industry competition pattern is naturally concentrated [1][2]. Against this background, Liqi Intelligence’s high customer concentration has certain industry rationality.

Liqi Intelligence and InnoLight have been cooperating since 2016, and have successively delivered the first coupling equipment, burn-in testing equipment, eutectic die bonding equipment, and die bonding equipment, becoming the main supplier of packaging equipment for InnoLight [1][2]. In early 2025, the two parties also reached a deep cooperation agreement to provide customized 800G optical module chip burn-in equipment solutions for InnoLight’s newly built packaging and testing production line [1].

Liqi Intelligence’s equipment supports the packaging requirements of optical modules with a maximum rate of 1.6T, which highly aligns with InnoLight’s capacity expansion needs for 800G and higher-rate optical modules [1]. This technological collaboration relationship constitutes strong cooperation stickiness.

Liqi Intelligence has begun to expand to other customers and business areas:

• Customer Expansion: Accelink Technologies, YJ Optoelectronics, Shaanxi Electronics, etc.
• Industry Expansion: Extending to the semiconductor field, it has supplied products in batches to customers in the RF industry, and its silicon carbide pre-sintering equipment has passed verification by Silan Microelectronics [1][2]
• Revenue from “Customer 5” in 2022-2024 was RMB 7.96 million, RMB 32.73 million, and RMB 18.91 million respectively

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Risk Dimension	Assessment
Dependency Degree	🔴 High (57%-65%)
Performance Transmission Sensitivity	🔴 High (Slowdown in procurement growth directly leads to revenue growth decline)
Cash Flow Impact	🟠 Medium-High (High proportion of accounts receivable, negative cash flow in H1)
Replacement Risk	🟠 Medium (Deep technological binding, but not the sole supplier)
Diversification Progress	🟡 In progress but limited in scale
Industry Rationality	🟢 Determined by industry characteristics

The reasons are as follows:

1. Risk has emerged:
   Data in 2024 proves that the slowdown in InnoLight’s procurement growth has been transmitted to Liqi Intelligence’s performance decline, which is a real warning of the dependency relationship [1][2].

2. Risk is controllable:
   Liqi Intelligence and InnoLight have deep technological binding, with a 9-year cooperative relationship, and Liqi Intelligence has a global leading market position in the niche equipment field [1][2]. This means the possibility of being replaced in the short term is low.

3. Key Observation Points:
   H2 2025 and 2026 will be a key window period: if InnoLight’s procurement growth continues to slow down, or the overall demand in the optical module industry contracts, Liqi Intelligence’s performance will face greater pressure [1].

• InnoLight’s capital expenditure plan and procurement guidance
• Changes in the proportion of Liqi Intelligence’s revenue from other customers
• Accounts receivable recovery status and cash flow improvement level
• Final judgment results of patent lawsuits (there are currently two pending lawsuits) [2]

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[0] NetEase News - “Liqi Intelligence’s IPO Net Profit Soars, Luo Chao is Undaunted by Patent Lawsuits” (https://www.163.com/dy/article/KIJSCAEE05568W0A.html)

[1] Sina Finance - “Liqi Intelligence’s IPO Net Profit Soars, Luo Chao is Undaunted by Patent Lawsuits” (https://finance.sina.com.cn/stock/newstock/2026-01-06/doc-inhfkfum1295415.shtml)

[2] Sohu - “IPO Radar | Infringing on Invention Patents? Liqi Intelligence Sued by Two Companies! About 60% of Revenue Depends on…” (https://www.sohu.com/a/970100672_121010226)