Aurora Optoelectronics (600666.SH) In-depth Investment Research Analysis Report

Based on the data and search results I have collected, I now provide you with a systematic and comprehensive analysis report.

---

Indicator	Data	Remarks
Current Stock Price	RMB 3.68	Closing Price on January 16, 2026
Market Capitalization	RMB 10.13 Billion	Total Market Value
Net Profit (Q1-Q3 2025)	RMB 290.8 Million	YoY Growth of 1156.78%
Earnings Per Share (EPS)	RMB 0.1066	Q3 Single Quarter
Gross Profit Margin	14.87%	Mid-tier in the Industry
Net Profit Margin	82.69%	Distorted by Investment Income
ROE	29.55%	Annualized Figure
Asset-Liability Ratio	29.10%	Relatively Robust Financial Structure

---

According to Aurora Optoelectronics’ Q3 2025 Report [1], the core reason for the performance surge is the

, rather than substantive improvement in core operations.

Item	Q1-Q3 2025	Q1-Q3 2024	Change Rate
Operating Revenue	RMB 347.7 Million	RMB 291.0 Million	+19.5%
Operating Profit	RMB 287.3 Million	-RMB 28.8 Million	Turned from Loss to Profit
Investment Income	RMB 313.3 Million	RMB 5.0 Million	+6166%
Net Profit	RMB 290.8 Million	-RMB 8.3 Million	+1156.78%

• Investment income accounts for as high as 107.7% of net profit (Q3 2025)
  [1]
• Excluding investment income, the company’s core operations were still on the verge of loss in the first three quarters
• Investment income mainly includes income from investments in associated and joint ventures (approximately RMB 10.88 million) and other investment gains and losses

From the perspective of the income statement structure, the substantial growth in 2025 investment income mainly comes from:

1. Income from Associated/Joint Venture Investments
   : RMB 10.88 million (YoY growth of approximately 114%)
2. Income from Financial Asset Investments
   : Approximately RMB 302 million (main contributor to the growth)
3. Potential Asset Disposal Income
   : Subject to further confirmation in the annual report

---

Risk Point	Analysis
Volatility of Investment Income	Investment income is highly volatile, unpredictable, and cannot serve as a stable profit source
Core Business Under Pressure	The sapphire business continues to face downward price pressure, with full-year 2024 operating revenue of only RMB 366 million [2]
Losses Continued in 2024	The company’s net profit attributable to parent was -RMB 171 million in 2024 [2]
Non-recurring Net Profit is Negative	Non-recurring net profit remained negative (approximately -RMB 17 million) in the first three quarters of 2025

Supporting Factor	Details
Launch of Computing Power Leasing Business	The company’s computing power leasing project, which was constructed, began operations in November 2023 and contributed incremental revenue in 2024 [2]
Business Diversification Layout	The company is expanding into new business areas such as technical services and equity investment
Healthy Asset-Liability Structure	The asset-liability ratio is only 29.10%, lower than the industry average
Equity Investment Fund Layout	In January 2026, the company plans to contribute RMB 10 million to participate in the establishment of a private equity investment fund [3]

Assessment Dimension	Score	Explanation
Performance Authenticity	★★☆☆☆	High proportion of investment income, limited improvement in core operations
Growth Sustainability	★★☆☆☆	High volatility of investment income, unpredictable
Valuation Rationality	★★★☆☆	Dynamic PE of 26.11x, valuation is on the high side after considering investment income
Investment Suggestion	Cautious Wait-and-See	Enter the market only after clear signals of core business improvement emerge

The sustainability of Aurora Optoelectronics’ 1156.78% net profit surge is low. The current performance growth mainly relies on investment income, a non-recurring profit and loss item, while the core business (sapphire) still faces significant market pressure. Investors should be vigilant against the risk of performance retracement.

---

According to data from Eniu.com [4], the northbound capital holding status of Aurora Optoelectronics is as follows:

Indicator	Data
Current Shareholding Ratio	0.03%
Market Value of Holdings	Approximately RMB 1.21 Million
Number of Shares Held	Approximately 747,000 Shares
Ratio to Tradable A Shares	Approximately 0.03%

Regarding the specific data of “87% increase in northbound capital holdings” you mentioned, I was unable to find confirmation from an authoritative source. Based on actual data:

1. Aurora Optoelectronics belongs to the
   Optoelectronics Industry
   and is a Shanghai-Hong Kong Stock Connect constituent stock
2. The company is not a key holding of northbound capital, with an extremely low shareholding ratio
3. Northbound capital tends to hold leading companies in the optoelectronics sector, such as BOE A (000725.SZ) and TCL Technology (000100.SZ) [5]

Although the specific increase data is unconfirmed, if northbound capital were to increase its holdings in Aurora Optoelectronics, the possible logic would be as follows:

Logic	Analysis
Expectation of Performance Inflection Point	Performance improvement driven by investment income may attract some trend investors
Computing Power Concept	The company’s layout of computing power leasing business is in line with current market hotspots
Turnaround from Distress	Performance improvement after a large loss in 2024 may attract speculative capital
Low Market Capitalization + Hot Concept	Total market capitalization of RMB 10.13 billion, with dual concepts of optoelectronics and computing power

1. Extremely Low Shareholding Ratio
   : A shareholding ratio of 0.03% means northbound capital has extremely low attention to Aurora Optoelectronics
2. Liquidity Risk
   : Average daily turnover is approximately RMB 400 million, which means limited liquidity for large capital
3. Insufficient Fundamental Support
   : Northbound capital prefers companies with solid fundamentals, while Aurora Optoelectronics has limited improvement in core operations

---

Risk Type	Details
Performance Volatility Risk	Performance growth driven by investment income is unsustainable
Core Business Risk	Sapphire market prices continue to face downward pressure
Valuation Risk	Dynamic PE of 26.11x, valuation is on the high side after excluding investment income
Liquidity Risk	Relatively low average daily turnover
Delisting Risk Warning	The company remained in a loss state in 2024

Investor Type	Suggested Strategy
Value Investors	Not Recommended to Buy - No clear signals of fundamental improvement
Trend Investors	Cautious Participation - Set stop-losses, pay attention to the progress of the computing power business
Short-term Traders	Moderate Speculation - Hot concept + performance surge can be followed in the short term
Institutional Investors	Recommended to Wait-and-See - Sustainability of performance is questionable

Tracking Indicator	Focus Timing
2025 Annual Report	To be disclosed on April 16, 2026 [1]
Core Operating Revenue Growth	Pay attention to changes in non-recurring net profit
Progress of Computing Power Business	Pay attention to outstanding orders and revenue recognition
Changes in Northbound Capital Holdings	Pay attention to quarterly shareholding data disclosure

---

Aurora Optoelectronics’ 1156.78% net profit surge is mainly due to a sharp increase in investment income, rather than substantive improvement in core operations. This growth model has low sustainability, and investors should maintain a cautious attitude.

Regarding the data of “87% increase in northbound capital holdings”, since confirmation from an authoritative source cannot be found, it is recommended that investors rely on actually disclosed data. From the overall holding structure of northbound capital, Aurora Optoelectronics is not a key target of their attention, with a shareholding ratio of only 0.03%.

(★★★★★ represents the highest risk)

---

[1] Eastmoney.com - Aurora Optoelectronics (600666) Company Data Panorama (http://quote.eastmoney.com/sh600666.html)

[2] Aurora Optoelectronics Co., Ltd. 2024 Annual Report (https://stockn.xueqiu.com/SH600666/20250418970761.pdf)

[3] Shanghai Securities News - Announcement of Aurora Optoelectronics on Participating in the Establishment of a Private Equity Investment Fund and Overseas Investment (https://paper.cnstock.com/html/2026-01/17/content_2171280.htm)

[4] Eniu.com - Aurora Optoelectronics (600666) Stock Connect Holding Data (https://eniu.com/gu/sh600666/lgt_cg)

[5] Securities Times Network - Exposure of Northbound Capital Holding Paths (https://www.9fzt.com/common/ef19d9f426ed3fa52d0d3edbaa2022c0.html)