Yunnan Germanium (002428.SZ) subsidiary signs long-term supply agreement with AOI for 2027 with contract amount of US$194.4 million

Zhitong Finance App News, Yunnan Germanium Industry (002428.SZ) announced that Yunnan Xinyao Semiconductor Materials Co., Ltd. (“Yunnan Xinyao”), a holding subsidiary of the company, has signed a “Long-term Supply Agreement” with the customer Applied Optoelectronics, Inc. (“AOI”). AOI is expected to purchase 180,000 pieces from Yunnan Xinyao every year from 2027 to 2031, for a total of 900,000 4-inch N-type indium phosphide substrates. The actual price and delivery quantity are based on subsequent annual contracts, purchase orders and export licenses. Approval status shall prevail. At the same time, Yunnan Xinyao signed an “Annual Contract” with AOI, agreeing that the 2027 AOI purchase quantity will be 180,000 tablets, with a corresponding amount of US$194.4 million (excluding tax). The actual amount depends on the number of export license approvals and purchase order status.

The signing of the “Long-term Supply Agreement” and “Annual Contract” is expected to bring potential order demand for the company's indium phosphide products and help broaden the company's profit channels. If the contract is successfully executed, it is expected to have a positive impact on the company's operating results in the year of performance. The specific amount of impact and the reporting period for the impact will depend on the specific circumstances of export licenses, purchase orders, and contract execution, based on the company's revenue confirmed by the audit.