ICCSZ News On January 23, 2019, InnoLight Technology (Tongling) Ltd. (hereinafter referred to as “Tongling InnoLight”, a wholly-owned subsidiary of InnoLight Technology (Suzhou) Ltd. (hereinafter referred to as “Suzhou InnoLight”), held a grand launching ceremony for its Tongling InnoLight Optical Module Industrial Park Project in Tongling Economic and Technological Development Zone. After putting into operation, the industrial park will gradually develop its mass production capacity of 5G wireless optical module and 100G digital optical module. Hu Qisheng, deputy secretary of the Tongling Municipal CPC Committee in Anhui and mayor of the Tongling Municipality, Huang Huafeng, deputy mayor, and Du Shuqi, secretary of the Party and Labor Committee of the Tongling Economic Development Zone Administrative Committee, Wang Weixiu, chairman of Zhongji Innolight Co., Ltd. (hereinafter referred to as "Zhongji Innolight", Stock Code: 300308), Liu Sheng, director, president and general manager of Suzhou InnoLight, and representatives of relevant leaders and partners attended the launching ceremony. 

As the fifth generation mobile communication system for 2020 and the future, 5G is an important part of the digital transformation of economy and society. The extensive application of 5G will provide solid support for mass entrepreneurship and innovation, and boost the construction of manufacturing power and cyber powerhouse. With the rapid development of 5G, it is expected that the number of the base stations in the 5G era will exceed several times of those in the 4G era. Moreover, with the increase of the number of base stations and the upgrade of 5G technology, the number and rate of optical modules connecting between base stations will also undergone dramatic qualitative changes. 

It is against such background that Tongling InnoLight came into being. This project is the strategic deployment of Suzhou InnoLight for the future development of the company based on in-depth investigation of the future development trend and the law of technical upgrading in optical communication module. It is an important node in the layout of Suzhou InnoLight in the 5G high-speed optical communication module industry. The start-up of Tongling InnoLight Optical Module Industrial Park will further enrich the product structure of the company, enhance its technological and cost advantages, and thus advance the comprehensive competitiveness of Suzhou InnoLight in 5G market and digital communication market. According to the announcement of Zhongji Innolight’s directional add-issuance plan, the construction fund of the project will be raised by Zhongji Innolight in the form of non-public issuance of shares, and the shortage will be made up for by the company's own funds. After the project reaches production, Tongling InnoLight will develop the production capacity of 1.4 million 5G wireless communication optical modules and 1.6 million 100G optical communication modules per year. In April 2018, after the deliberation and adoption of the plan for non-public issuance of shares by the board of directors of Zhongji Innolight, the company has started building the project in advance with its own funds. 

According to Wang Pan, deputy general manager of Tongling InnoLight, the high-speed optical modules will be used in the construction of 5G base station, which has a high technical threshold. Suzhou InnoLight, parent company of Tongling InnoLight, began to plan and lay out the R & D of 5G base station optical module products in 2015, and communicated with several well-known equipment manufacturers about their demand for 5G. In the second half of 2016, 25G and 100G series of base station optical module products were preliminarily developed and the samples were sent to customers for testing. At present, the company has integrated solutions covering 5G optical modules in forward, intermediate and backward transmission, and has made extensive cooperation with communication equipment manufacturers at home and abroad. 

Wang Pan also said that by the end of 2018, Suzhou InnoLight had participated in the bidding of 5G forward light module for domestic customers, and achieved a good market share, occupying the market's first-mover advantage. The project of Tongling InnoLight Optical Module Industrial Park will gradually release the 5G optical module capacity in the next few years, laying a solid foundation for the company to further enhance its competitiveness in 5G market.