In-Depth Analysis of Lianxun Instruments' R&D Expense Ratio and Technical Competitiveness

Based on the publicly available information searched, I will conduct a systematic analysis for you:

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According to data disclosed in the prospectus [1][2], Lianxun Instruments’ R&D expense ratio in 2024 was

, which is at a in the industry:

Company Type	Company Name	2024 R&D Expense Ratio
Lianxun Instruments	Our Company	24.27%
Global Leader	Keysight	18.46%
Global Leader	Anritsu	8.19%
Domestic Peer	RIGOL Technologies	26.64%
Domestic Peer	Siglent Technologies	21.81%
Domestic Peer	Huafeng Test & Control	19.04%
Domestic Peer	Unitech Technology	37.77%
Domestic Peer	GrandChip Microelectronics	50.57%
Domestic Peer	Transcom Communication Technology	44.63%
Domestic Peer	Kunheng Shunwei Technology	31.09%

:

• Lianxun Instruments’ R&D expense ratio is
  nearly 6 percentage points higher than Keysight
  (the global leader in measurement instruments)
• Higher than most large-scale domestic manufacturers such as Huafeng Test & Control and Unitech Technology
• Only lower than a few R&D-driven enterprises such as GrandChip Microelectronics and Transcom Communication Technology

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According to financial data [1][2]:

Period	R&D Investment (in RMB 100 million)	Proportion of Revenue	Proportion of R&D Personnel
2022	0.53	24.99%	-
2023	1.05	37.97%	-
2024	1.91	24.27%	>40%
2022-2024 Cumulative	3.50	-	-

:

• R&D investment in 2024 increased by
  260%
  compared to 2022
• The cumulative R&D investment over three years reached RMB 350 million, reflecting the company’s continuous commitment to technological innovation
• The proportion of R&D personnel exceeds 40%, showing the characteristics of a typical technology-intensive enterprise

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Lianxun Instruments has built three platform-level technology systems in core technology fields [1][3]:

• 50GHz Sampling Oscilloscope, 56GBaud Clock Recovery Unit, 800Gbps Bit Error Rate Analyzer
  : Mass production testing of 400G and 800G high-speed optical modules has been realized
• 1.6T Testing Solution
  : Became the
  second company worldwide
  to master the complete set of industry-leading 1.6T testing solutions
• Market Share
  : Ranks
  third
  in China’s optical communication testing instrument market, and is the
  only local enterprise
  among the top five

• SiC Power Device Wafer-Level Burn-In System
  : Achieved a
  43.6% market share
  in China in 2024, ranking
  first domestically
• Power Chip KGD Sorting and Testing System
  : Ranks
  third
  in the Chinese market from 2023 to 2024, and
  first among local enterprises

• As of September 30, 2025, it has obtained
  339 patents
• Has undertaken national key R&D programs and national major science and technology projects multiple times
• Won the honor of
  National-Level Specialized, Sophisticated, Unique, and New “Little Giant” Enterprise

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According to the prospectus [2], the

, mainly due to the following reasons:

1. Late-Mover Advantage
   : As a latecomer in the market, it must achieve accelerated catch-up through continuous high-intensity R&D investment
2. Downstream-Driven
   : Artificial intelligence has accelerated the rate iteration of optical communication products (800G→1.6T), providing a key technological window period
3. Vertical Integration
   : Achieved independent breakthroughs in key fields such as core chips, self-developed algorithms, and hardware boards

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Dimension	Evaluation Conclusion
R&D Expense Ratio	24.27%, higher than global leader Keysight , at a relatively high level among domestic peers
R&D Investment Scale	RMB 191 million in 2024, higher than most domestic manufacturers such as Huafeng Test & Control and Unitech Technology
Technical Competitiveness	Ranks first domestically in multiple fields, with its 1.6T testing solution reaching the second level globally
Commercialization Capability	Maintains a high gross profit margin of 59%-63%, with customers covering global leading enterprises such as Zhongji Innolight, Eoptolink, and Lumentum

: Lianxun Instruments’ R&D expense ratio ; instead, it reflects its strategic investment intensity as a latecomer catching up with industry leaders. The company has established significant technological barriers and market share advantages in the fields of optical communication testing and power device testing.

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[1] Sina Finance - “Lianxun Instruments Successfully Passes STAR Market Review, China’s Semiconductor Industry IPO Boom Continues” (https://finance.sina.com.cn/money/fund/jjzl/2026-01-14/doc-inhhhtei4889521.shtml)

[2] Shanghai Stock Exchange - Prospectus of Suzhou Lianxun Instruments Co., Ltd. (https://www.sse.com.cn/stock/disclosure/announcement/)

[3] Securities Times - “Lianxun Instruments Plans STAR Market IPO: Breaks Foreign Monopolies in Multiple Fields” (https://www.stcn.com/article/detail/3139892.html)