CASTECH: Faraday rotator materials have passed certification by certain customers and are already being supplied

Radar Finance | Written by Feng Xiuyu | Edited by Li Yihui

On May 29, CASTECH (002222) released an announcement regarding its investor relations activity record (from a research visit). The announcement indicated that CASTECH's revenue growth in 2025 is primarily driven by rising demand for components spurred by the development of all-solid-state nanosecond UV lasers, ultrafast lasers, and the optical communications industry, as well as contributions from improved operating performance across its subsidiaries.

The company’s future development strategy follows an integrated path from 'materials – components – modules – devices,' with three core business segments advancing in parallel. Its flagship crystals, BBO and LBO, hold approximately 70% market share.

As a key material in optical isolators, Faraday rotator plates are benefiting from the rapid growth of the downstream high-speed optical module industry, resulting in strong market demand. The product has already passed certification with certain customers and commenced shipments. Revenue from this business accounted for less than 1% of total revenue in fiscal year 2025 and remains in the capacity ramp-up phase.

The company’s Phase II Building D is expected to reach structural topping-out in the first half of the year. Current capacity utilization is high, and future capacity expansion will be planned prudently based on market demand and existing orders.

According to Tianyancha data, CASTECH Inc. (full name: Fujian CASTECH Inc.) was established on October 31, 2001, with registered capital of RMB 4.7025 billion. Its legal representative is Chen Hui, and its registered address is Building 9, Zone F, Fuzhou Software Park, No. 89 Software Avenue, Gulou District, Fuzhou. The company primarily engages in the research and development, manufacturing, and sales of crystal components, precision optical elements, and laser devices.

Currently, the company’s chairman is Chen Hui, and its board secretary is Xue Hanfeng. The latest annual report indicates a total employee count of 2,236. The actual controller is the Fujian Institute of Research on the Structure of Matter, Chinese Academy of Sciences, which holds an 18.58% stake in Fujian CASTECH Inc.

The company holds equity stakes in or controls five subsidiaries, including Fujian Huajing Investment Co., Ltd., Qingdao Hi-Tech Optoelectronics Technology Co., Ltd., and Fujian Ruichuang Optoelectronics Technology Co., Ltd.

In terms of financial performance, the company reported revenues of RMB 782 million, RMB 876 million, and RMB 11.58 billion in 2023, 2024, and 2025, respectively, representing year-over-year growth of 1.73%, 12.04%, and 32.21%. Net profit attributable to shareholders amounted to RMB 209 million, RMB 219 million, and RMB 279 million in the same periods, reflecting year-over-year changes of -7.65%, 4.65%, and 27.32%. Over the same timeframe, the company’s debt-to-asset ratios stood at 10.40%, 14.62%, and 21.42%, respectively.

Regarding risk exposure, Tianyancha data shows the company has 23 internal risk records, 277 associated-party risk records, 30 historical risk records, and 122 risk alert notifications.

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