Optical module leader Zhongji InnoLight achieves record high performance in 2025

On the evening of March 30, Zhongji InnoLight, a leading optical module company, released its 2025 annual report. The company achieved operating income of 38.24 billion yuan, a year-on-year increase of 60.25%; net profit attributable to the parent company was 10.797 billion yuan, a year-on-year increase of 108.78%; non-net profit after deduction was 10.71 billion yuan, a year-on-year increase of 111.31%. All three profitability indicators set new historical records.

During the reporting period, benefiting from the strong investment in computing power infrastructure by end customers, the company's product shipments grew rapidly, and the proportion of high-speed optical modules continued to increase. As product solutions continued to be optimized and operational efficiency continued to improve, the company's operating income and net profit both achieved significant growth compared with the same period last year.

In terms of core business data, Zhongji InnoLight’s optical communication module production capacity, output, and sales in 2025 will be 28.06 million units, 23.76 million units, and 21.09 million units respectively, representing year-on-year increases of 34.4%, 54.69%, and 44.55% respectively. The core business of optical communication transceiver modules achieved operating income of 37.457 billion yuan, a year-on-year increase of 63.67%, and a gross profit margin of 41.61%, a year-on-year increase of 7.96 percentage points.

In terms of market layout, the company's overseas business has performed outstandingly. In 2025, overseas market revenue will be 34.637 billion yuan, a year-on-year increase of 67.2%, accounting for 90.58% of total revenue; domestic market revenue will be 3.603 billion yuan, a year-on-year increase of 14.52%.

During the reporting period, in order to meet the capital needs for overseas business expansion and production operations, the company and its new shareholders Platinum Orchid B2018 RSC Limited (a wholly-owned subsidiary platform indirectly held by the Abu Dhabi Investment Authority), Daxue Investments Pte. Ltd. (a wholly-owned subsidiary indirectly held by Temasek), True Light Investments P Pte. Ltd. (an independent subsidiary indirectly wholly owned by Temasek) will invest a total of US$517 million to increase the capital of the company's controlling subsidiary, TeraHop Pte. Ltd., and subscribe for a total of 16,089,272 ordinary shares of TeraHop. After the capital increase is completed, the company's total equity holdings in Terahop will still be 67.71%, which is consistent with that before the capital increase.

In terms of R&D investment, the company continues to increase its technology layout. In 2025, R&D expenses will be 1.615 billion yuan, a year-on-year increase of 29.84%; as of the end of the year, there are 2,169 R&D personnel, a year-on-year increase of 49.28%, accounting for 18.66% of the total number of employees.

In terms of production capacity construction and investment projects, the company's "Tongling InnoLight High-end Optical Module Industrial Park Phase III Project" will be completed in 2025, marking the completion of all private investment projects in 2021. As of the end of the year, a total of 2.789 billion yuan had been invested in the funds raised from this private placement, of which 228 million yuan and 539 million yuan had been invested in the two high-end optical module production base projects of Suzhou InnoLight and Tongling InnoLight, respectively. In 2025, the benefits were achieved respectively at 390 million yuan and 924 million yuan.