--- title: "The King of AI Optical Modules is here! Zhongji Innolight has passed the hearing and is about to list on the Hong Kong Stock Exchange." type: "Topics" locale: "en" url: "https://longbridge.com/en/topics/42762267.md" description: "According to disclosures by the Hong Kong Stock Exchange, on July 17, 2026, Zhongji Innolight Corporation Limited (hereinafter referred to as "Zhongji Innolight" or "the Company") passed the hearing, with Goldman Sachs, CICC, Morgan Stanley, and GF Securities serving as joint sponsors. The main entity of Zhongji Innolight was formerly Longkou Zhongji Electrical Machinery Co., Ltd., founded by Wang Weixiu in Longkou, Shandong in June 2005, and later changed to Zhongji Equipment after share reform. The company was officially listed on the ChiNext Board of the Shenzhen Stock Exchange in April 2012, with stock code 300308; in 2017..." datetime: "2026-07-17T09:56:17.000Z" locales: - [en](https://longbridge.com/en/topics/42762267.md) - [zh-CN](https://longbridge.com/zh-CN/topics/42762267.md) - [zh-HK](https://longbridge.com/zh-HK/topics/42762267.md) author: "[IPO聚焦](https://longbridge.com/en/profiles/26910294.md)" generator: "portal-rs" --- # The King of AI Optical Modules is here! Zhongji Innolight has passed the hearing and is about to list on the Hong Kong Stock Exchange. According to disclosures by the Hong Kong Stock Exchange, on July 17, 2026, **Zhongji Innolight Corporation Limited (hereinafter referred to as "Zhongji Innolight" or "the Company") passed the hearing**, with Goldman Sachs, CICC, Morgan Stanley, and GF Securities serving as joint sponsors. The predecessor of Zhongji Innolight's main entity was Longkou Zhongji Electrical Machinery Manufacturing Co., Ltd., founded by Wang Weixiu in June 2005 in Longkou, Shandong. After undergoing shareholding reform, it was renamed Zhongji Equipment. The company was officially listed on the ChiNext Board of the Shenzhen Stock Exchange in April 2012, with stock code 300308; in 2017, the company completed the full acquisition of Suzhou Innolight, founded by returned overseas doctoral student Liu Sheng in 2008, subsequently renaming itself Zhongji Innolight and fully transitioning to high-end optical module business, while remaining listed on the ChiNext Board of the Shenzhen Stock Exchange. Over the past year, Zhongji Innolight's stock price surged from around 125 yuan to a high of over 1,360 yuan, **accumulating a gain of nearly 10 times**, becoming one of the biggest winners in this round of AI rally in the A-share market. As of the time of writing, Zhongji Innolight (300308.SZ) fell 12.00%, trading at 979.46 yuan, with a total market capitalization of 1.09 trillion yuan. ![Image](https://pub.pbkrs.com/uploads/2026/e5c309b545358f4743f8e27b6a1b6270?x-oss-process=style/lg) Source: Baidu Stock Market ▲ **Main Business** **IPO FOCUS** Zhongji Innolight is a globally leading provider of optical interconnection solutions. Its products cover full-rate optical modules from 10G to 1.6T, primarily adopting packaging formats such as OSFP and QSFP-DD, serving both datacom and telecom sectors, and widely applied in high-speed connection scenarios within and across data centers. ![Image](https://pub.pbkrs.com/uploads/2026/8966ee15699c3ad363f4e540669fc600?x-oss-process=style/lg) Source: Prospectus ▲ According to Frost & Sullivan, the company has been the **global optical interconnection solution provider with the largest revenue** for five consecutive years since 2021. In 2025, its overall market share was 21.2%, and its share in the high-speed datacom segment of 400G and above further increased to 28.1%, **firmly ranking first in the industry**. ![Image](https://pub.pbkrs.com/uploads/2026/77bdb6284abdeec7c90cffd4fb386d6d?x-oss-process=style/lg) Source: Prospectus ▲ Technologically, the company achieved mass production of three generations of high-speed optical modules: 400G (2018), 800G (2020), and 1.6T (2023). According to Frost & Sullivan, **its mass production timing led the closest competitors by about half a year**. The company pioneered non-hermetic packaging solutions in 2012 and began mass-producing silicon photonics optical modules in 2017. By 2025, it had become the **world's largest** supplier of silicon photonics optical modules by revenue, with silicon photonics technology products accounting for approximately 70% of high-speed product revenue. The company began laying out coherent technology in 2018, pioneering Coherent Lite technology, and successively showcased the industry's first 800G Coherent Lite optical module, 12.8T XPO optical module assembly, and 6.4T NPO module at the OFC 2025 and 2026 exhibitions. As of March 31, 2026, the company held 506 authorized patents. Regarding customers, according to public statements by Liu Sheng and multiple reports, **Google** was the company's earliest certified top-tier customer. Cooperation between the two began in 2011, with early 40G optical modules being custom-developed for Google. Google Capital also invested in Suzhou Innolight, which aligns with the cooperation start year of the largest customer mentioned in the prospectus. According to public reports, **Microsoft, Amazon AWS, Meta, and NVIDIA** are also core customers of the company: holding approximately 30% to 40% share in Amazon AWS's 800G procurement, about 50% share in Microsoft's direct procurement system, and becoming one of the main suppliers of NVIDIA's 800G optical modules starting in 2025. In the domestic market, it is an important supplier to **Huawei and Alibaba**. In terms of sales volume, the company's **optical module delivery volume** increased from 7.5 million units in 2023 to 14.6 million units in 2024, and further to 21.1 million units in 2025, reaching 9 million units in the first quarter of 2026 alone. **The growth in high-speed optical module sales was particularly significant**, increasing from 2.504 million units in 2023 to 14.612 million units in 2025. Regarding average product pricing, the **average selling price of high-speed optical modules** (excluding taxes) decreased from 2,838 yuan in 2023 to 2,212 yuan in 2024, mainly reflecting the natural downward price trend of the product lifecycle; it then rebounded to 2,333 yuan in 2025 due to product mix upgrades, and further rose to 2,458 yuan in the first quarter of 2026. The average price of medium-to-low speed optical modules gradually declined from 621 yuan in 2023 to 520 yuan in 2025. In terms of capacity and global layout, as of March 31, 2026, the company's annualized production capacity reached 43.3 million units, representing a 2.9-fold increase compared to 2023. The company operates five major production bases and four R&D centers globally, with offices in Singapore and the United States, and production facilities in Thailand. For the three months ended March 31, 2026, overseas market revenue accounted for more than 90% of total revenue. Regarding R&D investment, as of March 31, 2026, the company employed 2,292 full-time R&D personnel, including over 1,700 R&D professionals with an average of nine years of industry experience; all core technologies were independently developed. The company is also actively laying out emerging technology directions such as NPO, CPO co-packaging technologies, and XPO ultra-high-density pluggable optical modules, showcasing several industry-first products at the OFC 2026 exhibition. **Industry Outlook** **IPO FOCUS** According to Frost & Sullivan data, the **total global AI capital expenditure** amounted to approximately $0.9 trillion from 2021 to 2025, and is expected to further increase to $6.1 trillion from 2026 to 2030, more than five times that of the previous five years. As a key technological path to unleash the performance of AI computing clusters, optical interconnection is expected to account for about 5% of global AI capital expenditure in 2025, with long-term potential to rise to about 10%. According to LightCounting and Frost & Sullivan data, the **global optical interconnection market size** will grow from $24.8 billion in 2025 to $111 billion in 2030, with a compound annual growth rate (CAGR) of 31.6% from 2026 to 2030. The datacom sector is the main driver of market expansion, with its scale expected to expand from $19.4 billion in 2025 to $98.6 billion in 2030, achieving a CAGR of 33.8%, significantly faster than the telecom sector. ![Image](https://pub.pbkrs.com/uploads/2026/d7623d71743c6633125d48d2aba8f04f?x-oss-process=style/lg) Source: Prospectus ▲ From the perspective of product speed structure, 800G products have fully entered the large-scale deployment stage in 2025, and 1.6T products have simultaneously transitioned to mass production, with an expected CAGR of 57.6% from 2026 to 2030, making them the mainstream deployment solution for the next five years. Commercial validation of 3.2T products is also accelerating. In contrast, the proportion of 400G and below products is expected to continue shrinking. ![Image](https://pub.pbkrs.com/uploads/2026/a7b4f96dfa0d5e3944c080f74d9419ef?x-oss-process=style/lg) Source: Prospectus ▲ There are several potential upward drivers in the industry: First, the shipment of xPUs in AI computing clusters is expected to increase from approximately 14 million units in 2025 to about 60 million units in 2030, with a CAGR of approximately 34%; Second, the optical interconnection ratio in scale-out networks is expected to continue to increase as cluster scales expand; Third, for scale-up networks previously dominated by copper connections, their optical penetration rate is expected to rise to the 20%-30% range in the coming years, opening up incremental space. **Shareholding Structure** **IPO FOCUS** Prior to the offering, the company's **single largest shareholder group** consisted of Mr. Wang Weixiu, Longkou Zhongji Zhiyuan, and Mr. Wang Xiaodong (son of Mr. Wang Weixiu), forming a concert party relationship. The three parties collectively held 17.34% of shares, among which Zhongji Holdings held 10.89% (with equity interests held by Mr. Wang Weixiu, Longkou Zhongji Zhiyuan, and Mr. Wang Xiaodong at 52.06%, 28.66%, and 19.28% respectively). Mr. Wang Weixiu additionally held 6.25% directly, and Mr. Wang Xiaodong held 0.19% directly. Dr. Liu Sheng, Chairman and President of the company, and his concert party entities (Suzhou Yixingfu, Suzhou Yunchangjin, Suzhou Youhuiran, ITC, Suzhou Zhouyuran, Suzhou Furuihui, and Suzhou Ruilinan) collectively held 8.56% of shares. ![Image](https://pub.pbkrs.com/uploads/2026/10e13f3dc754b5f2b2fa04576ebe01ab?x-oss-process=style/lg) Chart: IPO Focus ▲ **Financial Data** **IPO FOCUS** **Revenue**: The company's revenue increased from 10.72 billion yuan in 2023 to 23.86 billion yuan in 2024, and further to 38.24 billion yuan in 2025, with a CAGR of approximately 88.9% from 2023 to 2025. Revenue in the first quarter of 2026 was 19.50 billion yuan, representing a year-on-year increase of 192.1%. Revenue growth was primarily driven by the surge in sales of high-speed optical modules, whose revenue share increased from 66.3% in 2023 to 89.2% in 2025, and further to 94.6% in the first quarter of 2026. **Gross Profit**: The company's gross profit increased from 3.38 billion yuan in 2023 to 15.88 billion yuan in 2025, with a CAGR of approximately 116.6%. The overall gross margin increased from 31.6% to 41.5% during the same period, and further to 45.5% in the first quarter of 2026, mainly benefiting from the continuous increase in the revenue share of high-margin high-speed optical modules. **Net Profit**: The company's net profit increased from 2.21 billion yuan in 2023 to 5.37 billion yuan in 2024, and further to 11.58 billion yuan in 2025, with a CAGR of approximately 129.0%. The net profit margin increased from 20.6% to 30.3% during the same period, with net profit reaching 6.32 billion yuan in the first quarter of 2026. Regarding R&D expenses, the company's R&D costs increased from 740 million yuan in 2023 to 1.62 billion yuan in 2025, with a CAGR of approximately 47.8%. The proportion of R&D expenses to operating expenses increased from 54.9% to 61.8%, maintaining a high level of around 56.8% in the first quarter of 2026, reflecting the company's continued investment in maintaining its technological leadership. ![Image](https://pub.pbkrs.com/uploads/2026/77eaefe68647f7daba929688cf2b5a6b?x-oss-process=style/lg) ![Image](https://pub.pbkrs.com/uploads/2026/3d85915c0d2425d458895eee0c14fb78?x-oss-process=style/lg) Source: Prospectus ▲ **Adjusted Net Profit**: After excluding the impact of non-cash items such as share-based payment expenses, the company's adjusted net profit increased from 2.36 billion yuan in 2023 to 5.59 billion yuan in 2024, and further to 11.85 billion yuan in 2025. The adjusted net profit margin increased from 22.1% to 31.0% during the same period. In the first quarter of 2026, the company's adjusted net profit was 6.62 billion yuan, a significant increase from 1.74 billion yuan in the same period of 2025, with the adjusted net profit margin rising from 26.0% to 33.9%. ![Image](https://pub.pbkrs.com/uploads/2026/22371f26d32e967cc29a04b37cdd97bd?x-oss-process=style/lg) Source: Prospectus ▲ In terms of revenue structure, by region, **the United States is the company's largest source of revenue**, contributing 21.90 billion yuan in 2025, accounting for 57.3%. The revenue share from mainland China decreased from 15.3% in 2023 to 9.4% in 2025, while the revenue share from other overseas regions (mainly Singapore, Netherlands, UK, and Hong Kong, China) increased from 8.8% to 33.3%, reflecting the deepening globalization of the company's customer and capacity layout. ![Image](https://pub.pbkrs.com/uploads/2026/294a6c15081d6b1ad06154e182c4ca3c?x-oss-process=style/lg) Source: Prospectus ▲ By product, **the majority of the company's revenue comes from high-speed optical modules**, which contributed 89.2% of revenue for the full year of 2025. ![Image](https://pub.pbkrs.com/uploads/2026/48894dc127da60de78d2cb364c789a57?x-oss-process=style/lg) Source: Prospectus ▲ Regarding liabilities, the company's **borrowings** increased from 850 million yuan in 2023 to 2.61 billion yuan in 2024, mainly due to funding needs brought by business expansion; they decreased to 1.49 billion yuan in 2025, mainly due to repayment of borrowings, and rebounded to 1.52 billion yuan at the end of the first quarter of 2026. During the same period, the asset-liability ratio remained in a relatively low range of 26% to 33%, indicating that the company's overall financial leverage is stable. ![Image](https://pub.pbkrs.com/uploads/2026/b23e68216e0d56c1628e881cf97bb32e?x-oss-process=style/lg) Source: Prospectus ▲ Regarding accounts receivable, the company's **trade receivables** increased from 2.64 billion yuan at the end of 2023 to 6.33 billion yuan at the end of 2025, and further to 9.60 billion yuan at the end of March 2026, mainly due to the expansion of revenue scale; however, the trade receivables turnover days continuously shortened from 71 days to 56 days, 53 days, and 37 days during the same period, indicating continuous improvement in collection efficiency. As of May 31, 2026, 80.1% (approximately 7.69 billion yuan) of the trade receivables at the end of the first quarter of 2026 had been settled post-period, and the overall collection risk remains controllable. ![Image](https://pub.pbkrs.com/uploads/2026/2679ed05f2341a562d2db6cbb7ed36ea?x-oss-process=style/lg) Source: Prospectus ▲ Regarding cash flow, the company's **net cash flows from operating activities** increased from 1.85 billion yuan in 2023 to 3.14 billion yuan in 2024, and significantly to 10.88 billion yuan in 2025, reaching 3.36 billion yuan in the first quarter of 2026. It is worth noting that the matching degree between operating cash flow and net profit narrowed once between 2023 and 2024—operating cash flow accounted for 84.0% of current net profit in 2023, dropping to 58.4% in 2024, mainly because the rapid business expansion led to inventory and trade receivables growing faster than trade payables, occupying more working capital; this gap narrowed significantly in 2025, with operating cash flow recovering to 93.9% of net profit, mainly benefiting from the combined effect of a 430 million yuan increase in trade payables that year and the continuous improvement in accounts receivable turnover days. Operating cash flow in the first quarter of 2026 was approximately 53.1% of the current net profit, mainly related to the temporary occupation of working capital caused by the 192.1% year-on-year surge in revenue that quarter, but considering that the post-period collection ratio has already exceeded 80%, the company's overall collection quality remains healthy. ![Image](https://pub.pbkrs.com/uploads/2026/697cbb2833c1500665551b770df2bf02?x-oss-process=style/lg) Source: Prospectus ▲ ### Related Stocks - [NVDA.US](https://longbridge.com/en/quote/NVDA.US.md) - [300308.CN](https://longbridge.com/en/quote/300308.CN.md) - [09988.HK](https://longbridge.com/en/quote/09988.HK.md) - [89988.HK](https://longbridge.com/en/quote/89988.HK.md) - [BABA.US](https://longbridge.com/en/quote/BABA.US.md) - [GOOG.US](https://longbridge.com/en/quote/GOOG.US.md) - [GOOGL.US](https://longbridge.com/en/quote/GOOGL.US.md) - [MSFT.US](https://longbridge.com/en/quote/MSFT.US.md) - [META.US](https://longbridge.com/en/quote/META.US.md) - [KBAB.US](https://longbridge.com/en/quote/KBAB.US.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**