On the evening of July 21, 2026, Yuanjie Technology released its performance forecast for the first half of 2026. This report reflects the robust momentum of upstream companies in the optical communication supply chain, driven by the explosive demand for artificial intelligence (AI) computing power.
The announcement indicates that Yuanjie Technology expects to achieve operating revenue between 9.00 and 9.50 billion yuan for the first half of 2026, representing a year-on-year increase of 339.13% to 363.53%. The company forecasts net profit attributable to shareholders of 6.00 to 6.50 billion yuan, a surge of 1196.91% to 1304.98%. It also expects adjusted net profit, excluding non-recurring gains and losses, to be between 5.00 and 5.50 billion yuan, growing by 1001.87% to 1112.06%.
Driving Forces Behind the Growth
As AI model training demands exponentially increase computing power, the industry's need for high-speed optical chips has skyrocketed. As a leading optical chip company with an integrated design and manufacturing model, Yuanjie Technology has seen a significant rise in the proportion of its high-margin data center business, directly boosting overall gross profit margins. Furthermore, the expansion of revenue scale has created a pronounced economies-of-scale effect, leading to a relative decrease in the proportion of operating expenses and further enhancing profit potential.
It is noteworthy that the company's equity investments, made indirectly through private funds, generated gains from changes in fair value due to the rising valuation of the invested companies. While these gains contributed to the current period's net profit, even after excluding this impact, Yuanjie Technology's adjusted net profit still achieved growth exceeding 1,000%, underscoring the strength of its core business fundamentals.
Strategic Advantages of the Business Model
In recent years, Yuanjie Technology has deepened its focus in the optical chip field, establishing a complete industrial chain from chip design and wafer manufacturing to packaging and testing. This integrated model demonstrates exceptional resilience during industry upswings. On one hand, the company can rapidly respond to the urgent demand from downstream optical module manufacturers for high-end chips, ensuring timely delivery. On the other hand, the integrated model grants the company greater control over cost management and product iteration.
Market Demand and Industry Outlook
From a demand perspective, 2026 is viewed as a breakout year for AI computing infrastructure build-out. Sustained high capital expenditure by cloud providers and major tech companies on computing power infrastructure is directly fueling demand for 800G and even 1.6T optical modules. As a core component of these modules, Yuanjie Technology's high-speed optical chips have become a highly sought-after commodity within the supply chain. Some analysts believe the current strong demand for computing power will persist at least until 2027-2028, providing a macro backdrop for the robust first-half performance.
Prospects for the Second Half of the Year
Based on the strong momentum in the first half and the company's announced capacity expansion plans, its overall performance in the second half is expected to continue a trend of "high activity and high growth." Firstly, production bottlenecks are anticipated to be further alleviated. In response to the surge in AI computing demand, Yuanjie Technology previously announced plans to invest approximately 12.51 billion yuan to construct a second-phase project for its optoelectronic communication semiconductor chip and device R&D and production base, and to utilize excess raised funds to increase investment in the "50G Optical Chip Industrialization Construction Project." These earlier investments are expected to gradually translate into actual production capacity, easing supply shortages and supporting further revenue expansion.
Secondly, the product mix is set to continue its shift towards higher-end offerings. As demand for 1.6T optical modules gradually increases in the second half, Yuanjie Technology, as a core supplier, is likely to see the shipment proportion of its higher-value products rise further. This will further solidify the company's high gross margin level and ensure sustained profitability.
Potential Market Challenges
However, alongside the optimistic outlook, potential market competition warrants attention. As industry prosperity increases, competitors are also accelerating their capacity expansion. Marginal changes in the competitive landscape remain a factor to monitor.
Overall, Yuanjie Technology's first-half 2026 performance forecast validates its central position in the AI computing power wave. Looking ahead to the second half, with the implementation of fundraising projects and the ramp-up of high-end products, Yuanjie Technology is poised to continue leading the optical chip sector.
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