AI computing power demand continues to be unleashed, and Eoptolink Technology Inc.,Ltd. (300502) has extended its high growth trajectory through the first three quarters, though single-quarter profit in the third quarter retreated on a sequential basis.
On October 29, Eoptolink Technology Inc.,Ltd. (300502) released its 2026 third-quarter report. In the third quarter, the company recorded operating revenue of 10.94 billion yuan, up 80.30% year-on-year; net profit attributable to shareholders of the listed company was 3.843 billion yuan, up 61.15% year-on-year but down approximately 19% quarter-on-quarter; net profit after deducting non-recurring gains and losses was 3.630 billion yuan, up 53.32% year-on-year.
For the first three quarters as a whole, Eoptolink Technology Inc.,Ltd. (300502) achieved operating revenue of 31.850 billion yuan, up 92.97% year-on-year; net profit attributable to the parent company was 11.372 billion yuan, up 79.74% year-on-year; and net profit after deducting non-recurring gains and losses attributable to the parent company was 11.140 billion yuan, up 76.79% year-on-year. The company stated that the earnings growth was mainly driven by the development of artificial intelligence computing power investment, with sales revenue increasing compared to the same period last year.
However, the high growth in cumulative results stands in contrast to the sequential decline in third-quarter single-quarter profit. At the same time, the company's net cash flow from operating activities in the first three quarters fell 68.42% year-on-year, and inventory at period-end rose 140.70% compared to the beginning of the year.
Q3 Net Profit Falls 19% Quarter-on-Quarter, Single-Quarter Earnings Retreat
From a year-on-year perspective, Eoptolink Technology Inc.,Ltd. (300502) maintained relatively high growth in the third quarter, with revenue increasing by more than 80% year-on-year and net profit attributable to the parent company rising by more than 60% year-on-year. But compared with the second quarter, third-quarter net profit attributable to the parent company declined approximately 19% quarter-on-quarter, marking a retreat in single-quarter profitability.
In the first three quarters, the company's net profit attributable to the parent company reached 11.372 billion yuan, approaching the 10-billion-yuan scale, while net profit after deducting non-recurring gains and losses also reached 11.140 billion yuan, indicating that profitability from the main business was the primary source of profit.
In terms of profit structure, the gap between net profit attributable to the parent company and net profit after deducting non-recurring gains and losses in the first three quarters was approximately 232 million yuan.
During the reporting period, the company recognized fair value change gains of 236 million yuan, a substantial increase from 635,600 yuan in the same period last year. Non-recurring gains and losses in the third quarter totaled 213 million yuan, of which fair value change gains and losses arising from non-financial enterprises holding financial assets and financial liabilities, as well as gains and losses from the disposal of related assets, amounted to approximately 235 million yuan.
Financial Expenses Turn Positive from Negative, Exchange Losses Weigh on Profit Performance
Changes on the expense side also warrant attention.
In the first three quarters of 2026, Eoptolink Technology Inc.,Ltd. (300502) reported operating costs of 16.659 billion yuan, up 91.34% year-on-year, roughly in line with the 92.97% increase in operating revenue over the same period. The company's total operating costs reached 18.448 billion yuan, up approximately 98.8% year-on-year.
Among these, financial expenses shifted from -255 million yuan in the same period last year to 797 million yuan. The company explained in its report that this was mainly due to increased exchange losses resulting from exchange rate fluctuations during the reporting period.
The change in financial expenses placed pressure on profit performance. At the same time, the company's R&D expenses in the first three quarters were 600 million yuan, up approximately 19.7% year-on-year; administrative expenses were 194 million yuan, up approximately 3.1% year-on-year; and selling expenses were 119 million yuan, down approximately 3.5% year-on-year.
On the tax front, income tax expenses in the first three quarters reached 2.114 billion yuan, up 192.20% year-on-year. The company said this was mainly due to an increase in operating profit during the reporting period, which led to a corresponding increase in current income tax expenses.
Inventory Up 140.70% from Start of Year, Company Cites Stockpiling for Order Growth
As of the end of September 2026, Eoptolink Technology Inc.,Ltd. (300502) reported inventory of 17.413 billion yuan, up 140.70% from 7.234 billion yuan at the end of 2025, with the increase significantly outpacing the 92.97% year-on-year revenue growth in the first three quarters.
Regarding the inventory increase, the company stated that it was mainly due to stockpiling during the reporting period after taking into account growth in on-hand and expected orders as well as the stockpiling cycle.
Beyond inventory, several working capital-related items also increased. As of the end of September, the company's accounts receivable stood at 7.487 billion yuan, up 68.72% from the beginning of the year; prepayments were 1.322 billion yuan, compared with only 16.9587 million yuan at the beginning of the year, mainly due to an increase in prepaid material payments.
Accounts payable reached 10.460 billion yuan, up 180.69% from the beginning of the year; notes payable stood at 2.884 billion yuan, up 86.18% from the beginning of the year. The company said this was mainly due to increased material procurement, with corresponding increases in payables and notes payable settled through bank acceptance bills.
Operating Cash Flow Down 68.42% Year-on-Year, Capacity Investment Continues to Increase
Despite high earnings growth, Eoptolink Technology Inc.,Ltd. (300502) saw a notable decline in operating cash flow in the first three quarters.
The report showed that the company's net cash flow from operating activities in the first three quarters was 1.464 billion yuan, compared with 4.637 billion yuan in the same period last year, down 68.42% year-on-year.
Looking at cash flow details, cash received from the sale of goods and provision of services in the first three quarters was 29.435 billion yuan, up approximately 93.8% year-on-year; cash paid for the purchase of goods and receipt of services reached 27.268 billion yuan, compared with 10.326 billion yuan in the same period last year. In addition, various taxes and fees paid by the company amounted to 2.164 billion yuan, up approximately 108.4% year-on-year.
The company explained that the decline in net operating cash flow was mainly due to increased payments for materials and various taxes and fees during the reporting period.
At the same time, the company continued to invest in production capacity. As of the end of September, the company's fixed assets reached 5.011 billion yuan, up 49.40% from the beginning of the year; construction in progress was 633 million yuan, up 93.70% from the beginning of the year. Net cash flow from investing activities in the first three quarters was -1.861 billion yuan, compared with -896 million yuan in the same period last year. The company said this was mainly due to increased investment in fixed assets.
At period-end, the company's total assets reached 44.667 billion yuan, up 72.58% from the beginning of the year; owners' equity attributable to shareholders of the listed company was 27.958 billion yuan, up 55.99% from the beginning of the year.
Overall, Eoptolink Technology Inc.,Ltd. (300502) achieved substantial growth in both revenue and net profit in the first three quarters, with artificial intelligence computing power investment remaining an important driver of the company's revenue growth. However, the approximately 19% quarter-on-quarter decline in third-quarter net profit, along with weakening operating cash flow, a sharp increase in inventory, and financial expenses turning positive from negative, has made single-quarter earnings changes and capital turnover important observation points in the financial report. Whether future performance can continue to grow still needs to be further observed in light of factors such as order delivery, inventory conversion, cash collection, and exchange rate movements.
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