Despite reporting annual net profit growth exceeding 235%, Eoptolink Technology Inc.,Ltd. (300502), a leading CPO player, experienced a significant decline on high trading volume on April 24th.
By the market close, Eoptolink's share price had fallen sharply by 11.67%, marking its largest single-day drop since September 4th of the previous year.
The day's trading volume reached a staggering 50.103 billion yuan, setting a new record high for the company since its listing and making it the day's top-traded stock. This volume also ranked as the fourth highest single-day turnover in the history of the A-share market, trailing only previous records set by Orient Wealth, PetroChina, and Ping An of China.
On the evening of April 23rd, Eoptolink released both its 2025 annual report and its 2026 first-quarter report. The annual report revealed that the company achieved operating revenue of 24.842 billion yuan in 2025, a year-on-year increase of 187.29%. Net profit attributable to shareholders reached 9.532 billion yuan, surging 235.89% compared to the previous year.
The company proposed a dividend distribution, planning to allocate a cash dividend of 10 yuan per 10 shares (before tax) to all shareholders, totaling approximately 994 million yuan. Additionally, it proposed a capital reserve transfer of 4 shares per 10 shares.
In 2025, Eoptolink's performance demonstrated explosive growth even against a high base from the same period in previous years, driven by the core competitiveness derived from its technology, which continued to fuel sales revenue.
The annual report also highlighted breakthroughs and progress in multiple R&D projects within new product and technology areas, with sales of high-speed optical modules accounting for an increasing proportion of total sales.
The company has successfully launched a full series of 400G, 800G, and 1.6T optical module products based on silicon photonics and thin-film lithium niobate technologies. It has also developed multiple optical module products with advantages in high density and low power consumption around technology solutions such as LPO/LRO, XPO, and NPO.
Building on this foundation, the company continued to enrich its product matrix, successively introducing a new generation 1.6T DR4 OSFP optical module based on the intensity modulation direct detection standard, a 6.4T NPO module based on silicon photonics technology, and the industry's first 12.8T XPO optical module.
Simultaneously, the company maintains substantial technical reserves and product layouts in cutting-edge technology fields like OCS and CPO.
However, in the secondary market on April 24th, Eoptolink's stock opened over 9% lower and continued to trade weakly throughout the session, closing down 11.67%. Behind the rapidly expanding trading volume, divergence among investors became significantly more pronounced.
Despite gains exceeding 10% for stocks like Meilixin and limit-up gains for others such as Zhongjiabochuang, Rihai Intelligent, and Zhiwei Intelligent, the communication equipment sector, to which Eoptolink belongs, was notably dragged down, becoming one of the day's worst-performing sectors.
The primary reasons for Eoptolink's significant price fluctuation stem from multiple concerns revealed in its first-quarter report. Firstly, the net profit fell below the market's general expectation of around 3.2 billion yuan. Secondly, the growth rate of net profit did not match the growth in operating revenue, indicating a decline in profitability. Additionally, net profit declined quarter-over-quarter.
Compared to the impressive annual report, while Eoptolink's Q1 2026 report showed continued rapid growth, the pace of growth began to slow, and net profit was lower than market expectations.
The Q1 report indicated that the company achieved operating revenue of 8.338 billion yuan, a year-on-year increase of 105.76%. Net profit attributable to shareholders was 2.78 billion yuan, growing 76.80% year-on-year. The performance change was primarily due to a substantial increase in sales revenue compared to the same period last year, benefiting from continued growth in end-customer computing power investments.
An examination of Eoptolink's balance sheet and income statement shows that the lower-than-expected net profit was foreshadowed. Firstly, the company's prepayments in Q1 reached 681 million yuan, a massive increase of 3920% year-on-year, mainly due to increased prepayments for raw materials.
Although the single-quarter prepayment for raw materials surged significantly, against the backdrop of shortages for certain materials in the industry, locking in raw materials in advance can ensure smooth subsequent production. Besides the substantial increase in prepayments, financial expenses in Q1 reached 522 million yuan, also surging by 1678% year-on-year. The company attributed this mainly to increased exchange losses. Given that over 90% of Eoptolink's revenue comes from overseas, fluctuations in the RMB exchange rate indeed impact the company's performance.
Following a multi-fold increase in its share price, divergence among institutional investors has intensified at high levels. Looking at the leading institutions, reduction was the main theme. In Q4 2025, CITIC Securities and Harvest CSI 300 ETF initiated new positions, entering the list of top ten circulating shareholders. Meanwhile, E Fund创业板ETF, Huatai-PineBridge CSI 300 ETF, E Fund CSI 300 ETF, and ChinaAMC CSI 300 ETF reduced their holdings to varying degrees.
In Q1 2026, E Fund CSI Artificial Intelligence Theme ETF initiated a new position.
E Fund创业板ETF, Huatai-PineBridge CSI 300 ETF, and E Fund CSI 300 ETF continued to reduce their holdings on top of the cuts made in the previous quarter.
ChinaAMC CSI 300 ETF and Harvest CSI 300 ETF exited the list of top ten circulating shareholders.
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