Eoptolink Technology Inc.,Ltd. has delivered a semi-annual report that continues the sector's high momentum. In the first half of 2026, the company achieved operating revenue of RMB 20.91 billion, a year-on-year increase of 100.34%; net profit attributable to shareholders reached RMB 7.529 billion, up 90.98%; and non-GAAP net profit attributable to shareholders stood at RMB 7.511 billion, rising 90.92%. Both revenue and profit nearly doubled, with the ongoing expansion of AI computing infrastructure remaining the core driver behind this performance.
Looking at the business structure, high-speed optical interconnect products continue to be the primary growth engine. During the period, the company's optical interconnect product revenue reached RMB 20.883 billion, up 100.59% year-on-year, with gross margin further climbing to 48.46%, an improvement of 0.99 percentage points from the same period last year. Meanwhile, production capacity, output, and sales volume all grew notably, with capacity rising from 15.2 million units in the prior-year period to 28.36 million units, and sales volume increasing from 6.95 million units to 11.19 million units.
AI demand has not only driven shipment growth but is also accelerating the shift toward higher-speed products. The company has built a comprehensive product matrix covering 400G, 800G, 1.6T, as well as multiple technology routes including LPO/LRO, XPO, NPO, and CPO. During the reporting period, it continued to advance R&D on high-speed optical modules such as 800G and 1.6T. In March 2026, the company also unveiled new products aimed at AI data centers, including 1.6T DR4, 6.4T NPO, and 12.8T XPO based on single-wavelength 400G PAM4 technology.
However, this scale expansion has simultaneously increased pressure on working capital and capital expenditures. As of the end of June, the company's inventory reached RMB 11.655 billion, accounting for 31.80% of total assets, an increase of RMB 4.421 billion from the beginning of the year; accounts receivable also rose to RMB 7.548 billion. At the same time, net operating cash flow stood at RMB 1.616 billion, up 69.67% year-on-year, but net cash flow from investing activities widened to an outflow of RMB 1.292 billion, primarily due to increased fixed asset investments.
Revenue and profit double simultaneously, with profitability remaining at high levels
In the first half, Eoptolink Technology Inc.,Ltd. reported operating revenue of RMB 20.91 billion, up 100.34% year-on-year; operating costs reached RMB 10.781 billion, up 96.48%. Operating profit came in at RMB 8.682 billion, up 95.38%; net profit attributable to shareholders was RMB 7.529 billion, up 90.98%, with non-GAAP net profit at RMB 7.511 billion, up 90.92%. Basic earnings per share reached RMB 5.41, compared with RMB 2.84 in the prior-year period.
Comparing profit growth with revenue growth, the company's earnings expansion slightly lagged revenue, but overall profitability remains robust. The gross margin for optical interconnect products was 48.46%, up 0.99 percentage points year-on-year. The company explained that increased market demand has driven growth in capacity, output, and sales volume, while shifts in product mix have also contributed to the margin improvement.
Expenses remained relatively stable overall. In the first half, selling expenses were RMB 99.418 million, up 17.01% year-on-year; administrative expenses were RMB 130 million, up 4.08%; R&D investment reached RMB 440 million, up 31.85%, representing 2.1% of operating revenue. In contrast, financial expenses swung from a net gain of RMB 208 million in the prior-year period to an expense of RMB 644 million, mainly due to increased exchange losses caused by currency fluctuations, which weighed on profits to some extent.
Optical interconnect revenue dominates, with overseas business becoming the core market
By product, the company's revenue is highly concentrated in optical interconnect operations. In the first half, optical interconnect product revenue was RMB 20.883 billion, accounting for the vast majority of total operating revenue, up 100.59% year-on-year; corresponding operating costs were RMB 10.764 billion, up 96.84%, with a gross margin of 48.46%.
Even more noteworthy is the overseas market. During the reporting period, the company's overseas sales volume of optical interconnect products reached 9.73 million units, corresponding to sales revenue of RMB 20.46 billion, with normal collection of payments. From this perspective, the company's current performance growth is highly correlated with the global AI data center construction cycle, with overseas markets—especially AI infrastructure and large-scale cloud data center customers—remaining an important source of demand.
In the semi-annual report, the company also clearly stated that its customers primarily include AI infrastructure companies, hyperscale cloud service providers and equipment vendors, telecommunications equipment manufacturers, and distributors. Among these, domestic sales mainly target hyperscale cloud service providers, equipment vendors, and telecom equipment manufacturers, while overseas coverage includes AI infrastructure companies and hyperscale cloud service providers and equipment vendors.
800G and 1.6T continue to scale, with product iteration remaining key
The expanding scale of AI computing clusters is driving continuous upgrades in data center interconnect speeds. Eoptolink Technology Inc.,Ltd. stated that 400G, 800G, 1.6T, and higher-speed optical interconnect products have become the company's core products and growth engines, widely applied in AI computing clusters and cloud data centers.
Beyond high-speed products, the company is also laying early groundwork for next-generation optical interconnect technologies. During the reporting period, the company continued R&D efforts around silicon photonics, thin-film lithium niobate, LPO/LRO, XPO, and NPO technologies, and launched 800G/1.6T optical modules based on single-wavelength 200G optical components, 400G and 800G ZR/ZR+ coherent optical modules, as well as 400G/800G LPO optical modules.
While the absolute amount of R&D investment is not particularly high, its growth rate is notably faster than selling and administrative expenses. In the first half, the company's R&D investment was RMB 440 million, up 31.85% year-on-year, with 17 new authorized invention patents added, bringing the cumulative total to 177 by the end of June. The company is also continuing to advance frontier technology layouts, including self-developed 3D MEMS-based optical circuit switches and CPO technologies.
Capacity expansion accelerates, with inventory and capital expenditures rising in tandem
Driven by orders and demand growth, Eoptolink Technology Inc.,Ltd. is clearly expanding its production capacity. In the first half, optical interconnect product capacity reached 28.36 million units, up 86.6% year-on-year; output was 10.91 million units, up 53.7%; and sales volume reached 11.19 million units, up 61.0%. The company stated that the growth in capacity, output, and sales volume primarily stems from increased market demand.
This expansion is also reflected on the asset side. As of the end of June, total assets reached RMB 36.647 billion, up 41.60% from the beginning of the year; among these, inventory stood at RMB 11.655 billion, an increase of RMB 4.421 billion from RMB 7.234 billion at the start of the year, with its share of total assets rising from 27.95% to 31.80%. Accounts receivable were RMB 7.548 billion, up RMB 3.111 billion from RMB 4.438 billion at the beginning of the year. The company explained that the inventory increase was mainly due to higher stocking levels after considering on-hand and expected orders along with lead times.
Meanwhile, fixed assets grew from RMB 3.354 billion at the beginning of the year to RMB 4.109 billion, and construction in progress increased from RMB 327 million to RMB 557 million. Other non-current assets also rose significantly to RMB 1.805 billion, mainly due to increased prepayments for equipment and materials. Net cash outflow from investing activities expanded to RMB 1.292 billion, up 138.48% year-on-year, indicating that the company is allocating more funds for subsequent capacity expansion.
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