Zhongji Xuchuang's performance to double by 2025

◎Reporter Wang Kaifeng

On the evening of March 30, InnoLight (mentioned as the leading optical module company) released its 2025 annual report. During the reporting period, the company achieved revenue of RMB 38.24 billion, up 60.25% year over year; attributable net profit of RMB 10.797 billion, up 108.78% year over year; and non-recurring profit and loss (adjusted) net profit of RMB 10.710 billion, up 111.32% year over year. After the company delivered “double growth” in both revenue and net profit in 2024, its performance hit the highest level since listing.

While maintaining high growth, InnoLight has continued to reward investors with substantial cash dividends. The company plans to distribute a cash dividend of RMB 10 per 10 shares (including tax), for a total planned cash dividend of RMB 1.111 billion. Together with the RMB 444 million interim dividend, the company’s total cash dividends for full-year 2025 will reach RMB 1.556 billion.

InnoLight stated that during the reporting period, benefited from strong capital expenditure by end customers on computing power infrastructure, its product shipments grew rapidly. The share of high-speed optical modules continued to increase, and as product solutions were continuously optimized and operating efficiency further improved, both operating revenue and net profit rose significantly compared with the same period last year.

Optical modules are an important part of the network layer in AI investment. As a leading global supplier of optical modules, the financial report shows that in 2025, the company’s optical transceiver module products achieved revenue of RMB 37.456 billion, up 63.67% year over year. The company’s products mainly serve countries and regions such as North America and Europe. Revenue from overseas regions accounts for more than 90%.

Judging from profit performance, the company’s net profit growth rate is nearly double its revenue growth rate. This is mainly because the profitability delivered by core products has continued to improve. Data show that in 2025, the company’s optical communications transceiver module products had a gross margin of 42.61%, up sharply from 34.65% in 2024.

Research and development innovation is a core moat in the optoelectronics industry, and also the underlying support for InnoLight’s sustained high growth performance. During the reporting period, the company continued to increase R&D efforts. Full-year R&D investment reached RMB 1.676 billion, up 25.77% year over year; of which R&D expenses were RMB 1.615 billion, up 29.84% year over year. By the end of 2025, the company’s number of R&D personnel totaled 2,169, up 49.28% year over year.

Annual report analysis said that in the next three years, demand for high-speed optical modules such as 800G and 1.6T will occupy a dominant position in the market. Optical modules of 3.2T are expected to begin ramping up gradually starting in 2028. According to Lightcounting’s prediction, in 2026, 800G and 1.6T optical modules will see rapid volume growth, and the combined market size is expected to reach USD 14.6 billion, accounting for about 64% of the overall optical module market size.

InnoLight said it will leverage its existing advantageous resources to continue developing its high-speed optical transceiver module business, while maintaining focus on core markets such as AI data centers. It will further increase investment and research in core products or technologies such as 1.6T, 3.2T and higher-speed optical modules, silicon photonics, coherent technologies, and more, to drive the development of next-generation optical interconnect technology.

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