Eoptolink Technology Inc Ltd

The Ministry of Industry and Information Technology released the 15th Five-Year Plan for the development of the information and communications industry, setting the goal of building a new-generation communications network by 2030, with cumulative investment in information infrastructure reaching 3.8 trillion yuan, and the target for intelligent computing power jumping from 1,590 exaflops to 9,800 exaflops. It also proposed launching 6G commercial use at an appropriate time and advancing 6G standard development and technical trials. Driven by this industry catalyst, the Shanghai Composite Index fell 1.18% in the previous trading session, while the communications sector rose 0.63% against the trend. The Southern Fund's Communications ETF saw a turnover rate of 6.93% and turnover of 24 million yuan, while the CSI Communications Services Index it tracks gained 0.63%. At the industry level, institutional data shows that the communications sector rose 73.59% in the first half of 2026, significantly outperforming the CSI 300. Shipments of 800G optical modules continued to expand, and 1.6T entered the early stage of large-scale deployment. Third-party institutions forecast that the global AI optical module market will reach 26 billion US dollars in 2026. In addition, on September 11, the US Federal Communications Commission finalized relevant rules, and several leading domestic optical module makers such as Zhongji Innolight and Eoptolink were not included for the time being, easing overseas policy concerns.

Eoptolink said in an institutional survey that, based on current customer demand guidance and orders, industry prosperity is expected to remain high, with 1.6T and 800G as the main products delivered this year. Shipments of 800G products have continued to rise and have become the main delivery product, and the company expects the pace of 1.6T optical module volume shipments to accelerate further in the second half of the year. The company also said the share of silicon photonics products continues to increase with strong growth momentum, which is expected to continue next year. For near-packaged optics products, relevant teams have been continuously following up on research and development and customer cooperation, with batch order delivery demand expected in 2027 and further scaling of shipments in 2028. In company news the same day, Zhipu AI announced it has completed about $5 billion in financing, including about $2 billion in share placement and about $3 billion in convertible bond issuance. The funds raised will mainly be used for the next-generation GLM foundation model, a fully self-trained system, and the computing power resources and technical infrastructure required for large-scale training and production inference. Zhongju Semiconductor's investee company Jingheng Xidao plans to sign an investment agreement with the Quzhou Intelligent Manufacturing New City Management Committee to invest about 1.1 billion yuan through a wholly owned subsidiary to build a project with annual output of 2,220 tons of high-purity quartz materials. The project will be built in two phases, with the first phase building a project with annual output of 720 tons of high-purity quartz materials and a total planned investment of about 333 million yuan. Hongqiao Holdings plans to acquire 100% equity of Yunnan Hongqiao New Energy and Yunnan Xinchuang in cash through its subsidiary Yunnan Hongqiao New Materials, with a total transaction price of about 2.05 billion yuan. Inspur Electronic Information intends to raise no more than 9 billion yuan through a private placement, and Hongchang Electronics intends to raise no more than 1.8 billion yuan through a private placement.

On the afternoon of September 1, the co-packaged optics sector rebounded, with multiple stocks rallying together. Qingshan Paper hit the daily limit during trading, extending a strong run of 4 limit-ups in 6 sessions, then briefly broke the limit before sealing it again. As of press time, it was up 9.97%. Optical module leaders Zhongji Innolight and Eoptolink climbed, with turnover for both exceeding 10 billion yuan each, ranking first and second among A-shares. On the news front, on the evening of August 31, Zhongji Innolight announced plans to use its own or self-raised funds to repurchase company shares through centralized bidding, with a total repurchase amount of no less than 4 billion yuan and no more than 8 billion yuan, at a price not exceeding 1,200 yuan per share. The company expects to repurchase about 3.33 million to 6.67 million shares, accounting for roughly 0.28% to 0.57% of total share capital, and the repurchased shares will be used for equity incentives or employee stock ownership plans. Guotai Haitong Securities believes that AI computing demand continues to expand, and high-speed optical modules are entering a new cycle of capacity expansion and product upgrades. The global optical module market is expected to grow from 126.7 billion yuan in 2024 to 295.4 billion yuan in 2029, a compound annual growth rate of 18.5%.

Eoptolink Technology has released its 2026 interim report. The company's total operating revenue was 20.91 billion yuan, net profit attributable to the parent company was 7.529 billion yuan, and net cash inflow from operating activities was 1.616 billion yuan. The company's latest asset-liability ratio was 33.24 percent, up 2.20 percentage points from the previous quarter. Its latest gross margin was 48.44 percent, down 0.72 percentage points from the previous quarter. Its latest return on equity was 30.99 percent, down 1.61 percentage points from the same period last year. Diluted earnings per share were 5.41 yuan, and the latest total asset turnover was 0.67 times, down 2.80 percent from the same period last year. The company had 257,100 shareholders, and the top ten shareholders held 366 million shares, accounting for 26.22 percent of total share capital.

The three leading A-share optical module companies, Eoptolink, Zhongji Innolight, and Suzhou TFC Optical Communication, have all disclosed their 2026 half-year reports, with combined net profit attributable to shareholders totaling 22.384 billion yuan. Eoptolink reported first-half revenue of 20.91 billion yuan, up 100.34 percent year on year, and net profit attributable to shareholders of 7.529 billion yuan, up 90.98 percent. Zhongji Innolight posted revenue of 41.778 billion yuan, up 182.49 percent, and net profit attributable to shareholders of 13.651 billion yuan, up 241.7 percent. Suzhou TFC Optical Communication recorded revenue of 2.828 billion yuan, up 15.15 percent, and net profit attributable to shareholders of 1.204 billion yuan, up 33.92 percent. Zhongji Innolight said that in the past the optical module industry typically signed three-month orders, but many customers have now placed orders extending into 2027. Well-known retail investor Zhang Jianping became Zhongji Innolight's ninth-largest shareholder in the second quarter, holding 5.9348 million shares, or 0.53 percent of total share capital.

Eoptolink released its 2026 half-year report, achieving operating revenue of 20.91 billion yuan, up 100.34 percent year on year, and net profit attributable to shareholders of the listed company of 7.529 billion yuan, up 90.98 percent year on year. The performance growth mainly benefited from the development of artificial intelligence computing power investment. The company plans not to distribute cash dividends, not to issue bonus shares, and not to convert capital reserve into share capital. In addition, Enflame Technology plans to issue 43.0352 million shares, with online and offline subscription dates on September 2. Ganfeng Lithium signed an agreement with LAR to jointly develop the PPGS lithium salt lake project, with total designed production capacity of 150,000 tonnes of lithium carbonate equivalent per year. AVIC Xi'an Aircraft Industry Group is planning a private placement for military and civil aircraft development and production capacity improvement projects.

On the evening of August 24, several listed companies on the Shanghai and Shenzhen stock exchanges released positive announcements. Far East Smarter Energy's subsidiary Far East Electric plans to acquire an 80% stake in Huizhou Fudewangwang Industrial Development for 216 million yuan, after which Fudewangwang will be consolidated into its financial statements. Eoptolink Technology disclosed its half-year report, with operating revenue of 20.91 billion yuan in the first half of 2026, up 100.34% year on year, and net profit attributable to shareholders of the listed company of 7.529 billion yuan, up 90.98% year on year. CIG Shanghai's first-half net profit was 328 million yuan, up 171.08% year on year, and it plans to pay a dividend of 0.9 yuan per 10 shares. Chengxin Lithium Group's first-half net profit was 1.012 billion yuan, turning from a loss of 841 million yuan in the same period last year. Silan Microelectronics' first-half net profit was 516 million yuan, up 94.84% year on year. Zhangyuan Tungsten's first-half net profit was 688 million yuan, up 497.38% year on year. Gotion High-tech's first-half net profit was 1.386 billion yuan, up 278.05% year on year. Western Gold's first-half net profit was 547 million yuan, up 315.67% year on year, and it plans to pay a dividend of 0.5 yuan per 10 shares. At its results briefing, DSBJ stated that its 1.6T optical module products have already been supplied to customers.

On the evening of August 24, multiple listed companies on the Shanghai and Shenzhen stock exchanges released important announcements. Dongshan Precision stated during its results briefing that its 1.6T optical module products have been supplied to customers, but due to commercial confidentiality, specific order information cannot be disclosed. Far East Smarter Energy's subsidiary plans to acquire 80% equity of Fudewangwang for 216 million yuan; Topstar Technology plans to acquire 49% equity of Lailer Optoelectronics for 147 million yuan; the merger and restructuring plan between Orient Securities and Shanghai Securities was approved by an overwhelming majority at the shareholders' meeting. In terms of performance, Eoptolink Technology's net profit in the first half of the year was 7.529 billion yuan, up 90.98% year-on-year; CIG Shanghai's net profit grew 171.08% year-on-year; Chengxin Lithium Group turned losses into profits year-on-year; Sinomine Resource Group's net profit surged 1146.81% year-on-year; Luxshare Precision's net profit rose 18.04% year-on-year. In addition, Genew Technologies' actual controller plans to increase holdings of company shares by 15 million to 30 million yuan, Selon Industrial plans to repurchase shares worth 30 million to 60 million yuan, Donghong Pipe Industry pre-won a steel pipe procurement project worth 144 million yuan, Longjian Road & Bridge jointly won a 333 million yuan engineering project, and Gangdi Technology's wholly-owned subsidiary signed a smart control system procurement contract worth approximately 230 million yuan with Huadong Heavy Machinery.

Optical module leader Eoptolink released its 2026 restricted stock incentive plan, with a performance target of cumulative operating revenue of no less than 290 billion yuan from 2026 to 2028. The announcement shows the company plans to grant 6.4812 million restricted shares, accounting for 0.4648 percent of total share capital, at a grant price of 212 yuan per share, with an initial grant of 5.1852 million shares to no more than 961 incentive recipients. Based on the assessment target, revenue would need to reach 50 billion yuan in 2026, expand to 90 billion yuan in 2027, and reach 150 billion yuan in 2028, corresponding to year-on-year growth rates of roughly doubling, 80 percent, and 67 percent respectively. Industry insiders noted that on the basis of 24.8 billion yuan in revenue in 2025, this target is quite aggressive and not easy to achieve, but as the world's second-largest high-speed datacom optical module maker, the company is deeply tied to major overseas customers such as Meta, Google, and Microsoft, has already begun volume deliveries of 1.6T products, and continues to expand production at its Thailand plant, giving it a certain foundation for achieving the goal. Sinolink Securities expects the company's revenue from 2026 to 2028 to be 72.9 billion yuan, 179.1 billion yuan, and 236.4 billion yuan respectively, with institutional sentiment leaning optimistic. As of the midday close on August 21, Eoptolink closed at 436.5 yuan, surging 5.43 percent.

As of 10:22 a.m. on August 4, 2026, the CSI Communication Services Index briefly surged over 5% and is now up 4.48%. Communication ETF Southern recorded intraday turnover of 9.24%, with trading volume reaching 32.101 million yuan. In related news, the China Academy of Information and Communications Technology estimates that China's artificial intelligence industry scale exceeded 1.2 trillion yuan in 2025, up 40% year-on-year. As of June 2026, the number of AI enterprises surpassed 6,600, accounting for 15% of the global total. Institutional research reports note that capital expenditure by the four major North American cloud providers maintained rapid growth in the second quarter of calendar year 2026, with several further raising their full-year 2026 guidance. Optical interconnects, as a critical link in cluster networks, will continue to grow at a high speed, and the medium- to long-term outlook for the optical communication sector is positive. Communication ETF Southern closely tracks the CSI Communication Services Index, with its top ten holdings including Zhongji Innolight, Eoptolink, and TFC Communication.

The Shanghai Composite Index closed higher today, supported by a surge in semiconductor stocks and artificial intelligence-related shares. The index ended at 3,832.26 points, up 27.57 points or 0.72 percent. Stocks that posted strong gains included Cambricon Technologies, which jumped 6.10 percent, Zhongji Innolight, which rose 4.40 percent, and Eoptolink Technology, which soared 6.71 percent. On the economic data front, China's National Bureau of Statistics reported that the manufacturing purchasing managers' index fell to 49.2 in July from 50.3 in June, missing analyst expectations of 50. The non-manufacturing PMI came in at 49, the lowest level since December 2022 and down from 50.2 in June. A reading below 50 indicates that both China's manufacturing and services sectors are in contraction. Meanwhile, the Political Bureau of the Communist Party of China held its July meeting, emphasizing plans to further deepen capital market reforms while strengthening market resilience and investor confidence.

The Board of Investment has revealed that over the past five years, 79 investment projects in the photonics industry have applied for promotion, with a combined value exceeding 82.7 billion baht, reinforcing Thailand's potential as a regional production base for advanced photonics and electronics technology. BOI Secretary General Narit Therdsteerasukdi stated that these projects span from the production of optical fiber cables, with 12 projects worth 13.7 billion baht, to the manufacturing of components and equipment, with 47 projects worth 19.5 billion baht, and complete optical communication products, with 20 projects worth 49.4 billion baht. Leading global companies such as Lumentum, Celestica, Fabrinet, Terahop, and Eoptolink Technology have chosen Thailand as a key production base, generating total employment of over 20,000 people. The majority of projects, 60 percent, are located outside the Eastern Economic Corridor, particularly in Phra Nakhon Si Ayutthaya, Pathum Thani, and Saraburi, helping to spread prosperity and create high-skilled jobs nationwide.

Private equity research activity has remained brisk since July. As of July 29, a total of 664 private securities fund managers had researched 280 A-share stocks, making 1,469 visits in total. Among them, 58 funds managing over 10 billion yuan researched 125 stocks across 306 visits. The electronics sector was the focus, with private equity firms researching 64 stocks in the industry for a combined 543 visits, accounting for 37.37% of all private equity research visits. Among the billion-yuan funds, Panjing Investment led with 25 visits, followed by Springs Capital with 20 visits. Gaoyi Asset Management and Yuanxin Investment also ranked in the top ten. At the stock level, optical chip maker Yuanjie Technology was researched by 101 private equity firms, including 23 billion-yuan funds. Optical module leader Eoptolink was researched by 92 private equity firms, including 24 billion-yuan funds. In addition, Hikvision's earnings briefing attracted well-known private equity figures such as Qiu Guogen of Chongyang Investment, and Deng Xiaofeng and Feng Liu of Gaoyi Asset Management.

The Shanghai Composite Index closed higher today at 3,858.25 points, up 44.05 points or 1.15 percent, supported by buying in technology and chip stocks. Leading the gains, Shengyi Technology surged 6.13 percent, Eoptolink Technology rose 3.15 percent, Zhongji Innolight added 2.91 percent, NAURA Technology gained 1.72 percent, and Cambricon Technologies advanced 1.31 percent. The uptick helped offset negative sentiment from China's June industrial profits report, which showed growth of just 15.1 percent year-on-year, slowing from May's 21.1 percent expansion and marking the slowest growth rate since the start of the year. Industrial profits for the first six months rose 18.7 percent year-on-year, edging down slightly from the 18.8 percent increase in the first five months.

After the recent sharp pullback in China's A-share tech sector, analysts point out that the underlying logic supporting the tech bull market remains intact, and the correction has instead provided more cost-effective positioning opportunities. They recommend focusing on dip-buying chances in optical communications, semiconductor equipment, and commercial aerospace. In optical communications, the computing power race driven by generative AI continues, with the peak shipment cycle for 800G products and the upgrade cycle to 1.6T approaching. Chinese manufacturers hold solid global competitive advantages. Eoptolink Technology expects first-half net profit attributable to shareholders of 7 billion to 8 billion yuan, up 77.56% to 102.93% year-on-year. Suzhou TFC Optical Communication expects first-half net profit attributable to shareholders of 1.124 billion to 1.304 billion yuan, up 25% to 45% year-on-year. Industrial Securities analyst Zhang Lin remains bullish on the sector and suggests paying attention to Zhongji Innolight, Eoptolink Technology, Suzhou TFC Optical Communication, and Sinopower Electronics. The semiconductor equipment industry maintains high prosperity. SEMI forecasts that global total sales of semiconductor manufacturing equipment will reach a record high of 165.9 billion US dollars in 2026, up 23.2% year-on-year. Ping An Securities analyst Yang Zhong recommends Naura Technology, Advanced Micro-Fabrication Equipment, Tuojing Technology, Hwatsing Technology, Skyverse, and Leadmicro. In the commercial aerospace sector, after valuation compression, policies continue to advance, rocket recovery technology matures, and launch costs decline. Zheshang Securities analyst Peng Lei believes China's commercial aerospace is poised to enter a rapid growth phase, with 2026 potentially becoming a dense year for recovery verification. Shanghai Hanxun, China Aerospace Times Electronics, ST Zhenlei, Chengchang Technology, Maxwell Technologies, and Sunway Communication are widely favored.

The Shanghai Composite Index closed higher today after China's State Council pledged to implement policies to keep economic growth on track for the full year 2026. The index closed at 3,864.37 points, up 68.09 points or 1.79 percent. Chinese authorities also rolled out support measures for the technology sector, helping Cambricon Technologies surge 11.58 percent, SMIC jump 11.2 percent, Eoptolink Technology climb 7.25 percent, and Zhongji Innolight rise 2.51 percent.

Asia Plus Securities research reports that four major Chinese technology and automotive companies are preparing to expand investments in Thailand worth a combined 70 billion baht this year, focusing on two future industries: AI and data center technology, where Innolight Technology and Eoptolink Technology will expand production bases for optical transceivers to support AI and cloud data center growth, and the electric vehicle industry, where Xiaomi Corporation is considering setting up an EV production base and research and development center in Thailand, while Changan Automobile is moving ahead with expanding production capacity from 100,000 to 200,000 units per year by 2030, along with establishing a regional headquarters and an EV R&D center. Stocks expected to benefit include industrial estate groups such as AMATA, WHA, ROJNA, and PIN; automotive groups such as AH, SAT, and STANLY; parts groups such as HANA, DELTA, KCE, and SMT; and energy groups such as GULF.

The Thai government has been conducting a roadshow in China, holding talks with four major companies: Changan Automobile, an electric vehicle manufacturer; Innolight Technology and Eoptolink Technology, producers of optical transceiver equipment for data centers and AI; and Xiaomi Corporation, a maker of smartphones and smart home appliances. The expected investment inflow into Thailand could reach as high as 70 billion baht. The BOI has also opened an office in Chengdu, which links the China-Laos-Thailand route, supporting the AMATA industrial estate and CP Group, which participated in the discussions. Meanwhile, WHA benefits from the data center business and the EV supply chain as production bases expand. However, it remains necessary to monitor the US Section 301 tariffs, which will impose a 12.5% levy on July 24, affecting seafood and processed food, though the impact on electronics is still unclear.

Asia Plus Securities, or ASPS, recommends investment strategies for volatile markets, focusing on Energy Hedge plays that benefit from oil prices and geopolitical risks, including PTTEP, BCP, TOP, and IVL, alongside safe-haven stocks. It highlights PTTEP, BCP, and MAGURO as top picks for Thai stocks, while for international exposure it favors BABA80 and SPENGY80. Additionally, it suggests SIRI, GULF, and GFPT as other interesting stocks. ASPS sees an opportunity to rotate investments from AI infrastructure plays to downstream users such as Apple, Meta, Alphabet, Xiaomi, and Alibaba. It also flags the AMD Advancing AI 2026 event on July 23 and the IPO of CXMT on July 27, which could drain liquidity and pressure memory chip prices. On the domestic positive side, the government has attracted over 70 billion baht in foreign direct investment from four major Chinese companies. In the EV sector, Xiaomi is setting up an R&D center and Changan is expanding production capacity to 200,000 units per year by 2030. In AI and data centers, Innolight and Eoptolink are preparing to expand factories in Thailand.

On the morning of July 20, China's three major stock indices opened collectively higher, and the computing power leasing sector quickly surged. Xingyun Technology hit the 20% daily limit up, while Hangzhou Iron and Steel, Inspur Information, and Litong Electronics also hit their daily limit up. Zhongji Innolight, Eoptolink, and Cambricon all rose more than 5%. In terms of news, Goldman Sachs sharply raised its 12-month target price for Zhongji Innolight from 1,187 yuan to 2,581 yuan, maintaining a buy rating. Eoptolink expects its net profit for the first half of 2026 to be between 7 billion and 8 billion yuan, representing year-on-year growth of 77.56% to 102.93%. The liquor sector also saw unusual upward movement, with Weilong Grape Wine hitting the daily limit up. Kweichow Moutai raised the retail price of its 53% vol 500ml Feitian Moutai on the iMoutai platform to 1,639 yuan per bottle starting July 18, marking the third price increase this year.

Ekniti Nitithanprapas, Deputy Prime Minister and Minister of Finance, disclosed that the roadshow in Chengdu led by the Prime Minister and the Minister of Interior exceeded expectations, with anticipated Chinese investment into Thailand reaching 70 billion baht. This comprises 50 billion baht for expanding existing investment bases and over 20 billion baht in new investment. A key factor is geopolitical tensions accelerating capital groups' relocation of production bases to ASEAN, with Thailand as a top target. One-on-one negotiations with four major Chinese companies in electric vehicles and advanced technology were led by Changan Automobile, which has chosen Thailand as its first right-hand-drive vehicle production base outside China and plans to expand capacity to 200,000 units per year, already bringing 40 Thai SMEs into its supply chain. Innolight Technology, a global leader in optical data transmission equipment, is set to expand its production base in Thailand, creating over 20,000 jobs and engaging in joint research with Thai universities involving more than 1,500 Thai engineers. Meanwhile, Eoptolink Technology, the world's second-largest in the same industry, has opened its first factory in Rayong and is expanding a second plant. Xiaomi Corporation, which holds the third-largest smartphone market share in Thailand, is in talks to use Thailand as a production base for smart home appliances, with the government highlighting Thailand's strengths in the smart electronics supply chain to serve regional markets and exports.

At the open on July 20, major A-share indices rallied across the board. The ChiNext Index rose nearly 2%, and the SSE 50 gained over 2%. On the sector front, semiconductors, MLCC concept stocks, CPO concept stocks, memory chips, and optical communications led the gains, while traditional Chinese medicine and white goods were among the laggards. Oil and gas stocks strengthened collectively, with Shandong Molong hitting its daily limit up in a straight line, and Keli Shares and Tongyuan Petroleum following higher. Brent crude topped 91 dollars per barrel, up 3.77% intraday. Computing power leasing concepts were active, with Litong Electronics hitting its daily limit up. In news, Moonshot AI's Kimi suspended new consumer subscriptions to focus on existing subscribers and expand computing power capacity. Kimi concept stocks opened sharply higher, with Jiuan Medical hitting the daily limit up for the fourth time in five sessions, and Mio Exhibition notching its second consecutive limit up. CPO concept stocks fluctuated higher, with Gongjin Shares hitting its daily limit up. Eoptolink Technology expects first-half 2026 net profit of 7 billion to 8 billion yuan, a year-on-year increase of 77.56% to 102.93%. The power sector was repeatedly active, with Huayin Electric Power hitting its second consecutive limit up. Jiangsu's power grid reached a peak load of 157.59 gigawatts, topping the 100-million-kilowatt mark for the tenth consecutive year. In Hong Kong, the Hang Seng Index and Hang Seng Tech Index rose, with Yangtze Optical Fibre and Cable surging over 9% and Alibaba gaining over 5%.

Yuntianhua's wholly-owned subsidiary, Tianju New Materials, plans to invest 1.857 billion yuan to build a 100,000-ton-per-year high-end copolymer formaldehyde resin project in Changshou District, Chongqing. Kweichow Moutai announced that starting from midnight on July 18, 2026, the retail price of Feitian 53% vol 500ml Kweichow Moutai 2026 on the iMoutai platform will be raised from 1,539 yuan per bottle to 1,639 yuan per bottle, and the sales contract price will be raised from 1,269 yuan per bottle to 1,369 yuan per bottle. Zhao Long, the actual controller, chairman, and general manager of Huichen Co., Ltd., has been criminally detained by public security authorities on suspicion of illegal disclosure or non-disclosure of important information. Several companies disclosed their semi-annual performance forecasts, among which Zhiwei Intelligent's net profit increased by 281.92% year-on-year, Xiechuang Data expects net profit to increase by 247.18% to 339.76% year-on-year, and Eoptolink expects net profit to increase by 77.56% to 102.93% year-on-year. TCL Zhonghuan plans to invest approximately 11.96 billion yuan through a controlling subsidiary to build a semiconductor large silicon wafer project for integrated circuits in Shenzhen, and Huike Co., Ltd. plans to invest 4 billion yuan to establish a wholly-owned subsidiary to carry out advanced packaging and testing projects. ST Wenfeng and its controlling shareholder have been placed on file for investigation by the China Securities Regulatory Commission for suspected violations of information disclosure laws and regulations.

Eoptolink has released its 2026 half-year performance forecast, projecting first-half net profit attributable to shareholders of 7 billion to 8 billion yuan, a year-on-year increase of 77.56% to 102.93%. Net profit after deducting non-recurring items is expected to be 6.981 billion to 7.981 billion yuan, up 77.46% to 102.88%. The company said the profit growth was mainly driven by sustained increases in AI computing power investments and product mix optimization. In the first quarter, the company posted revenue of 8.338 billion yuan and net profit attributable to shareholders of 2.78 billion yuan, with the strong momentum continuing into the second quarter. The company also disclosed that orders for its 1.6T optical modules are solid and it is accelerating capacity expansion to meet demand. In the secondary market, Eoptolink shares have been fluctuating at high levels recently, with the latest closing price at 482.88 yuan and a market capitalization of 673.3 billion yuan.

A 22V Research report finds the United States relies on Chinese companies for almost 30% of its imports of AI-related products, with China playing a central role in data center supply chain components such as energy storage, transformers, critical minerals, and chemicals. The report notes that AI-related exports have accounted for about half the growth in China's overall exports this year, and many of the companies are listed in Shenzhen. Among the 10 biggest AI supply chain companies by market cap in the CSI 300 index, nine had at least doubled in the 12 months through May, including printed circuit board makers Victory Giant, Dongshan Precision, and Shengyi Technology, as well as multilayer ceramic capacitor manufacturer Sanhuan Group. On the server side, Foxconn Industrial Internet and Sungrow Power were also on the list, while optical and networking names InnoLight, Eoptolink, and TFC were highlighted by JPMorgan analysts for their role in high-speed data center links. Recent share price gains have pushed InnoLight and Foxconn Industrial Internet into the 1 trillion yuan market cap range.