July 30th report: Just now, an A-share listed company, a leading manufacturer of optical modules in Shandong...InnoLight Technology Co., Ltd.(Abbreviated as "Zhongji Xuchuang")Officially listed on the Hong Kong Stock ExchangeIt has acquired dual listing status in both A-shares and H-shares.
During the release phase,The issue price of Zhongji Xuchuang's H shares was HK$980.(Approximately RMB 845.58). Based on the issue price of HKD 980 per share, the total funds raised by the company in this underlying H-share offering are approximately...HK$53.4 billion(Approximately RMB 46.075 billion), becoming the largest Hong Kong IPO in 2026 to date.The largest IPO project.
At the opening bell today, InnoLight Technology's stock price was HK$971 per share (approximately RMB 838.06), down about 0.92% from the offering price. As of 9:43:04 AM, the stock price was HK$953 per share (approximately RMB 822.52), down 2.76% from the offering price, with a total market capitalization of approximately HK$1.11 trillion (approximately RMB 958.026 billion).
▲Chart of Zhongji Xuchuang's Hong Kong Stock Price (Source: Tencent Stock Selection)
Founded in 2005, InnoLight Technology's core product is optical modules, which enable massive data transmission by converting electrical signals to optical signals. InnoLight has built a complete product matrix covering specifications from 10G to the cutting-edge 1.6T, capable of meeting various customer needs, and is the preferred partner for most leading cloud service providers and AI computing solution vendors worldwide.
InnoLight Technology is also the first company in the optical interconnect industry to implement silicon photonics integration technology and achieve mass production. The company launched 400G optical modules, 800G optical modules and 1.6T optical modules in 2018, 2020 and 2023 respectively. It was the first to commercialize the industry's three generations of mainstream high-speed optical modules.
In the A-share market, since May of last year, the share price of Zhongji Xuchuang has soared from around 83 yuan per share to a peak of 1416.88 yuan per share in June of this year, but subsequently fell sharply. As of the closing on July 29 this year, the share price of Zhongji Xuchuang was 951 yuan per share.The premium over the offering price is approximately 12.47%.The total market capitalization is1.06 trillion yuanAt the opening of trading today, its A-share price was 919.01 yuan per share; as of 9:44:12, its latest price was 893 yuan per share, down 6.1%, with a total market capitalization of 995.905 billion yuan.
▲ Zhongji Xuchuang A-share stock price chart (Source: Tencent Stock Selection)
In this offering by Zhongji Xuchuang, the number of shares offered to the public in Hong Kong was 5.45 million, accounting for 10% of the total global offering, and was oversubscribed by 16.84 times; the number of shares offered internationally was 49.05 million, accounting for 90% of the total global offering, and was oversubscribed by 9.73 times.
Zhongji Xuchuang's Hong Kong IPO attracted several well-known cornerstone investors, who were allocated a total of 2,724.94 million shares, representing approximately 50% of the global offering. These cornerstone investors include JPMIMI, JPMMAPL, BlackRock, Wellington, Boyu Capital, IDG Capital, Alibaba, and Tencent.
The company will allocate approximately 35% of the funds raised to the research and development of optical interconnect products over the next five years; approximately 30% to expand global production capacity to support product iteration and upgrades; approximately 10% to strengthen the supply chain's resilience and commercialization capabilities over the next five years; approximately 15% to strategic mergers and acquisitions and industrial investments; and the remaining approximately 10% to the company's working capital and daily operating expenses.
According to Frost & Sullivan, the time it took for Zhongji Xuchuang to achieve large-scale mass production and delivery of the aforementioned products was shorter than that of its second-tier competitors in the industry.Leading by about six monthsMeanwhile, starting in 2021,InnoLight Technology has been the world's number one optical interconnect solutions provider in terms of revenue for five consecutive years..
In 2025, the company held a 21.2% share of the global overall optical interconnect solutions market and a 28.1% share of the high-speed data communication optical interconnect solutions segment; in the same year, the company became the world's largest supplier of silicon photonics modules.
According to data from Frost & Sullivan, as of March 31, 2026, InnoLight Technology has served leading global cloud service providers and AI computing solution providers. During the track record period, the company derived the majority of its revenue from the US market, and its clients include…Cloud service providers and AI computing solution providersMainly includesNvidia,Google,AWS,MicrosoftandMeta.
01.
Revenue exceeded 72.8 billion in three years.
High-speed optical modules are high-margin products.
In 2023, 2024 and 2025, InnoLight Technology's revenue was RMB 10.718 billion, RMB 23.862 billion and RMB 38.24 billion respectively, totaling over RMB 72.8 billion over the three years; net profit was RMB 2.208 billion, RMB 5.372 billion and RMB 11.58 billion respectively; R&D expenses were RMB 739 million, RMB 1.244 billion and RMB 1.615 billion respectively.
In the first quarter of 2026, InnoLight Technology's revenue, net profit and R&D expenses were RMB 19.496 billion, RMB 6.317 billion and RMB 645 million, respectively.
▲ Changes in InnoLight Technology's revenue, profit this year, and R&D expenditure (Chart by ChipThings)
By product category, InnoLight Technology's revenue from optical module business was RMB 10.182 billion, RMB 22.886 billion, RMB 37.457 billion, and RMB 19.338 billion in 2023, 2024, 2025, and the three months ended March 31, 2026, respectively. The growth was mainly driven by...High-speed optical moduleSales volume drove revenue growth; in the first quarter of 2026, InnoLight Technology's high-speed optical modules contributed nearly 95% of its revenue.
From 2023 to 2025, InnoLight Technology's revenue from mainland China has steadily increased year by year; the US market is the company's core source of revenue, with revenue increasing significantly year by year.
In 2023, 2024, 2025, and the three months ended March 31, 2026, the gross profit margin of InnoLight's optical module business was 32.8%, 34.1%, 42.1%, and 45.8%, respectively. The continuous increase in gross profit margin is mainly due to the increasing revenue share of InnoLight's high-margin high-speed optical modules, whose gross profit margin is significantly higher than that of medium- and low-speed optical module products.
Compared with Chengdu Xinyisheng Communication Technology Co., Ltd. (hereinafter referred to as "Xinyisheng"), an optical module R&D company, the gross profit margin of Zhongji Xuchuang's optical communication transceiver modules in 2025 was 42.61%, slightly lower than Xinyisheng's gross profit margin of 47.81% for optical interconnect products in the same year.
02.
There are 2,292 R&D personnel.
Optical module products cover specifications from 100G to 1.6T.
InnoLight Technology has established a global business network, relying on a strategic layout of five production bases, four R&D centers, and multiple branches, with its business spanning the globe. In terms of overseas business, the company has offices in Singapore and the United States, primarily responsible for R&D, sales, and customer service; InnoLight Technology has also built a production base in Thailand.
The company has a first-mover advantage in the silicon photonics technology track. This technology can optimize product performance, simplify the optical module packaging process, and improve the flexibility of raw material procurement. InnoLight Technology is also actively developing core strategic tracks of optical interconnect that are in line with the mainstream development direction of the industry, including coherent solutions, co-packaging technology (CPO), and low-power technology solutions.
For many years, InnoLight Technology has continuously optimized and expanded its product portfolio. Its 400G optical module, 800G optical module, and 1.6T optical module, launched in 2018, 2020, and 2023 respectively, were all industry firsts. The company's products possess numerous advantages, including miniaturization, high bandwidth, low latency, and low power consumption. The timeline of the initial public release of these products is shown in the following figure:
Optical modules are a core product of InnoLight Technology, a company specializing in a diversified portfolio of optical modules ranging from 100G to cutting-edge 1.6T. The core function of its optical modules is to convert electrical signals to optical signals in fiber optic communication systems, thereby enabling high-speed data transmission within fiber optic networks. The specific features and application scenarios of InnoLight's optical module products are shown in the following figure:
As of December 21, 2025, InnoLight Technology Co., Ltd. possessed...2169 peopleResearch and development personnel account for approximately [percentage missing] of the total number of employees.18.66%As of March 31, 2026, InnoLight Technology Co., Ltd. possessed...2292 peopleThe number of full-time R&D personnel has increased compared to the end of last year, including more than 1,700 professional R&D personnel with an average of nine years of industry experience.
As of March 31, 2026, the company had a total of [number missing] companies in China and overseas.506 itemsAuthorized patents, 20 copyrights, and 148 trademarks.
03.
High customer concentration
The top five customers and suppliers overlap.
For the years 2023, 2024, 2025, and the three months ended March 31, 2026, Zhongji Xuchuang's revenue from...Top five customersThe total revenues were RMB 8.039 billion, RMB 18.41 billion, RMB 29.056 billion, and RMB 15.957 billion, respectively, accounting for 75%, 77.2%, 76%, and 81.9% of the total revenues in the corresponding periods.
In 2023, 2024, and 2025, InnoLight's revenue from its largest customer, Customer A, was RMB 3.891 billion, RMB 5.444 billion, and RMB 9.202 billion, respectively, accounting for 36.3%, 22.8%, and 24.1% of total revenue. According to information released by InnoLight, Customer A is a Nasdaq-listed technology company headquartered in the United States, primarily engaged in online platform operation and cloud computing. Its cooperation with InnoLight began in 2011, leading to speculation that Customer A may be Google.
Customer B is a Nasdaq-listed technology company headquartered in the United States, whose main business is computing and artificial intelligence-related solutions. In the first quarter of 2026, this customer contributed 4.889 billion yuan in revenue, surpassing Customer A and becoming InnoLight Technology's largest customer in that quarter. It can be inferred that this customer may be Nvidia.
Zhongji Xuchuang's client C is a Nasdaq-listed technology company headquartered in the United States, whose main business is online platform operation and digital advertising services. It can be inferred that this client may be Meta.
Zhongji Xuchuang has a diverse range of suppliers, with each of its core raw materials sourced from three or more qualified suppliers. These suppliers include companies such as Shaanxi Yuanjie Semiconductor Technology Co., Ltd. and Suzhou Tianfu Optical Communication Co., Ltd.
In 2023, 2024, 2025, and the three months ending March 31, 2026, Zhongji Xuchuang provided various phases of funding.Top five suppliersThe total procurement amounts were RMB 3.44 billion, RMB 8.764 billion, RMB 12.797 billion, and RMB 6.639 billion, respectively, accounting for 52%, 53.6%, 51.5%, and 52.4% of the total procurement amount in the corresponding periods.
During the reporting period, the amount of purchases made by Zhongji Xuchuang from its largest supplier was RMB 2.14 billion, RMB 6.164 billion, RMB 8.886 billion, and RMB 4.855 billion, respectively, accounting for 32.4%, 37.7%, 35.8%, and 38.3% of the total purchase amount.
During the performance record period, InnoLight Technology mainly purchased raw materials such as electronic chips and optical chips from US suppliers. The corresponding purchase amounts accounted for 5.4%, 3.8%, 5.5%, and 9.8% of the total purchase amount for the whole year of 2023, 2024, 2025, and the first quarter of 2026, respectively.
One of Zhongji Xuchuang's top five suppliers was also a customer of the company in 2024, 2025, and the first quarter of 2026. In 2023, 2024, 2025, and the three months ended March 31, 2026, Zhongji Xuchuang's revenue from this overlapping customer/supplier was RMB 0, RMB 1.401 billion, RMB 1.19 billion, and RMB 1.258 billion, respectively; during the same periods, Zhongji Xuchuang's purchases from this customer/supplier amounted to RMB 347 million, RMB 48 million, RMB 62 million, and RMB 133 million, respectively.
04.
"Snake swallowing elephant" acquisition of Suzhou Xuchuang
Entering the optical communication field from traditional mechanical manufacturing
Prior to the completion of the global offering, InnoLight Technology's simplified equity and corporate structure (assuming no new shares were issued under the restricted stock incentive plan, and that the company's issued share capital remained unchanged from the latest practicable date to the listing date) is shown in the following diagram:
Zhongji XuchuangSingle largest shareholder groupThis includes Wang Weixiu, the founder of Shandong Zhongji Investment Holding Co., Ltd. (hereinafter referred to as "Zhongji Holding"), Longkou Zhongji Zhiyuan Investment Management Center (hereinafter referred to as "Longkou Zhongji Zhiyuan"), and Longkou Zhongji Electrical Machinery Co., Ltd., and Wang Weixiu's son, Wang Xiaodong. Longkou Zhongji Electrical Machinery Co., Ltd. is the predecessor of Zhongji Xuchuang.
As of July 14, Zhongji Holdings held approximately [amount missing] shares in Zhongji Xuchuang.10.89%Of the shares, Wang Weixiu, Longkou Zhongji Zhiyuan, and Wang Xiaodong hold 52.06%, 28.66%, and 19.28% of the equity in Zhongji Holdings, respectively; Wang Weixiu directly holds approximately [amount missing] shares in Zhongji Xuchuang.6.25%Wang Xiaodong directly holds approximately [amount] shares.0.19%.
In summary, as of July 14, the single largest shareholder group of Zhongji Xuchuang held a total of [percentage missing] of the company's issued share capital.17.34%Zhongji Holdings is the controlling shareholder of Zhongji Xuchuang, and Wang Weixiu is the actual controller of Zhongji Xuchuang.
Wang Weixiu was born in 1950 and graduated from Yantai University. In 1987, Wang Weixiu founded Longkou Zhenhua Electrical Equipment Factory. He is a renowned expert in motor winding manufacturing equipment and developed China's first automated assembly line for washing machine motors, breaking the foreign technology monopoly.
In 2017, he spearheaded the acquisition of Suzhou Accelink by Zhongji Equipment in a "David and Goliath" deal, successfully transforming the company from traditional machinery manufacturing to the optical communication field. After the acquisition, he handed over full control of the company's operation and management to Liu Sheng, the founder of Suzhou Accelink, and stepped down from the front line.
▲Wang Weixiu (Image source: Shandong Finance)
Liu Sheng is the Chairman, Executive Director, and President of Zhongji Xuchuang. He is 54 years old and primarily responsible for the group's overall strategic planning, business development, and operational management. Currently, Liu Sheng also serves as a director in several of Zhongji Xuchuang's subsidiaries (including TeraHop Pte).
Liu Sheng obtained a Bachelor of Science degree in Mechanical Engineering from Tsinghua University in July 1994, a Master of Science degree in Industrial Automation from the Institute of Automation, Chinese Academy of Sciences in July 1997, and a Ph.D. in Mechanical Engineering from Georgia Institute of Technology in May 2001.
In April 2008, Liu Sheng founded Suzhou Xuchuang and served as its executive director and general manager until July 2024. In July 2017, he joined Zhongji Xuchuang as its general manager; in September of the same year, Liu Sheng was appointed as a director; in August 2023, he was elected chairman of Zhongji Xuchuang; in January of this year, Liu Sheng was transferred to the company as an executive director, an appointment that took effect from the listing date.
▲Liu Sheng (Image source: Baidu Encyclopedia)
In 2023, 2024, 2025 and the first quarter of 2026, the remuneration paid by Zhongji Xuchuang to its directors and supervisors was RMB 14 million, RMB 22 million, RMB 20 million and RMB 3.829 million, respectively; in the first quarter of 2026, Liu Sheng's total remuneration was RMB 1.755 million.
05.
Conclusion: The AI computing power dividend drives rapid revenue growth.
The space for domestic substitution of optical modules continues to expand.
With its listing on the Hong Kong Stock Exchange, Zhongji Xuchuang has officially established a dual-listed capital structure in both A-shares and H-shares. Leveraging this large-scale fundraising, the company will receive financial support to support its overseas capacity expansion and cutting-edge technology research and development.
With the continuous expansion of global AI computing power and the continuous upgrading of data centers, high-speed optical modules have gradually become a core necessity in the industry. At the same time, the industry is shifting to a development stage centered on high-end technology and high-value-added products, and the market advantages and growth space of leading domestic optical module companies continue to expand.
In the long run, the continuous expansion of AI computing infrastructure will bring certain benefits to the optical interconnection sector. Relying on the technological and scale leadership of leading domestic companies such as InnoLight Technology, as well as the continuous R&D investment and product commercialization of domestic companies, the industry's voice in the domestic optical module industry will continue to improve, and the incremental space of the domestic optical module market will continue to open up.