Zhongji Innolight Proposes Up to RMB 8 Billion Buyback, Orders Cover 2026; Tianfu Tongxin Mass Produces 1.6T

Zhongji Innolight Chairman and President Liu Sheng proposed on July 28 that the company use its own or self-raised funds to repurchase some shares through centralized bidding, with a total repurchase amount of not less than RMB 4 billion and not more than RMB 8 billion. The repurchased shares are intended for equity incentives or employee stock ownership plans.

In a conference call that evening, Zhongji Innolight said its current orders on hand cover the full year 2026, with some customer orders already placed through 2027. Delivery plans are detailed on a monthly basis. The company pointed out that overall demand in the optical module industry is currently very strong, raw materials are tight, and delivery of 1.6T products is constrained, with only a few manufacturers capable of large-scale delivery. The company emphasized that industry demand in 2027 has strong certainty, and products such as 800G, 1.6T, 2.4T, and NPO are growing rapidly, with some key customers already providing guidance for new products in 2028.

Zhongji Innolight responded to market rumors of a sharp price decline for 1.6T optical modules, stating that the company's average selling price for 1.6T is far higher than the market rumors, and there is no vicious competition in the industry. The company is confident in maintaining stable gross margins. It said it has deployed a single-wave 200G*4 channel product, which has higher technical content and significantly higher price and gross margin than the single-wave 100G product.

The company said its performance growth is mainly driven by the continuous construction of global artificial intelligence computing infrastructure, strong demand for high-speed optical modules, and an increased proportion of high-end product shipments. The company is advancing production capacity construction at its two major bases in Chengdu and Thailand, and has locked in material resources with core suppliers in advance.

Tianfu Tongxin said its current orders on hand are very abundant, with the main constraint on delivery coming from upstream material supply, especially high-speed optical chips and other scarce industry materials. The company is simultaneously promoting the construction of three production bases in Suzhou, Jiangxi, and Thailand, and is supporting subsequent order delivery and business expansion by strengthening R&D and mass production capabilities and improving overseas production capacity layout.

Tianfu Tongxin has technical reserves in the areas of CPO (co-packaged optics) and NPO (near-packaged optics). Its FAU and ELS products for CPO are in the delivery stage, and its 1.6T optical engine has entered the stage of large-scale mass production.