ZHONGJI INNOLIGHT CO., LTD. - H SHARES

Zhili Fang disclosed its 2026 semi-annual report. In the first half, it achieved operating revenue of 437 million yuan, up 37.73% year on year. Net profit attributable to the parent company was 46.35 million yuan, up 8.07% year on year. Non-GAAP net profit was 38.77 million yuan, up 15.77% year on year. The company's main businesses are semiconductor equipment and automation equipment for electronic products. First-half research and development spending was 45.77 million yuan, up 36.19% year on year, mainly focused on display and pan-semiconductor equipment such as MiniLED and Micro LED, optical communication semiconductor equipment, and IC die bonding and placement semiconductor equipment. In the semiconductor equipment segment, multiple products have broken foreign monopolies and achieved import substitution. First-half semiconductor equipment revenue was 172 million yuan, up 187.58% year on year, with gross margin up 9.84 percentage points year on year. The company has entered the supply chains of leading enterprises such as Yuanjie Technology, HiSilicon, Changguang Huaxin, and Zhongji Innolight. Going forward, it will continue to focus on the research, development, and industrialization of equipment for high-end application areas related to the AI industry chain, such as advanced semiconductor packaging.

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.

Between the evenings of August 21 and 23, several A-share companies disclosed major matters. Jinlong Shares is planning to transfer its 20% stake in Dongguan Securities, which is expected to constitute a major asset restructuring. Alled is planning to acquire no less than 51% equity in Huizhou Yuanbao Precision Hardware Die Casting through cash transfer and capital increase, also expected to constitute a major asset restructuring. ST Kangjia A will suspend trading from August 24 due to planning a major matter, expected to last no more than five trading days. Jiayuan Technology will be subject to other risk warnings from August 25 because of false records in its prospectus and annual reports, with its abbreviation changed to ST Jiayuan. Huayang Group's controlling shareholder Huayue Investment plans to transfer a 28.3% stake to Jiuzhou Group for 5.66 billion yuan, and the actual controller will change to the Mianyang State-owned Assets Supervision and Administration Commission. Seagull Housing's controlling shareholder Zhongyu Investment plans to transfer a combined 25.01% stake to Botai Chelian and Fuqing Yaohong, and the actual controller will change to Ying Zhenkai. In terms of performance, Zijin Mining's net profit in the first half of the year was 39.17 billion yuan, up 68.17% year on year. Zhongji Innolight's net profit was 13.651 billion yuan, up 241.7%. Yangtze Optical Fibre and Cable's net profit was 2.925 billion yuan, up 888.88%.

On the evening of August 21, multiple listed companies on the Shanghai and Shenzhen stock exchanges issued announcements. Among them, the IPO review status of Yangtze Memory Technologies Co., Ltd. on the STAR Market was changed to accepted, with a planned fundraising amount of 33 billion yuan. Zhongji Innolight reported semi-annual net profit attributable to the parent of 13.651 billion yuan, up 241.7 percent year on year, and plans to distribute 12 yuan per 10 shares. Yangtze Optical Fibre and Cable reported semi-annual net profit attributable to the parent of 2.925 billion yuan, up 888.88 percent year on year, and plans to distribute 10.6 yuan per 10 shares. Dongshan Precision Manufacturing reported semi-annual net profit attributable to the parent of 2.957 billion yuan, up 290.09 percent year on year. Zijin Mining Group reported semi-annual net profit attributable to the parent of 39.17 billion yuan, up 68.17 percent year on year, and plans to distribute 4.2 yuan per 10 shares. Sea Gull Housing's controlling shareholder Zhongyu Investment plans to transfer 20 percent of the company's shares to Botai Chelian, and 5.01 percent of the shares to Fuqing Yaohong. The company's controlling shareholder will change to Botai Chelian, and the actual controller will change to Ying Zhenkai. Trading in the shares will resume on August 24. Zoneco Group plans to list and transfer an 18 percent stake in Amur Company with a reserve price of 108 million yuan. Dosilicon plans to invest 682 million yuan to build a storage-computing integrated chip research and development project. In addition, Guolian Minsheng President Ge Xiaobo resigned, and Wang Jinling will act as president. Harbin Investment and Longjian Road and Bridge also saw changes in their board secretaries.

Zhongji Innolight disclosed its semi-annual report, showing first-half operating revenue of 41.778 billion yuan, up 182.49 percent year on year, and net profit attributable to shareholders of the listed company of 13.651 billion yuan, up 241.70 percent year on year, with basic earnings per share of 12.31 yuan. The company plans to distribute a cash dividend of 12 yuan for every 10 shares to all shareholders. In addition, Zhang Jianping has newly become the ninth largest shareholder of Zhongji Innolight, holding 5.9348 million shares, accounting for 0.53 percent of the total share capital.

Jones Tech again hit the 20 percent daily limit-up on August 18, marking three consecutive limit-up sessions, closing at 97 yuan per share with a total market value of 29.1 billion yuan. Earlier, Zhongji Innolight announced plans to acquire, through a cash agreement, a combined 10.47 percent stake held by Jones Tech's controlling shareholders Wu Xiaoning, Ye Lu, and Han Wu, also known as Wu Han, at a transfer price of 55.70 yuan per share, for a total transaction value of 1.747 billion yuan. After the deal, Zhongji Innolight will become a shareholder holding more than 5 percent. Zhongji Innolight said Jones Tech's high-performance thermal conductive materials and EMI shielding materials can be widely used in digital infrastructure fields such as 5G communications, data centers, and computing power centers. In the future, as high-end optical modules such as 800G and 1.6T ramp up, demand for heat dissipation will increase significantly, and the company expects strong synergies. Jones Tech announced on August 17 that its closing price deviation over the three consecutive trading days from August 13 to 17 exceeded 30 percent cumulatively, which constitutes abnormal stock trading volatility. After verification, there were no undisclosed material matters that should have been disclosed, and the controlling shareholders and actual controller did not buy or sell company shares during the period of abnormal volatility.

Jones Tech surged by the 20 percent daily limit shortly after the market opened this morning, notching its third consecutive limit-up session. On the evening of August 13, Zhongji Innolight announced that, based on its recognition of Jones Tech's long-term investment value, the company signed a share transfer agreement with Jones Tech's controlling shareholders Wu Xiaoning, Ye Lu, and Han Wu. Zhongji Innolight plans to acquire 31.3725 million unrestricted tradable shares of Jones Tech in cash, representing 10.47 percent of its total share capital, at a transfer price of 55.70 yuan per share, for a total consideration of 1.747 billion yuan.

Jones Tech announced that its controlling shareholder, actual controller, and concert parties Wu Xiaoning, Ye Lu, and Hanwu Wu Han plan to transfer 31.3725 million shares, representing 10.47% of the company's total share capital, to Zhongji Innolight via a negotiated deal at 55.70 yuan per share, for a total consideration of 1.747 billion yuan. After the transfer, the transferring parties' combined shareholding will fall from 41.90% to 31.42%, while Zhongji Innolight will hold 10.47% and become a shareholder with more than 5% of the company. This negotiated transfer does not trigger a mandatory tender offer and will not result in a change of the company's controlling shareholder or actual controller.

On the evening of August 13, several A-share companies disclosed important announcements. G-bits reported first-half 2026 operating revenue of 3.727 billion yuan, up 48.01% year on year, with net profit attributable to shareholders of the listed company at 1.092 billion yuan, up 69.31% year on year. The company also plans to distribute a cash dividend of 100 yuan for every 10 shares to all shareholders, with total dividends expected to reach 718 million yuan. Ruixin Technology announced the termination of a major asset restructuring originally intended to acquire a 51% stake in Wuhu Deheng Automotive Equipment Co., Ltd., citing adverse changes in the target company's future profitability due to the market environment. Zhongji Innolight plans to acquire a 10.47% stake in Zhongshi Technology for 1.747 billion yuan, at a transaction price of 55.7 yuan per share. The company said Zhongshi Technology's high-performance thermal conductive materials and EMI shielding materials business will create synergies with its own high-end optical module business. In addition, Hygon Information's first-half net profit rose 49.69% year on year, Honghe Technology's net profit rose 334.32%, and Jianyuan Trust's net profit rose 2559.08%.

Equity capital markets activity in the Asia Pacific reached an all-time monthly high of more than $83 billion in July, driven by blockbuster deals from artificial intelligence-related companies. South Korea's SK Hynix Inc. led with a $26.5 billion US listing, the largest by a foreign company on American exchanges, while mainland China saw its second-biggest IPO as chipmaker CXMT Corp. raised 66.6 billion yuan. Optical transceiver maker Zhongji Innolight Co. added almost $7 billion in Hong Kong's largest first-time share sale in seven years. The record came despite a 7% slump in the MSCI Asia Pacific Index during the month, and momentum has continued into August with about $7 billion in share sales already, including India's $3.3 billion stake sale in Life Insurance Corp.

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.

Hikvision hosted research visits from 203 institutions, including 43 fund companies, 31 securities firms, and 75 private equity firms. In the first half, the company achieved total operating revenue of 46.823 billion yuan, up 11.97 percent year on year, and net profit attributable to the parent of 7.896 billion yuan, up 39.57 percent. Its second-quarter gross margin exceeded 50 percent for the first time and has risen for six consecutive quarters. Hikvision said stronger product competitiveness, product line streamlining, and an industry shift away from cutthroat competition were key factors lifting the gross margin midpoint. Guojin Securities noted that the company's results continue to beat expectations, and that it has launched over a thousand AI large-model products powered by AI large-model technology. Among them, Guanlan coding technology saves users 50 percent on storage hard drives, and cumulative sales of its text-search products have surpassed 100,000 units. In addition, Sunlord Electronics said its energy storage business is benefiting from a rapid recovery in downstream industry sentiment, while emerging strategic markets such as automotive electronics and data centers continue to show strong growth momentum. Zhongji Innolight disclosed that the average selling price of its 1.6T optical modules is far higher than market rumors suggest, there is no vicious competition in the industry, and overall demand is robust with tight delivery. Over the past week, stocks of companies receiving institutional research visits rose an average of 2.6 percent. Chuanzhi Education hit the daily limit up for five consecutive sessions, and Chinese All Digital is actively laying out cutting-edge content tracks such as AI short dramas and AI interactive film-games.

Amid AI bubble worries, institutional investors and engineers are zeroing in on essential infrastructure like liquid cooling systems and high-speed optical transceivers, where two Chinese companies are major global players: Shenzhen Envicool Technology and Zhongji Innolight. Envicool is a leader in data center temperature control, buoyed by mandatory upgrade demand for cooling systems to handle scorching AI chips, and enjoys a business moat from high switching costs. Zhongji Innolight holds the number one global position in 800G and 1.6T high-speed optical transceivers, counting Big Tech firms in Silicon Valley as key customers. This reflects how, in advanced bottleneck technologies, business needs often transcend geopolitical barriers, and first-mover advantages allow companies to sustain premium gross margins early in a new product cycle.

China's Zhongji Innolight will launch a Hong Kong listing on Wednesday seeking to raise at least $8 billion, according to sources. The optical transceiver maker will sell shares at up to HK$1,010 each, a 13.2% discount to its Shenzhen-listed stock's Monday close. The deal would be Hong Kong's largest share sale in nearly seven years since Alibaba Group's $12.9 billion listing in 2019, and is expected to be Asia's second-largest listing this year after Chinese chipmaker CXMT Corp's $8.6 billion IPO on Shanghai's STAR market. Hong Kong new listings have raised $33.8 billion so far this year, more than double the $16.4 billion raised in the same period last year, according to LSEG data.

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.

Hong Kong's equity capital markets raised nearly $44 billion in the first half of 2026, the highest level in five years, driven by strong investor demand for artificial intelligence-related companies. The total, which includes initial public offerings, share placements, and block trades, was up 29% from a year earlier and accounted for the largest share of the $122 billion raised across the Asia-Pacific region. Chinese companies linked to the AI supply chain led the activity, with battery maker Contemporary Amperex Technology and printed circuit board manufacturer Victory Giant Technology completing multibillion-dollar offerings. The surge came despite the Hang Seng Index falling nearly 12% this year and new regulatory measures from Beijing. Several AI-related companies are preparing to tap the Hong Kong market in the coming months, including electronics manufacturer Luxshare Precision Industry, which is planning a listing of about $3 billion, optical transceiver maker Zhongji Innolight, and Baidu's AI chip subsidiary Kunlunxin.