Zhongji Innolight Co. (300308) Q2 2024 earnings summary

Executive summary

• Achieved revenue of ¥10.80 billion in H1 2024, up 169.70% year-over-year, driven by surging demand for 400G/800G optical modules and increased capital expenditure in cloud and AI infrastructure.

• Net profit attributable to shareholders reached ¥2.36 billion, up 284.26% year-over-year; adjusted net profit (excluding non-recurring items) was ¥2.33 billion, up 300.07%.

• Gross margin improved to 33.83%, up 3.01 percentage points year-over-year, reflecting product mix upgrade and cost efficiency.

• Company maintained global leadership in high-end optical module shipments and market share, ranking first worldwide in 2023.

• Major capital projects advanced, with the Tongling high-end optical module base completed and new investments in Suzhou and Tongling to expand high-end capacity.

Financial highlights

• Revenue: ¥10.80 billion, up 169.70% year-over-year.

• Net profit attributable to shareholders: ¥2.36 billion, up 284.26% year-over-year.

• Adjusted net profit (excluding non-recurring items): ¥2.33 billion, up 300.07% year-over-year.

• Operating profit: ¥2.73 billion, up 282.35% year-over-year.

• Basic EPS: ¥3.03, up 293.51% year-over-year.

• Operating cash flow: ¥968 million, down 16.23% year-over-year.

• Total assets: ¥24.42 billion, up 22.07% from year-end 2023.

• Net assets: ¥17.14 billion, up 16.01% from year-end 2023.

Outlook and guidance

• Expects continued strong demand for 400G/800G and higher-speed optical modules, driven by global cloud, AI, and data center investments.

• Will further expand high-end product capacity and accelerate R&D in silicon photonics, coherent, and LPO technologies.

• Company aims to maintain global leadership and respond rapidly to market and technology trends.