AI Computing Power Demand Ignites High-Speed Optical Modules; CIG's H1 Net Profit Expected to Rise 156.65% to 197.18% | Financial Report Insights
CIG expects its net profit attributable to shareholders for the first half of 2026 to range from RMB 310 million to RMB 359 million, representing a year-on-year increase of 156.65% to 197.18%. This growth is primarily driven by the surge in demand for high-speed optical modules, with increased volume and prices for products such as 800G modules boosting profitability. Net profit excluding non-recurring items is close to the net profit attributable to shareholders, indicating that growth stems from core business operations. However, exchange rate fluctuations resulted in approximately RMB 202 million in foreign exchange losses. As raised funds are gradually utilized, the scale of related foreign exchange assets is expected to decline, thereby weakening the impact of foreign exchange losses on future profits
The expansion of AI computing power infrastructure continues to transmit upstream, bringing optical module manufacturers into a cycle of high performance growth.
On July 14, CIG released its preliminary announcement for the 2026 semi-annual performance increase, estimating that the net profit attributable to shareholders of the listed company for the first half of the year will be between RMB 310 million and RMB 359 million, a year-on-year increase of 156.65% to 197.18%; the net profit excluding non-recurring items is estimated to be between RMB 302 million and RMB 351 million, a year-on-year increase of 153.72% to 194.97%.
The company stated that the performance growth mainly benefits from the rapid development of the high-speed optical module business. The acceleration of AI data center construction has driven up demand for high-speed optical modules. The company's order scale and product shipment value have increased significantly year-on-year. Meanwhile, the proportion of high-speed products such as 800G has risen, driving optimization of the product structure and improvement in gross margin.
In terms of performance quality, this growth mainly comes from the improvement of core business operations. In the same period last year, the company's net profit attributable to shareholders was RMB 121 million. The lower bound of this period's forecast range is more than double that of the same period last year. At the same time, the net profit excluding non-recurring items is close in scale to the net profit attributable to shareholders, indicating that non-recurring gains and losses have a limited impact on performance.
Surge in Demand for High-Speed Optical Modules Drives Profitability Improvement Through Volume and Price Increases
The core driver of CIG's performance growth in this round comes from the high-speed optical module business.
As the demand for training and inference of large AI models continues to rise, global data centers are accelerating their expansion, leading to rapid growth in demand for high-speed interconnect products. 800G optical modules are becoming important supporting products for AI cluster construction and are evolving towards higher speeds such as 1.6T.
Under this trend, CIG benefits on one hand from market demand growth and continuous expansion of order scale; on the other hand, as the sales proportion of high-speed products increases, product added value and profitability improve simultaneously, driving dual growth in the company's revenue and profit.
The company's announcement shows that there is no significant impact from major non-recurring gains and losses on the preliminary performance increase for this period, nor are there any special accounting treatment factors. The improvement in core business operations is the main source of profit growth.
Foreign Exchange Losses Exceed RMB 200 Million; Foreign Exchange Exposure Expected to Narrow in the Future
While the high-speed optical module business experiences high growth, exchange rate fluctuations have exerted significant pressure on the company's profits.
CIG previously obtained funds through its Hong Kong IPO and placement financing, with part of the proceeds retained in Hong Kong dollars. Since the beginning of this year, the weakening of the US dollar has driven fluctuations in the Hong Kong dollar exchange rate, causing the company's foreign exchange gains to turn into losses. Data shows that the company expects to incur approximately RMB 202 million in foreign exchange losses in the first half of 2026, compared to foreign exchange gains of RMB 13.65 million in the same period last year.
However, as the raised funds are invested in capacity building and business development according to plan, the scale of related foreign exchange assets is expected to gradually decrease, and the impact of foreign exchange factors on future profits is expected to weaken.
