Chinese optical transceiver champion follows peers to Hong Kong as AI bonanza fuels 13-fold stock surge
By Chen Mei
Eoptolink Technology (300502.SZ), one of China’s leading optical module makers, is preparing to join fellow industry leaders Zhongji InnoLight (3308.HK; 300308.SZ) and TFC Optical Communication (300394.SZ) in seeking a Hong Kong listing.
The Shenzhen-listed company said its board had approved a proposal to issue H shares and list them on the Hong Kong Stock Exchange.
The move comes after a sharp rise in earnings and market value driven by demand for optical modules used in AI data centres. Eoptolink’s net profit attributable to shareholders jumped 236 % in 2025 to 9.53 billion yuan ($1.32 billion). First-quarter 2026 revenue more than doubled year on year to 8.34 billion yuan, while net profit rose 76.8% to 2.78 billion yuan.
From telecoms to AI infrastructure
Eoptolink was founded by Gao Guangrong, who began his career as a technician at the optical communications division of a radio factory in Sichuan after graduating from a technical secondary school in 1989.
Gao left to start his own business in 1998, initially distributing optical communications products. He later shifted towards developing products in-house, eventually establishing Eoptolink through a merger in 2008.
The company’s most important strategic decision came in 2018-19, when Gao redirected its focus from telecommunications to data communications. While China was investing heavily in 4G and 5G networks, he argued that future computing demand would increasingly be concentrated in data centers.
Eoptolink began concentrating its research efforts on 100G and 400G products just as Amazon, Microsoft, Google and other U.S. technology groups were embarking on a new cycle of data-center investment.
The move helped the company enter the supply chains of major cloud companies and evolve from a regional manufacturer into a global supplier.
It subsequently kept pace with the industry’s shift from 400G to 800G and 1.6T optical modules. In 2023, it launched an 800G linear-drive pluggable optics (LPO) module that reduced power consumption by about 30%, helping it win business from companies including Google, Amazon and Nvidia.
A 13-fold share-price surge
Optical modules are critical to AI infrastructure because they provide high-speed connections between GPUs and across large AI clusters.
Investors have responded accordingly. Eoptolink’s shares, listed on the ChiNext board, have risen more than 13-fold since hitting about 40 yuan in April 2025. Its market capitalisation is now around 750 billion yuan, after briefly topping 810 billion yuan.
The rally has also transformed Gao’s personal wealth. His 6.24% stake was worth about 46.8 billion yuan in June, according to calculations based on the company’s market value, compared with estimated wealth of 2.6 billion yuan when he first appeared on the Hurun Rich List in 2020.
The Hong Kong listing is expected to provide additional capital for technology research, manufacturing upgrades, capacity expansion, acquisitions and working capital.
That funding comes as product development cycles accelerate. One investor said the interval between generations had shortened from about three years to one to two years as the industry moves from 800G to 1.6T and eventually 3.2T products.
Eoptolink has also expanded production overseas. Its first Thailand facility began operating in 2023, while a second phase was completed at the end of 2024 and started production in early 2025.
The company’s first-quarter results showed strong demand: contract liabilities rose 222% year on year, while orders for 800G and 1.6T products were booked through the fourth quarter of 2026. It has also signed long-term supply agreements with Meta, Microsoft and Amazon covering 2026 to 2030, with 1.6T products a key category.
China’s optical module industry takes the lead
Eoptolink’s growth reflects a broader rise by Chinese optical module manufacturers.
Industry research firm LightCounting estimates that Chinese companies accounted for four of the world’s six largest optical module suppliers in 2026 and seven of the top 10, with their combined global market share exceeding 60%.
Zhongji InnoLight and Eoptolink ranked first and second respectively, while TFC Optical Communication and Accelink Technologies (002281.SZ) were also among the leading suppliers.
Chinese manufacturers have benefited from dense domestic supply chains and flexible manufacturing capacity, allowing them to respond quickly to the rapid construction of North American AI data centers.
Rather than competing primarily on price, leading Chinese suppliers have focused on customised products and consistent quality to meet the requirements of major North American customers.
But the industry is facing supply constraints. Phosphide-indium substrates are reportedly in a supply deficit of more than 70%, while capacity for EML and DSP chips has been booked in advance by major customers including Nvidia. Long lead times for MOCVD equipment used to manufacture optical chips are adding to the pressure.
Silicon photonics is meanwhile emerging as an important technology for shorter-distance applications. Eoptolink said the proportion of its silicon-photonics products had increased substantially from last year and that they had become part of its mainstream product range.
The Hong Kong listing therefore comes at a pivotal moment for Eoptolink and its Chinese peers, as they seek the capital needed to keep pace with increasingly rapid technological change while meeting surging global demand for AI infrastructure.
Source:
Chinaventure.com.cn
