Optical transceiver maker Zhongji Innolight plans to cancel 5.65 million repurchased shares; net profit for first three quarters surges 211.81%
Zhongji Innolight announced changing the purpose of repurchased shares to cancellation to boost EPS, while disclosing significant revenue and profit growth driven by AI optical module demand.
Chinese optical transceiver manufacturer Zhongji Innolight (300308.SZ) released a voluntary announcement on November 6, 2026, stating that it will change the purpose of its previously repurchased A-shares from "implementing employee stock ownership plans or equity incentive plans" entirely to "cancellation and reduction of registered capital." The proposal was approved by the board on October 29, 2026, and is pending review at an extraordinary shareholders' meeting.
According to the disclosure, the company cumulatively repurchased 5,653,063 shares between September 1 and September 23, 2026, accounting for 0.48% of its total share capital, with a total payment of approximately RMB 4.997 billion (excluding transaction fees). Upon completion of this cancellation, the company's total share capital will decrease accordingly, aiming to further enhance financial metrics such as earnings per share (EPS) and net assets per share. Additionally, the company noted that Chinese regulators recently lowered the interest rate for share buyback and holding re-lending facilities to 1%, indicating it would utilize policy tools to maintain corporate value.
On the operational front, benefiting from high industry prosperity and strong capital expenditure from major customers, Zhongji Innolight reported operating revenue of RMB 69.547 billion for the first three quarters of 2026, a year-on-year increase of 178.13%. Net profit attributable to shareholders reached RMB 22.238 billion, up 211.81% year-on-year. Orders for 800G and 1.6T high-end products in the third quarter achieved good sequential growth, with accelerating revenue from 1.6T products serving as a key driver.