Zhongji Innolight (03308) plans to cancel 5.6531 million repurchased shares; net profit RMB22.238 billion, up 211.81% year on year.

Zhongji Innolight (03308) announced that, in order to better safeguard the legitimate rights and interests of investors, the company is now voluntarily disclosing the relevant information as follows: I. Matters relating to share repurchase To better safeguard the interests of shareholders and investors, the company held the fifth meeting of the sixth board of directors on October 29, 2026, at which it deliberated and approved the proposal to change the purpose of the repurchased A-share shares, changing the purpose of all repurchased shares from "implementation of employee stock ownership plan or equity incentive plan" to "for cancellation and reduction of registered capital," and submitted it to the company's third extraordinary shareholders' meeting in 2026 for deliberation. From September 1, 2026 to September 23, 2026, the company, through a dedicated securities account for share repurchase, cumulatively repurchased 5.6531 million shares of the company via centralized bidding transactions, accounting for 0.48% of the company's total share capital, with a total amount paid of RMB4.997 billion (excluding transaction fees). After the completion of this cancellation, the company's total share capital will decrease by 5.6531 million shares, which is conducive to further improving the company's financial indicators such as earnings per share and net assets per share. At the same time, the company notes that, in order to maintain capital market stability and enhance market resilience and confidence, in November 2026 the People's Bank of China, the National Financial Regulatory Administration, and the China Securities Regulatory Commission held a symposium on the two tools supporting the capital market, turning the policy of relending for stock repurchase and increased holdings from a phased arrangement into a long-term institutional arrangement, with the relending rate reduced from 1.25% to 1% effective November 4, 2026. The company will, in light of the repurchase relending policy, the company's funding situation, market trends, and other factors, fully utilize policy tools and, through repurchases and other means, safeguard the company's value and the interests of the broad investor base, with specifics subject to the announcements subsequently disclosed by the company. II. The company's current operating conditions and future outlook Benefiting from the industry's high prosperity and the strong capital expenditure of major customers, as well as fully leveraging the company's comprehensive advantages in R&D, customer introduction, production capacity, and supply chain, the company's orders for products such as 800G and 1.6T in the third quarter of 2026 all achieved good quarter-on-quarter growth compared with the second quarter. In the first three quarters, the company achieved operating revenue of RMB69.547 billion, up 178.13% year on year, and net profit attributable to shareholders of the listed company of RMB22.238 billion, up 211.81% year on year. The revenue growth in the third quarter of 2026 mainly came from the continued expansion of shipment scale of high-end products such as 800G and 1.6T, among which revenue from 1.6T products further accelerated, which was an important driving factor for the third-quarter performance growth. The company continues to maintain a solid share with customers, customer orders continue to increase, and product prices and gross margins remain stable. While demand grew rapidly, the company, through proactive early material stocking and by adopting various methods such as signing long-term agreements, prepayments, and introducing new suppliers to arrange key materials in advance, effectively coped with material tightness and achieved relatively rapid quarter-on-quarter revenue growth. The company's gross margin continued to improve alongside rapid revenue growth, mainly thanks to product mix improvement and an increased proportion of silicon photonics, which also reflects the effectiveness of the company's supply chain management measures. Looking ahead, industry demand remains strong at present. Orders from major customers have basically covered the full year of 2027, and some key customers have already provided clear demand guidance for 2028. It is expected that the company's order demand for 800G and 1.6T will continue to maintain rapid growth, and demand for next-generation optical interconnect products such as NPO and XPO will gradually be released in the second half of next year, applicable to scenarios such as scale-out and scale-up. The company is actively preparing materials and production capacity to be well prepared for a better ramp-up in 2027.