New Stock Spotlight | Coherent (Zhongji Xuchuang): NVIDIA's Core Supplier and World's No.1 Optical Transceiver Maker Launches Hong Kong IPO!

Global leader in optical transceivers $ZJ INNOLIGHT (03308.HK)$The allotment results were announced today, with listing on the HKEX Main Board expected on Thursday, July 30.This marks the company’s 'A+H' dual-listing strategy, 14 years after its initial listing on the Shenzhen Stock Exchange in 2012.

Industry Positioning and Core Business

Optical Transceivers: The Blood Vessels of AI Computing's 'Neural Network'

The fundamental function of optical transceivers isto convert electrical signals between servers and switches into optical signals to enable high-speed data transmission.Simply put: When a GPU cluster finishes processing data and needs to send it to another GPU, optical transceivers handle the connection in between. This component is highly technical—each new generation doubles the speed, significantly raising both R&D barriers and unit prices.

In this industrial chain, Zhongji InnoLight belongs to the core midstream manufacturing segment.It relies on upstream U.S. suppliers such as Coherent and Lumentum for high-end optical chips like EMLs and DSPs, while handling in-house R&D, assembly, and mass production of optical modules, which it sells directly to downstream AI computing giants including Google, Amazon, Microsoft, Meta, and NVIDIA.

The company’s revenue structure is highly focused:Optical communication transceiver modules are projected to generate approximately RMB 37.457 billion in revenue in 2025, accounting for 97.95% of total revenue, with a gross margin of 42.61%.

Among these, 800G and 1.6T high-speed products are the core drivers of profit growth. The 1.6T optical modules began volume shipments in Q3 2025 and ramped up rapidly in Q4, pushing the Q4 gross margin up by nearly 2 percentage points quarter-over-quarter to 44.48%.

Competitive Landscape

According to LightCounting data, InnoLight Technology:

1. Held over 23% global market share in optical module shipments in 2025,Ranked #1 globally for three consecutive years

2. Global market share: 800G – 40%–55%; 1.6T – over 50%

3. InnoLight supplies approximately 80% of NVIDIA’s GB200 platform 1.6T optical modules,making it NVIDIA’s largest optical module supplier

Its main competitors include Coherent (U.S.-based, ranked #2 globally with a market share of ~15–16%) and China’s second-tier players such as Eoptolink, Accelink, and HG Tech. Chinese optical module vendors collectively hold a 62%–65% global market share (per LightCounting’s 2025 TOP10 data), yet the domestic localization rate for high-end chips remains only 4%–5%, representing a shared industry bottleneck.

Core Barriers

Mass production capability.InnoLight is currently the only company globally capable of mass-producing and delivering both 800G and 1.6T optical modules at scale. Establishing production capacity and securing customer certifications typically takes 2–3 years, creating a significant first-mover barrier.

Why this Hong Kong IPO deserves attention

Since 2026, the Hong Kong IPO market has entered a super cycle.Deloitte forecasts approximately 160 new listings on the Hong Kong stock exchange in 2026, raising a total of HK$300 billion. Currently, over 490 companies are in the IPO pipeline, with both capital availability and policy support heavily favoring high-quality tech assets.

Zhongji Xuchuang is the first A+H dual-listed company globally in the high-speed optical transceiver sector.In Q1 2026, the company reported net profit of RMB 5.735 billion, exceeding its full-year 2024 net profit of RMB 5.17 billion, with gross margins continuing to rise. Return on equity (weighted average) reached 43.63% in 2025, and net operating cash flow was RMB 10.9 billion, fully covering net profit for the period, indicating strong cash collection quality.

Risk Warning

Although Zhongji Xuchuang has strong fundamentals and operates in the hot AI technology sector, certain potential risks remain that cannot be ignored.

The current H-share offering price is set at HK$980, equivalent to approximately RMB 906. Meanwhile, Zhongji Xuchuang’s A-share price has recently dropped sharply from its peak during the subscription period to RMB 908—The H-shares offer virtually no discount relative to the A-shares, meaning the safety cushion has essentially disappeared, making significant downward pressure on the first day of listing highly likely.

The company’s top five customers collectively contributed 76% of annual revenue, with the largest single customer accounting for 24% (approximately RMB 9.2 billion). Any adjustment in NVIDIA’s procurement plans or shift in its technology roadmap would likely significantly impact the company’s revenue.

Meanwhile,Zhongji Xuchuang is also exposed to dual uncertainties from tariffs and supply chain disruptions.Approximately 90% of the company's revenue comes from overseas markets, and more than 50% of its core raw materials (EML and DSP optical chips) rely on U.S. suppliers, with the largest supplier accounting for 35.76% of total procurement. Foreign exchange losses already reached RMB 318 million in 2025, and fluctuating tariff policies directly affect shipping costs.

Finally, under its current high valuation, the company faces significant pressure from rapid technological iteration. If the 3.2T/CPO technology roadmap reshapes the industry chain or intensifies price competition in high-speed optical transceivers—eroding margins on 800G products—it could lead to downward revisions in earnings expectations and trigger a substantial valuation correction.

Notably, HKEX has announced that individual stock options (including monthly and weekly expiring contracts) for Zhongji Xuchuang will be launched concurrently on its listing day, July 30. This is a relatively rare move by HKEX to introduce options trading on the first day for a major new listing, providing investors who have been allotted shares—and are concerned about a potential first-day price drop—with a practical risk management tool.

The above content is compiled based on the public prospectus and publicly available financial data, as of July 22, 2026. It does not constitute any form of investment advice. Investing involves risks; please proceed with caution.

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