AI computing power demand drives, Innolight's Q3 net profit is 2.385 billion yuan, revenue increases 152.53% year-on-year | Earnings report insights

AI computing power demand drives, Innolight's Q3 net profit is 2.385 billion yuan, revenue increases 152.53% year-on-year | Earnings report insights

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Optical communication module manufacturer Eoptolink achieved operating revenue of 6.068 billion RMB in Q3, a year-on-year increase of 152.53%; net profit attributable to shareholders of the listed company reached 2.385 billion RMB, a year-on-year increase of 205.38%. The growth in performance was mainly due to the development of artificial intelligence computing power investments during the reporting period, which led to a significant increase in sales revenue compared to the same period last year.

On the 29th, Eoptolink released its 2025 Q3 financial report:

Revenue for the third quarter was 6.068 billion RMB, up 152.53% year-on-year;Net profit was 2.385 billion RMB, up 205.38% year-on-year.

AI computing power investment becomes a key driver, R&D investment increases simultaneously

In the first three quarters of 2025, Eoptolink achieved revenue of 16.505 billion RMB, up 221.70% year-on-year; net profit reached 6.327 billion RMB, up 284.37% year-on-year. The company stated that the growth in operating revenue in the first three quarters was driven by the strong market demand in the AI sector.

Along with the increase in revenue, the company’s costs and expenses also rose accordingly, reflecting the rapid business expansion. During the reporting period, operating costs increased by 194.30% year-on-year to 8.707 billion RMB, mainly due to the expansion of sales scale. At the same time, to maintain technological leadership and market competitiveness, the company continued to increase investment, with R&D expenses reaching 501 million RMB, up 149.57% year-on-year; sales expenses also increased by 96.88% year-on-year due to market expansion and increased personnel compensation.

It is worth noting that, due to the appreciation of the functional currency used by overseas subsidiaries, the company recorded significant foreign exchange gains, resulting in financial expenses dropping sharply by 179.49% year-on-year.

Business scale expansion, significant growth in key asset and liability items

The rapid growth in performance is directly reflected in the expansion of the balance sheet. By the end of the reporting period, Eoptolink's total assets reached 21.356 billion RMB, an increase of 74.10% compared to the end of last year.

  • Assets: Cash and cash equivalents increased to 5.439 billion RMB, up 239.86% from the beginning of the year, mainly due to strong sales collection and tax rebates. To meet current and expected orders, the company significantly increased inventory, which rose to 6.603 billion RMB, up 59.79% from the beginning of the year. Additionally, accounts receivable rose to 3.993 billion RMB as sales expanded.
  • Liabilities: With expanded procurement of raw materials, notes payable and accounts payable grew by 110.82% and 55.03% respectively. The company’s employee headcount or compensation levels also increased, with salaries payable up 131.00% from the beginning of the year.

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