Zhongji Xuchuang's net profit doubles by 2025, with a significant increase in the proportion of silicon photonics shipments boosting gross profit

After the significant increase in net profit disclosed in the January performance forecast, Zhongji Xuchuang has also released more detailed financial data.

On the evening of February 27, Zhongji Xuchuang (300308.SZ) announced its unaudited 2025 annual performance brief. According to the announcement, the company’s operating revenue reached 38.24 billion yuan, a year-on-year increase of 60.25%; net profit attributable to shareholders of the listed company was 10.799 billion yuan, up 108.81%.

Source: Zhongji Xuchuang

Among them, the optical module business achieved a net profit of approximately 11.764 billion yuan during the reporting period. After deducting approximately 222 million yuan in equity incentive expenses, the net profit from the optical module business was about 11.986 billion yuan. In 2024, the same scope net profit was only 5.66 billion yuan, which means that in 2025, this business’s net profit increased by 111.77% year-on-year.

Regarding the significant growth in performance, Zhongji Xuchuang stated that during the reporting period, benefiting from strong investments in computing infrastructure by end customers, the company’s product shipments grew rapidly, with the proportion of high-speed optical modules continuously increasing. As product solutions were optimized and operational efficiency improved, both operating revenue and net profit saw substantial growth compared to the previous year.

Assets-wise, as of the end of 2025, the company’s total assets reached 45.529 billion yuan, an increase of 57.72% from the beginning of the year; owners’ equity attributable to shareholders was 30.004 billion yuan, up 56.81%. The expansion of asset scale was mainly driven by increased operating income and larger business scale, leading to corresponding rises in cash, inventories, and accounts receivable at the end of the period.

According to publicly available information, Zhongji Xuchuang is a professional provider of high-speed optical module solutions, integrating R&D, design, packaging, testing, and sales of high-end optical communication transceiver modules into a technology-driven enterprise.

Recently, during an institutional survey, Zhongji Xuchuang revealed more specific performance details.

Senior executives said that, quarter by quarter, the revenue in 2025 showed a stable sequential growth trend, reflecting a gradual increase in shipment scale. Gross profit margin also improved sequentially, mainly due to the increasing proportion of high-end products and the rising share of silicon photonics.

On the expense side, in the fourth quarter of 2025, factors such as material handling and settlement costs with counterparties led to a quarter-on-quarter increase in expenses. R&D expenses grew rapidly, mainly due to year-end accruals and inventory clearing; financial expenses also increased quickly, mainly affected by exchange losses.

Executives also revealed that in Q4 2025, demand and orders from key customers remained strong, with shipments of products like 800G continuing to grow sequentially. The 1.6T products began shipping to key customers in Q3 2025, with volume increasing more rapidly in Q4, marking the start of the 1.6T volume era.

In Q4 2025, the proportion of silicon photonics continued to rise, with the shipment share of 800G silicon photonics further increasing. The share of 1.6T silicon photonics was higher than that of 800G, significantly contributing to the improvement in gross margin in Q4 2025.

Demand for 1.6T silicon photonics is expected to continue rising. Zhongji Xuchuang’s executives said that as key customers begin deploying 1.6T in 2026, the demand for 1.6T silicon photonics is expected to see substantial growth compared to 2025. Orders for 1.6T silicon photonics surged in Q1 and are expected to maintain sequential growth. Additionally, some customers will enter the validation phase for 1.6T this year, and by 2027, 1.6T silicon photonics is expected to become a mainstream demand among CSP customers.

The surge in demand has put pressure on material supply. “In Q4 2025, some materials experienced supply shortages, mainly due to rapid customer demand outpacing production capacity for optical chips and other materials, affecting the company’s production and shipments,” Zhongji Xuchuang stated. “Among them, EML and CW optical chips have longer production cycles and are relatively more scarce. Supply is expected to remain tight in the first half of this year, with some relief only in the second half.”

Regarding future optical module prices, Zhongji Xuchuang said that as customer demand continues to grow, the industry generally expects optical module prices to decline annually.

The company’s executives also expressed confidence that the optical module market demand in 2026 is likely to continue its steady and rapid growth. The company will make thorough preparations, manage the supply chain effectively, and strive to further increase shipment scale and revenue. Looking ahead to 2027, the company anticipates more business opportunities, including new scenarios like scale-up.

Reporting by: Liu Changyuan, Nandu·Wancai Society