HK Stock Market Move | Zhongji Innolight (03308) fell over 11% after earnings report; second-quarter net profit increased by 38% quarter-on-quarter; high capital expenditure may continue into next year.

Zhongji Innolight (03308) has seen a sharp decline post-earnings announcement, with A-shares falling over 7% and H-shares dropping 11.05%, currently at HKD 1014, with a trading volume of HKD 831 million. In terms of news, Zhongji Innolight reported a revenue of RMB 41.778 billion for the first half of the year, reflecting a year-on-year increase of 182.49%; net profit attributable to shareholders of the listed company was RMB 13.651 billion, an increase of 241.7% year-on-year. It was reported that the company's net profit for the first quarter was RMB 5.735 billion, suggesting a second-quarter net profit of RMB 7.916 billion, a quarter-on-quarter increase of 38%. On August 23, Zhongji Innolight stated in an institutional conference call that major customers have already provided guidance and orders for 2027, with demand for 1.6T and 800G orders continuing to grow rapidly compared to 2026; the company's goal is to maintain a high gross margin and hopes to achieve a slight increase, as a significant rise does not align with industry characteristics. Additionally, the company is expanding multiple plants, leading to increased capital expenditures in the second quarter, with expectations of substantial capital expenditure continuing into next year.