The largest IPO on the Hong Kong Stock Exchange this year: 90% of its revenue comes from overseas, how does this Chinese company underpin global AI c

On July 30, Innolight was officially listed on the Main Board of the Hong Kong Stock Exchange, becoming the largest IPO by fundraising scale on the Hong Kong stock market so far in 2026. The offering price of Innolight is HK$980 per share, the opening price is HK$971 per share, and as of press time, the price stands at HK$959.50 per share, with a market capitalization of HK$1.12 trillion.

With the accelerated development of large AI models and global computing power infrastructure, optical modules, as the core hub of data centers, have drawn high attention from the capital market. As the global leading enterprise in this high-growth track, Innolight has globally offered 54.5 million H shares in this listing, and the fundraising amount reaches about HK$534.10 billion calculated at the offering price.

Founded in 2005, Innolight is mainly engaged in the R&D, production and sales of optical modules. Its products cover the full series from 10G to 1.6T, applied in AI data centers, cloud computing, telecommunication networks and other fields. As the world's leading provider of high-speed optical interconnection solutions, according to CIC, Innolight has ranked first in the world in revenue scale for five consecutive years since 2021, with a 21.2% global market share in 2025. Its overseas revenue accounts for as high as 90.6%, and its customers cover cloud service giants such as Google, Amazon and Microsoft, as well as AI enterprises such as NVIDIA and Meta.

01  Revenue Increased 3.5 Times in 3 Years

In terms of financial performance, Innolight is in a period of explosive performance growth. According to the prospectus, from 2023 to 2025, Innolight's revenue surged from 107.18 billion yuan to 382.40 billion yuan, of which the year-on-year growth in 2024 reached 122.6%, and it still maintained a high growth rate of 60.3% in 2025.

What is more noteworthy is the profit growth. During the same period, the net profit increased from 22.08 billion yuan to 115.80 billion yuan, with the year-on-year growth rate as high as 143.3% and 115.6% respectively. The growth rate has continuously outpaced the revenue growth. At the same time, from 2023 to 2025, the proportion of R&D, sales and other expenses in Innolight's total revenue has narrowed, which also reversely indicates that product premium and scale effect are playing a role simultaneously, leading to the decline of marginal cost.

Data source: Innolight prospectus

By breaking down the revenue structure, it can be seen that in the wave of AI data center upgrading, Innolight's product structure is continuously tilting towards the direction of high gross profit and high computing power demand. Among them, high-speed optical modules (400G and above) have always been the absolute main force, with revenue increasing from 71.06 billion yuan in 2023 to 340.92 billion yuan in 2025, and its proportion in total revenue has risen to 89.2%. Correspondingly, the revenue proportion of low and medium-speed optical modules (10G-200G) has dropped to 8.8% in 2025.

Data source: Innolight prospectus

The transmission rate of high-speed optical modules covers 400G, 800G and 1.6T, which are mainly applied in AI data centers and cloud computing scenarios. According to CIC, at present, all of Innolight's high-speed optical module products achieve mass production about half a year ahead of their peers. In addition, Innolight attaches great importance to the reserve of cutting-edge technical routes, covering XPO (extra-high density pluggable optical modules), LPO (linear-drive pluggable optical modules), LRO (linear receive optics), CPO (co-packaged optics) and NPO (near-packaged optics) solutions. Among them, LPO/LRO solutions have generated 1.1 billion yuan of revenue, and XPO/NPO/CPO solutions have also started small-volume shipments.

In addition, Innolight also provides upstream devices such as TO-CAN packaging components and optical sub-assemblies (OSA), and expands automotive optical transmission solutions applied to FTTV (Fiber to the Vehicle) deployment to provide optical interconnection support for autonomous driving. This complete product matrix of "from chips to modules, from data communication to telecommunication, from AI to automotive" makes it occupy a hub position in the middle of the industrial chain, connecting optical/electrical chip and optical device manufacturers upstream, and serving global cloud service providers and data center operator customers downstream.

02  90% of Revenue Comes from Overseas Markets

Overseas markets are not only the main revenue source of Innolight, but also its strategic depth. From 2023 to 2025, overseas revenue increased from 90.73 billion yuan to 346.37 billion yuan, accounting for over 90% of the total revenue.

In terms of regional distribution of revenue, although the revenue proportion of the US market declined (dropped to 57.3% in 2025), the absolute amount still increased from 81.39 billion yuan to 218.97 billion yuan, with a nearly 1.7 times growth in two years. Meanwhile, revenue from regions such as Singapore, the Netherlands and the United Kingdom has risen rapidly, accounting for a total of 33.3% in 2025, which mainly benefits from the rapid expansion of local cloud service providers and AI enterprises. It can also be seen that Innolight has achieved results in diversifying its customer structure and exploring emerging markets.

Data source: Innolight prospectus

Innolight's overseas expansion journey first started in 2011, when it entered the global high-end supply chain by winning customers from leading overseas cloud service manufacturers. In 2018, Innolight established its Singapore subsidiary to accelerate its global layout. Three years later, it topped the list of global optical interconnection solution providers and has remained the world's No.1 for five consecutive years.

To match the global supply, Innolight has completed "overseas capacity layout". In addition to Chinese mainland, it has production bases in Taiwan, China and Thailand, which not only retains the cost and efficiency advantages of domestic production, but also hedges global risks through overseas production capacity.

Relying on the complete optical communication industrial chain in the Yangtze River Delta, sufficient engineer resources and mature manufacturing capacity, the Suzhou headquarters is the company's core base, undertaking main R&D work (with 2292 R&D personnel as of March 2026) and core production capacity, maintaining the company's core competitiveness with advantages in cost control, technology iteration and delivery efficiency.

The Thailand production base is the fastest-growing overseas production capacity of Innolight in recent years. Products shipped to the United States can avoid the Section 301 tariff, improving price competitiveness. The factory in Taiwan is set up to get closer to the upstream core supply chain, ensure supply chain stability, and facilitate technical cooperation and coordination with the local chip industry. The production layout of the three regions has different focuses and complements each other, forming a global manufacturing system with both offensive and defensive capabilities.

From "product export" to "overseas capacity layout", from high-speed optical modules to next-generation optical interconnection technologies, Innolight's growth path is another epitome of Chinese hard technology enterprises embracing the global computing power wave in the AI era. This Hong Kong stock listing will likely become a new fulcrum for it to further expand its international capital and business territory.

*The information and opinions contained in this article do not constitute any investment advice and are for reference only.

This article is from the WeChat official account "Zhejiang Enterprises Overseas Integrated Service Port".