CIG Tech: Full‑Year Profit Growth Expected, 1.6T Optical Module Shipments Set to Accelerate

CIG Shanghai Co., Ltd. (CIG Tech, 603083.SH)

CIG Tech released its 2025 full‑year performance forecast, projecting steady annual profit growth amid booming high‑speed optical module demand. The company expects net profit attributable to parent shareholders to reach RMB 252 million to RMB 278 million in 2025, representing a year‑over‑year increase of 51.19% to 66.79%. Non‑recurring adjusted net profit is projected at RMB 249 million to RMB 275 million, up 64.62% to 81.81% year over year.

Q4 Margin Pressured by Forex Losses, Full‑Year Growth Trajectory Remains Intact

In 2025, CIG Tech’s high‑speed optical module business benefited from robust global AI and data center construction momentum. Driven by the official launch of its Jiaxing manufacturing base, continuous capacity ramping at its Malaysian facility, and phased capacity expansion across domestic and overseas production sites, the company achieved substantial year‑over‑year growth in order volume and product shipments. A notable increase in the revenue share of high‑speed, high‑margin optical modules further lifted the company’s overall gross profit margin.

In Q4 2025, the company’s Hong Kong equity financing proceeds, mainly held in Hong Kong dollars, were adversely affected by the synchronized depreciation of the HKD against the USD, resulting in a shift from forex gains to net forex losses. The company recorded approximately RMB 81.61 million in forex losses for the full year, creating short‑term pressure on Q4 profit growth. Nevertheless, the negative impact was temporary and did not alter the firm’s full‑year upward performance trend.

Silicon Photonics‑Centric Product Layout with Ample Upstream Material Reserves

CIG Tech has built a comprehensive high‑speed optical module product portfolio centered on silicon photonics technology. Its product lineup covers Retimed 1.6T 2×DR4/DR8, 1.6T 2×FR4, OSFP DR8, Gearbox 800G DR4, as well as mainstream LPO/LRO product variants. To mitigate temporary upstream supply tightness driven by strong industry‑wide demand, the company has established a diversified supply mechanism for core components.

CIG Tech maintains in‑depth partnerships with three major silicon photonics chip suppliers via long‑term supply agreements and strategic investments to secure stable component sourcing. Key materials including lasers and DSP chips are fully covered by annual framework procurement contracts with sufficient inventory reserves. The company continues to strengthen upstream and downstream industrial collaboration to further enhance supply chain resilience and operational stability.

Deep JDM Partnerships with Core Clients Pave Way for Imminent 1.6T Volume Shipment

The North American market constitutes a core revenue pillar for CIG Tech. The company leverages the JDM (Joint Design Manufacturing) model to build deep, long‑term strategic partnerships with key global cloud customers, while actively advancing product qualification and verification with multiple emerging clients.

Fueled by robust global demand for high‑speed interconnect solutions, both 800G and 1.6T optical modules are witnessing strong market traction. CIG Tech is steadily expanding production capacity, with continuous output release from its Jiaxing and Malaysian factories and progressive construction of its new Mexican production base. Looking ahead to 2026, 800G optical modules will remain the company’s primary shipping product, while 1.6T optical modules are scheduled to kick off large‑scale volume shipments starting in Q1, with a clear sequential growth trajectory. Sustained technological iteration, expanded capacity deployment and diversified client expansion are expected to drive continuous earnings growth for the company in the long run.