Two optical modules from Zhaochirui Valley have been launched in batches, injecting new momentum int

In the wave of digitalization, optical communications serve as a highway for computing power transmission and dispatch, and its market demand is closely linked to the scale of computing power, with a positive correlation. Against this background, Zhaochi Ruigu, a subsidiary of Zhaochi Co., Ltd., which focuses on optical modules and optical device businesses, has recently ushered in key progress. The 100G SR4 optical modules and 10G SR4 optical modules have been officially launched in batches. This achievement not only provided strong support for the company's optical communications business to turn losses into profits in the second half of the year, but also was a vivid footnote for Zhaochi's steady advancement of industrial upgrading and transformation strategy. Looking back at the first half of 2025, Zhaochi's optical device and optical module business has achieved revenue of 309 million yuan, and its operating conditions have improved month by month. The batch launch of the two optical modules this time is undoubtedly the icing on the cake.

The three core advantages are to build the ultimate cost-effective products. The biggest highlight of the 100G SR4 optical module and 10G SR launched by Zhaochi Ruigu is that it achieves the ultimate balance of performance and cost, which relies on the company's scale, process and delivery. Full link competitive advantage.

Large-scale cost advantages: The scale code of reducing costs and increasing efficiency has laid a solid foundation for Zhaochi Ruigu with its strong lean intelligent manufacturing system. Zhaochirui Valley Jiangxi factory has accumulated rich experience in production process optimization after long-term precipitation. On this basis, Zhaochirui Valley purchases up to 9 million optical device raw materials per month, giving it strong bargaining power in the procurement process. At the same time, the current monthly production capacity of Zhaochirui Valley TO packaging reaches 9 million units, 6.5 million optical devices, and 700,000 optical modules. The huge production capacity scale effectively dilutes unit production costs through scale effects. In addition, the company's products can be seamlessly compatible with mainstream switch brands, so customers do not need to invest additional adaptation costs, further improving the cost performance and competitiveness of the products in the market, and truly creating value for customers.

Process advantages: Fine processes create reliable quality. Zhaochirui Valley has full-process processing capabilities from TO, OSA, optical engines to optical modules. By overcoming the bottleneck of the coupling process, the company effectively reduced the production cost of a single module. During the production process, relying on the industrial level 4.0 automated production line, the consistency of the optical module is as high as 99.98%, ensuring a high degree of stability in product quality; with the intelligent optical calibration system, each transmission channel is accurately aligned to minimize signal loss; Coupled with the strong support of a million-level aging test database, the average trouble-free working time (MTBF) of the product exceeds 300,000 hours. With such a sophisticated production process, Zhaochirui Valley has successfully created products with stable and reliable performance. At present, the 100G SR4 optical module and 10G SR have successfully passed the strict verification of many head communication equipment manufacturers at home and abroad, and achieved stable operation in large quantities in multiple data centers, winning market recognition with actual performance.

Strong delivery capabilities: Production capacity planning ensures supply timeliness Based on in-depth insight and accurate prediction of market demand, Zhaochi Ruigu has made a forward-looking climb plan on the production capacity of 100G SR4 optical modules and 10G SR while the products are launched in batches. Among them, the current production capacity of 10G SR optical modules is 100,000 units/month, which is expected to rapidly increase to 300,000 units/month by the end of 2025; the current production capacity of 100G SR4 optical modules is 50,000 units/month, which will jump significantly by the end of the year. 150,000 units/month. Adequate and reasonable production capacity planning has given Zhaochi Ruigu strong delivery capabilities, able to quickly respond to customer needs, and deliver high-quality services in a highly competitive market to win widespread trust and establish a good reputation.

Anchoring AI computing power demand and promoting continuous iteration of technology At present, AI large model training is in full swing, and computing power demand is exploding, which has also driven the construction boom of supporting infrastructure such as servers, switches, and optical modules. According to Lightcounting's forecast, between 2024 and 2029, the global optical module market will grow rapidly at a compound average annual growth rate (CAGR) of 22%, and the market size is expected to exceed US$37 billion by 2029. Among them, 10G/100G optical modules serve as the basic link for computing power transmission, and market demand is still on a rising channel. Moreover, these two types of optical modules have high technological maturity. In this market, manufacturers with cost advantages and stable delivery capabilities will have more competitive advantages and easier market share. Zhaochirui Valley's batch launch of 10G/100G optical modules accurately grasps this market situation.

At the same time, Zhaochirui Valley has set up a special R & D team to make every effort to tackle 400G/800G optical modules. In terms of production capacity layout, the company plans to flexibly adjust product production capacity in 2026 based on the actual needs of customers, which can not only ensure a stable supply of optical modules below 100G, but also quickly increase the output of 400G/800G optical modules. Through technology iteration and flexible production capacity planning, Zhaochi Ruigu continues to consolidate the foundation for the development of its optical communications business and effectively promotes the implementation of Zhaochi's overall strategy of industrial upgrading and transformation.

Planning and then moving forward, deepening the transformation strategy and laying out the batch listing of 10G/100G optical modules is a major breakthrough in Zhaochi's insistence on innovation-driven and using technology to enhance the company's high-tech content over the past 20 years. Looking back on the past, in 2011, when the TV ODM business was firmly on the revenue pillar, Zhaochi Co., Ltd. took the initiative to seek change, entered the LED field and deeply cultivated the entire industry chain, accumulating core capabilities such as innovation, efficiency, intelligent manufacturing, and lean management. In 2023, based on the extensibility of optical technology, the company acquired Zhaochi Ruigu and officially entered the optical communication track; at the end of 2024, it will invest another 1 billion yuan to build optical device optical module projects and optical chip projects.

At present, both major projects are progressing steadily. In terms of optical device optical module projects, optical device's BOSA devices have successfully won long-term orders from head customers, with annual shipments expected to reach 100 million units, with a market share of as high as 40%. Optical modules have successfully entered the supply chain of head customers, to the current batch launch of 100G SR4 optical modules and 10G SR products, and to the plan to achieve flexible shipment of 400G and 800G optical module products next year, Zhaochi has systematically promoted the development of the optical module business. In the first half of 2025, Zhaochi's optical device optical module business achieved revenue of 309 million yuan, achieving a leap from project establishment to commercialization in just half a year. The optical chip project has also achieved remarkable results and has been officially launched. 2.5G DFB laser chips have started to be rolled out in the company's own production lines, and are expected to lock in 50% of existing markets such as telecommunications and optical cats in the future.

In addition, the LED business, the core achievement of Zhaochi's first transformation, will continue to exert efforts in the first half of 2025, achieving a net profit of 403 million yuan, with net profit exceeding 60% for the first time. All links continue to use technological innovation to promote high-end business development. The two emerging high-tech businesses of optical communications and LED go hand in hand and make progress while maintaining stability, jointly injecting strong impetus into Zhaochi's transformation strategy.

Looking to the future, Zhaochi will continue to use optical technology as a link, actively explore more compound semiconductor application fields, unswervingly transform the strategic blueprint for industrial upgrading and transformation into reality, and continue to write new glory on the high-tech industry track. chapter.