---
title: "Zhongji Innolight's revenue rose 178% and its stock fell 12.69% on the Marvell-Lumentum merger's parts risk"
description: "Nine-month revenue up 178 percent, profit up 212 percent, a buyback with cancellation, and the Shenzhen A-share still fell 12.69 percent the session after Marvell confirmed buying Lumentum. The results measure demand; the merger review in China measures whether Innolight keeps buying its DSPs and lasers from one owner."
publisher: "The Inference"
section: "Chips"
published: 2026-11-03T16:17:24.358Z
modified: 2026-11-03T16:17:24.358Z
canonical: https://theinference.org/article/zhongji-innolight-s-revenue-rose-178-and-its-stock-fell-12-69-on-the-marvell-lumentum-merger-s-parts-risk
language: en
keywords: "Zhongji Innolight, Marvell Technology, Optical Networking, AI Infrastructure, Earnings"
---

# Zhongji Innolight's revenue rose 178% and its stock fell 12.69% on the Marvell-Lumentum merger's parts risk

> Nine-month revenue up 178 percent, profit up 212 percent, a buyback with cancellation, and the Shenzhen A-share still fell 12.69 percent the session after Marvell confirmed buying Lumentum. The results measure demand; the merger review in China measures whether Innolight keeps buying its DSPs and lasers from one owner.

[Zhongji Innolight](https://theinference.org/markets/companies/zhongji-innolight), the Shenzhen maker of the 800G and 1.6T optical modules that link AI accelerators, just reported the strongest stretch in its history, and its A-share still [fell 12.69 percent in the first Shenzhen session](https://sg.finance.yahoo.com/quote/300308.SZ/) after [Marvell](https://theinference.org/markets/companies/marvell) [confirmed its $115 billion purchase of Lumentum](https://investor.marvell.com/news-events/press-releases/detail/1040/marvell-and-lumentum-to-combine-creating-a-category-leader-in-ai-connectivity) [1]. The quarter measures demand for the modules. The sell-off measures something the quarter cannot: whether the makers of the parts inside those modules will keep selling them to Innolight at all.

The results are not the problem. Nine-month revenue rose 178 percent and attributable net income 212 percent, on AI-datacenter demand for 800G and 1.6T modules, the two fastest data-rate classes in AI interconnect [4]. Third-quarter net profit rose 174 percent year on year [3], gross margin ticked up quarter on quarter [2][5], the company has [bought back about RMB 5 billion of stock and will cancel all of it](https://news.futunn.com/en/post/1003034785/zhongji-innolight-300308-strong-q3-performance-growth-share-buyback-and) [2], and major overseas customers have placed orders extending through 2027 [2]. [Goldman Sachs](https://theinference.org/markets/companies/goldman-sachs) [cut its Hong Kong target to HK$2,829](https://news.futunn.com/en/post/1003069151/major-banks-goldman-sachs-cuts-zhongji-innolight-03308-hk-target) anyway [5].

*Chart: **Innolight grew revenue 178 percent and profit 212 percent in nine months** Bars ranking Zhongji Innolight's reported year-on-year growth rates for the first three quarters of 2026.*

*Year-on-year growth over the nine months to October 29, 2026, and in the third quarter, per Innolight's interim report as summarized by Quartr and reported by Reuters. Sources: TradingView/Quartr, TradingView/Reuters. [3][4]*

## One owner would hold both halves of every module

As we reported on November 2, Marvell, a chipmaker, agreed to buy [Lumentum](https://theinference.org/markets/companies/lumentum), an optical-components maker, in an all-stock deal at $1,132 a Lumentum share, a 23.9 percent premium, closing expected in the first half of 2028 [6].

What is new is what the combination does to Innolight's supply chain. Every high-end module pairs a digital signal processor (DSP), the chip that drives and cleans up the optical signal, with lasers. Innolight buys its DSPs from Marvell and its laser sources from Lumentum, and Chinese module makers, which TrendForce says lead the world in 800G and 1.6T transceivers, rely heavily on both [7]. After the merger, one company would own both. TrendForce warns the merged group, at nearly 7 percent of 2026 wired-communications semiconductor revenue and behind only [Nvidia](https://theinference.org/markets/companies/nvidia) and [Broadcom](https://theinference.org/markets/companies/broadcom), [could restrict rivals' access to lasers or bundle lasers with its own DSPs, and expects China's regulators to weigh exactly that in the merger review](https://www.trendforce.com/presscenter/news/20261103-13294.html) [7].

A replacement DSP exists in theory, but switching means re-qualifying a module design, which costs quarters. That is why a parts risk discounts a company growing at 178 percent.

## China's approval is the next dated event

The US side is already moving: [a proposal to ban imports of new Chinese-made transceivers](https://www.ynetnews.com/business/article/syyd00ilpzl) is live, and it points demand toward Innolight's American competitors such as Lumentum [8]. Now the parts question sits in front of Chinese regulators, who must approve the merger. Watch whether their approval comes with conditions on supply of lasers and DSPs. Those conditions, more than any earnings print, decide whether the fastest-growing optical business in AI keeps its inputs.

## Takeaway

Innolight's record nine months measure AI-optics demand; the Marvell-Lumentum merger, pending China's approval, decides whether its DSPs and lasers end up under one owner and whether its module designs still qualify.

## Sources

1. [Yahoo Finance Singapore, Zhongji Innolight Co., Ltd. (300308.SZ) quote, 3 November 2026 close](https://sg.finance.yahoo.com/quote/300308.SZ/)
2. [Futu News / Open Source Securities, Zhongji Innolight (300308): Strong Q3 Performance Growth; Share Buyback and Cancellation Boost Confidence, 1 November 2026](https://news.futunn.com/en/post/1003034785/zhongji-innolight-300308-strong-q3-performance-growth-share-buyback-and)
3. [TradingView/Reuters, Zhongji Innolight Q3 Net Profit Up 173.7% Y/Y, 30 October 2026](https://www.tradingview.com/news/reuters.com,2026:newsml_L3N46F18Y:0-zhongji-innolight-q3-net-profit-up-173-7-y-y/)
4. [TradingView/Quartr, Zhongji Innolight Co.: AI-driven optical demand propelled 9M growth, 30 October 2026](https://www.tradingview.com/news/urn:summary_document_report:quartr.com:4083647:0-zhongji-innolight-co-ai-driven-optical-demand-propelled-9m-growth-while-fx-and-investment-losses-tempered-earnings/)
5. [Futu News, Goldman Sachs cuts Zhongji Innolight (03308.HK) target price to HK$2,829, 2026](https://news.futunn.com/en/post/1003069151/major-banks-goldman-sachs-cuts-zhongji-innolight-03308-hk-target)
6. [Marvell Technology, Marvell and Lumentum to Combine, Creating a Category Leader in AI Connectivity, 2 November 2026](https://investor.marvell.com/news-events/press-releases/detail/1040/marvell-and-lumentum-to-combine-creating-a-category-leader-in-ai-connectivity)
7. [TrendForce, Marvell's Acquisition of Lumentum to Unite Optical and Electronic Capabilities, Potentially Challenging Broadcom's Market Leadership, 3 November 2026](https://www.trendforce.com/presscenter/news/20261103-13294.html)
8. [Ynetnews, Marvell to acquire Lumentum for $115 billion in massive AI infrastructure deal, 3 November 2026](https://www.ynetnews.com/business/article/syyd00ilpzl)


---

Zhongji Innolight's revenue rose 178% and its stock fell 12.69% on the Marvell-Lumentum merger's parts risk — The Inference. Canonical: https://theinference.org/article/zhongji-innolight-s-revenue-rose-178-and-its-stock-fell-12-69-on-the-marvell-lumentum-merger-s-parts-risk