Where will the expansion funding come from, and what will it be used for?

  • Cambridge Technology’s board approved a change in the use of proceeds from its H-share offering, with a total of HK$1.7685 billion to be redirected to expanding optical module capacity.
  • Of that amount, HK$1.2754 billion was originally earmarked for broadband and wireless product capacity, while HK$493.1 million comes from the remaining balance of funds allocated to certain R&D and marketing activities. The funds will be used for production machinery, equipment and raw materials, as well as upgrades to existing equipment and greater automation of production processes.

How did third-quarter results change?

  • The company reported third-quarter revenue of 2.216 billion yuan, up 67.26% year on year; net profit attributable to shareholders was 433 million yuan, up 212.81% year on year.
  • Net profit attributable to shareholders was 209 million yuan in the second quarter, implying quarter-on-quarter growth of approximately 106% in the third quarter. A summary of company announcements shows that high-speed optical modules now account for more than 50% of revenue.

How are deliveries and capacity expansion progressing for high-speed optical modules?

  • A research report published by China Fortune Securities on 3 September said the company has shipped 800G optical modules in volume to key overseas customers, while 1.6T products are being shipped in small volumes; some next-generation silicon photonics 800G products have been qualified by several major overseas customers and were shipped in large volumes in the first half of the year.
  • The company plans to raise annualized optical module production capacity to at least 6 million units by the end of 2026 and accelerate construction of its Mexico plant, aiming to meet its planned local optical module capacity expansion target in early 2027 to ensure delivery of orders to key North American customers.
  • In R&D, the company is developing products ranging from 800G to 1.6T, using 3nm DSP and high-density integrated silicon photonics as its technology foundation, while advancing low-power architectures and near-package and co-packaged optics projects.