[Tianfeng Communications] Zhongji Innolight: Positively Refutes Price Cut Rumors, 4-8 Billion Yuan Buyback Proposal Shows Confidence

English summary

Optical interconnect sector saw significant adjustment due to market rumors. Company clearly denied rumor that "1.6T optical module price drops to $600 or lower in 2027"; meanwhile, Chairman and President Liu Sheng proposed buyback of 4-8 billion yuan of A shares, demonstrating confidence in long-term development prospects and intrinsic value. 1. 1.6T significant price cut rumor untrue, industry pricing system still healthy: Company's actual quotes for 1.6T for 2027 are far above $600, mainstream peers also do not have such low quotes. Because product prices vary significantly by customer, transmission distance, and technical routes like EML and silicon photonics, a single model quote cannot represent industry weighted average ASP. Current industry is still in state of strong demand, tight core materials, and scarce high-end product delivery capability; even with normal annual price reduction, there is no industrial basis for significant price drop. ...