T&S Communications CPO Supporting Products Enter Volume Production and Delivery

C114, August 20 (Shui Yi) — T&S Communications recently reported its results for the first half of 2026. During the reporting period, T&S Communications posted revenue of RMB 2.828 billion, up 15.15% year on year, and net profit attributable to shareholders of the listed company of RMB 1.204 billion, up 33.92% year on year.

At an investor relations event, T&S Communications said the year-on-year growth in revenue and net profit was mainly driven by the accelerating development of the global artificial intelligence industry and the construction of global data centers and AI supercomputing centers, which sustained steady growth in demand for high-speed optical components. At the same time, the company's first-half 2026 growth was somewhat constrained by temporary supply shortages of certain materials.

Capacity utilization remains high, with continued capacity expansion

On capacity utilization, industry demand for passive products was strong in the first half of 2026, and passive production lines maintained high operating rates overall, keeping capacity utilization at a high level. Based on current orders, the passive product line will continue to expand capacity in the second half to meet customers' ramp-up needs. The company is steadily advancing the allocation of personnel, facilities and production line resources to better support deliveries.

For active products, capacity utilization was low in the first half of this year due to temporary supply shortages of certain materials. The company has been actively coordinating resources across parties to resolve the supply constraints. Supply of the bottleneck materials has now improved, and capacity utilization is gradually rising.

Meanwhile, capacity construction and upgrades at T&S Communications' production bases progressed steadily in the first half of 2026. At the Thailand production base, both the passive and active optical component businesses are steadily ramping up output. The production building of Phase II at the Jiangxi production base has been delivered and put into use. Part of the workshops at the new Suzhou headquarters and super factory are expected to come online starting in 2027.

T&S Communications is also carrying out three-year plans for both its domestic operations and its Thailand facility, expanding production capacity at its bases in China and overseas in step with customers' ramp-up needs.

Putting "delivery assurance" first to strengthen material supply capabilities

T&S Communications said that during the first half of the year, temporary shortages of certain materials affected production ramp-up of its active optical component products. In response to these short-term shortages, the company promptly took proactive measures, including bringing in new suppliers, to ensure stable delivery of the relevant key materials.

Current conditions show that shortages of the relevant materials have gradually eased since the third quarter of 2026, with overall supply trending toward improvement. Going forward, the company will continue to strengthen supply chain management for at-risk materials, focusing on delivery assurance to improve material availability and better support customers' ramp-up needs.

Notably, as of June 30, 2026, the company's inventory stood at 929 million yuan, up 103% from the beginning of the year, mainly due to growth in raw material stocks. With "ensuring delivery" as its core priority, the company has implemented differentiated, dedicated risk control measures for bottleneck materials and increased strategic stockpiling, helping to boost production and delivery and meet customer demand to the greatest extent possible.

CPO-related supporting products have entered mass production and delivery

T&S Communications said that, drawing on its long-standing strengths in optical coupling, precision manufacturing and volume delivery, its CPO-related products have a solid foundation in performance, yield and delivery assurance.

FAU and ELS external light source products for CPO applications are currently being delivered. Product yields already meet the needs of volume production, and the company will build capacity ahead of demand based on customer forecasts to support their long-term ramp-up requirements.

Meanwhile, the company's R&D team is working closely with customers to develop next-generation optical connectivity solutions with higher density and more channels. As a technology innovation-driven company, it will continue to upgrade products and optimize technologies around customer needs, launching more competitive solutions across product generations and striving to create ongoing value for customers.