en.Wedoany.com Reported - Ruijie Networks' self-developed high-speed optical module product line has entered a phase of intensive delivery and iteration: 400G LPO optical modules have achieved mass production and delivery, 800G optical modules are in the small-scale sample adaptation stage, and 1.6T LPO products are under development, with samples expected to be provided within 2026. These milestones were confirmed during the earnings briefing on May 14.
Ruijie Networks' self-developed 400G and 800G high-speed optical modules are primarily targeted at internet companies requiring high-performance computing network setups. They are sold as part of data center switch products and overall solutions procured by customers. Optical modules are not marketed as standalone products but are embedded within the integrated delivery system of data center switches, forming a unified "switch + optical module" solution. This approach not only strengthens the synergy with switch products but also reduces compatibility risks for customers in device interconnection.
The LPO technology path is key to understanding this progress. By removing the digital signal processor chip from the link, LPO drastically reduces the overall power consumption of the module. Measured data for 1.6T-DR8 optical modules shows this solution can achieve up to a two-thirds reduction in power consumption, meeting the power management requirements for high-speed interconnects in hyperscale data centers. Ruijie Networks' choice to enter the optical module track via the LPO route aligns with the industry's technological evolution direction.
The company's 2025 annual report shows full-year operating revenue reached 14.316 billion yuan, a year-on-year increase of 22.37%; net profit attributable to shareholders of the listed company was 696 million yuan, a year-on-year increase of 21.30%. Direct sales model revenue reached 7.782 billion yuan, a year-on-year increase of 43.61%, with its proportion of total revenue rising to 54.36%. AI intelligent computing center network solutions have been deployed at scale for internet enterprises such as Alibaba, ByteDance, Baidu, and Tencent. Accelerated delivery of orders for internet data center switch products has become the main engine driving revenue growth.
The earnings briefing addressed the growth prospects for data center switches: leading domestic cloud service providers have successively launched and implemented capital expenditure plans at the hundred-billion-yuan level, with ByteDance and Alibaba recently significantly increasing their capital expenditure plans. Sustained high demand for computing power network construction directly drives the demand for intelligent computing network data center switching equipment. 800G switches have already won bids for customer commercial procurement frameworks for the second half of 2025 to the first half of 2026. Since 2025, the revenue share of 400G and 800G high-speed switches in data center scenarios has continued to increase significantly, and this growth trend is expected to continue in 2026.
From the perspective of product generation rhythm, the optical module layout covers three key nodes with clear gradients: the currently mainstream deployed 400G, the ramping-up 800G, and the next-generation 1.6T. 400G LPO has entered the mass delivery stage, directly serving existing data center expansion needs; 800G is in the small-scale sample adaptation period, preparing for the next-generation network architectures of leading customers; the advancement of 1.6T R&D reserves technical solutions for computing power network upgrades beyond 2026. In March 2026, the company and Alibaba Cloud jointly released an LPO optical module adaptation solution for 102.4Tbps switches at the OFC 2026 conference, further validating their technical synergy capabilities.
In the first quarter of 2026, Ruijie Networks' main business revenue was 2.999 billion yuan, a year-on-year increase of 18.26%; net profit attributable to the parent company was 123 million yuan, a year-on-year increase of 14.59%. A significant increase in prepayments for goods is closely related to sufficient orders on hand and the persistently tight supply in the international chip market. To ensure a stable supply of core materials, the company has locked in chip production capacity with upstream suppliers in advance, reflecting expectations for future delivery schedules.
Founded in 2003 and headquartered in Fuzhou, Fujian, China, Ruijie Networks' main business is the R&D, design, and sales of network equipment, network security products, and cloud desktop solutions. In 2025, overseas business revenue was 2.659 billion yuan, a year-on-year increase of 42.22%, with the number of overseas partners growing to over 2,600, and its revenue share increasing to 18.57%.
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