en.Wedoany.com Reported - On June 5, ZTT received a bid-winning notice from a Chinese internet company, winning its FY27 annual consumables centralized procurement bidding project. The winning products are MPO fiber optic patch cords and accessories for data centers, with a bid amount of approximately RMB 1.518 billion (tax included). The project will commence in June 2026, with an expected execution period of one year.
The core value of this order lies in ZTT's data center fiber optic connectivity products entering the annual centralized procurement system of a leading internet company, forming a stable execution cycle with a scale exceeding RMB 1.5 billion. MPO fiber optic patch cords are key consumables in high-density data center cabling, typically composed of multi-fiber connectors and fiber optic cables, used for high-speed interconnection between switches, servers, optical modules, patch panels, and cabinets. As AI computing clusters scale up, internal data center connections are shifting from traditional low-density cabling to pre-terminated solutions that offer higher fiber counts, lower loss, faster deployment, and easier maintenance. Compared to standard duplex patch cords, MPO products can accommodate more fiber channels within limited cabinet space, adapting to high-speed port dense deployment and large-scale cluster expansion needs. This annual consumables procurement covers MPO fiber optic patch cords and accessories, indicating that customer demand is not a one-time engineering purchase but a cyclical consumption pattern centered around continuous data center construction, operational maintenance and replacement, expansion and upgrades, and link maintenance. For ZTT, such orders help convert its capabilities in fiber optic cables, specialty optical fibers, data center cabling, and optical communication materials into long-term supply relationships with internet data center customers.
Announcement information shows that the winning bid amount accounts for 2.89% of ZTT's audited operating revenue for 2025 and is expected to have a positive impact on the company's subsequent annual operating performance.
AI data center construction is reshaping the demand structure of the optical communication industry. In the past, fiber optic cable companies primarily generated demand around telecom operators' backbone networks, metropolitan area networks, access networks, and enterprise private lines; now, internal interconnection within intelligent computing centers, data center interconnection, and AI server clusters are becoming new incremental markets. ZTT previously mentioned in its MWC2026 presentation that it provides complete solutions including multi-core fibers, multi-core cables, and splicing accessories for high-speed data center scenarios, and is advancing the layout of next-generation specialty optical fiber technologies such as bend-insensitive four-core fibers and hollow-core fibers. Its Q1 2026 report also noted that, benefiting from the accelerated global deployment of AI computing power and digital new infrastructure, market demand for high-performance specialty optical fiber cables continues to increase. Winning this internet company's data center consumables project echoes this industry shift: data center customers increasingly value high-density, low-loss, rapidly deployable, and sustainably deliverable connectivity products, while suppliers need to simultaneously possess capabilities in fiber materials, cable manufacturing, connector processing, quality consistency, and batch delivery. MPO patch cords may seem like consumables, but in AI clusters, they undertake the fundamental task of high-speed signal connection. Insufficient link stability, loss control, or delivery consistency could directly impact cabinet deployment efficiency, network maintenance costs, and the stable operation of computing systems.
The focus of subsequent project execution will be on delivery pace, product yield, customer acceptance, and the release of annual procurement demand. The RMB 1.518 billion winning bid amount has provided ZTT with a clear order foundation in the data center optical interconnection consumables market, but the actual project contribution still depends on contract fulfillment, customer construction pace, and subsequent procurement arrangements. As AI computing power infrastructure continues to expand, MPO fiber optic patch cords, specialty optical fibers, high-density cabling, and low-latency optical interconnection products for data centers are expected to become important growth directions for optical communication companies transitioning from the traditional operator market to the intelligent computing center market.
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