During an institutional conference call, Zhongji Innolight elucidated that the surge in capital expenditures during the second quarter was mainly attributable to investments in equipment and factory infrastructure. Presently, the company is expanding several of its factories. A minor portion of these expansions is slated for completion in the latter half of 2026, while the bulk is projected to be finalized in 2027. Considering the extended lead time required for infrastructure investments, the majority of these expenditures are expected to start generating revenue from 2027 onwards, with the anticipation of a steady, quarter-by-quarter increase in future revenue.
