ZJK Industrial revenue rises 37% on AI infrastructure demand
ZJK Industrial (NASDAQ: ZJK), a Shenzhen-based precision parts and hardware manufacturer, has reported revenues of $33.74 million for the six months ended 30 June 2026, a 36.6% increase on the $24.70 million recorded in the equivalent period of 2025. The company attributed the growth primarily to a 35.3% rise in average selling prices rather than volume gains, reflecting a deliberate shift in its product mix towards more complex, higher-value components.
Despite the strong top-line performance, net income fell to $5.24 million from $5.84 million in H1 2025. The squeeze came from costs rising faster than prices: cost of revenues jumped 57.1% year on year, driven by higher material procurement prices, expanded production of technically demanding new products and increased headcount. Gross margin contracted to 42.4% from 49.9% a period earlier.
AI infrastructure orders accelerate post-period
The headline strategic development sits outside the reporting window. ZJK said that subsequent to 30 June 2026 it secured large-volume purchase orders for AI infrastructure components from several unnamed major customers and has commenced deliveries. Chief executive Ning Ding cited the company's precision manufacturing capabilities, product reliability and production consistency as key differentiators in addressing the thermal and structural demands of high-density AI compute systems.
Liquid cooling is called out as a growing revenue category alongside the broader AI infrastructure segment. The connection is direct: as GPU cluster densities rise and power draw per rack increases, precision-machined components for cold plates, manifolds and chassis structures become technically more demanding and command higher prices. ZJK's ability to move from early-stage design collaboration through to mass production is the value proposition it is emphasising to prospective AI infrastructure customers.
Operating expenses grew to $8.64 million from $6.46 million, partly reflecting investment in international sales and marketing across North America, Singapore and Taiwan. The company is deliberately expanding its customer base beyond mainland China, where related-party sales still account for a meaningful share of revenue: related-party revenues were $9.36 million in H1 2026, or roughly 28% of the total.
Market context and competitive positioning
ZJK operates in a fragmented global market for precision-machined hardware components, competing with a broad range of Asian contract manufacturers, many of which are also pivoting towards AI infrastructure as hyperscaler and accelerator-vendor capital expenditure accelerates. The company's stated differentiators, design-to-production integration and quality management systems, are not unique claims in the sector, but the ability to win named large-volume orders from major AI customers would be a meaningful proof point if those customers are eventually disclosed.
The liquid-cooling component market specifically is attracting significant attention as data-centre operators confront power density constraints. Suppliers of cold plates, heat exchangers and precision fittings are benefiting from a structural shift away from air-cooled racks. Competitors range from specialist thermal-management firms to diversified contract manufacturers with sheet-metal and CNC capabilities.
ZJK's cash position strengthened to $23.16 million at 30 June 2026, up 24.4% from $18.62 million at year-end 2025, providing headroom for the capacity investments the company says are necessary to support production ramp-up. Research and development spending remains modest at $0.28 million for the half, though the company says it plans to increase technical capabilities over time. Investors will look for the post-period AI infrastructure orders to translate into revenue visibility in the H2 2026 results and for the customer base to be named as relationships mature.