Ruijie Networks reported strong first-half 2026 growth as China’s AI computing infrastructure buildout boosted demand for data center switches (hardware directing traffic inside server facilities). Operating revenue rose 32.83% year-on-year to 8.83 billion yuan, or about $1.3 billion, while net profit attributable to shareholders climbed 53.54% to 694 million yuan, or about $102.9 million, showing profitability improved faster than sales. Adjusted net profit reached 677.06 million yuan, up 56.56%, basic earnings per share increased 53.55% to 0.6234 yuan, and weighted average return on equity stood at 13.09%. The company said its main growth engine was the data center switch business serving internet clients, as large-model training and AI inference (running models on new data) continued to drive investment in computing infrastructure. R&D spending rose 21.64% to 1.02 billion yuan, total assets increased 40.74% from the prior year-end to 14.39 billion yuan, and operating cash flow deteriorated to negative 3.02 billion yuan, down 861.51% year-on-year. The report linked the broader opportunity to the integration of China’s digital economy with the real economy, but also flagged sluggish demand recovery in some sectors, international trade frictions and geopolitical risks. The results suggest AI spending is spreading beyond chips and servers into network interconnect infrastructure, even as working capital pressure remains a key issue for the second half and beyond.