Yangtze Optical Fibre And Cable (6869) investor relations material

Executive summary

• Operating income for H1 2026 reached RMB9,809.0 million, up 53.6% year-over-year, driven by AI data center demand and improved product mix.

• Gross profit surged 189.7% to RMB5,234.2 million, with gross margin rising to 53.4% from 28.3% year-over-year.

• Net profit attributable to equity shareholders was RMB2,924.5 million, up 889.0% year-over-year; adjusted net profit (excluding non-recurring items) rose 1680.0%.

• Basic earnings per share increased to RMB3.56 from RMB0.39 year-over-year.

• Interim dividend of RMB1.06 per share proposed for H1 2026.

Financial highlights

• Domestic and overseas revenues both grew 53.6% year-over-year, with domestic at RMB5,662.8 million and overseas at RMB4,146.2 million.

• Cost of sales remained stable at RMB4,574.8 million, while raw material costs decreased 7.7%.

• Selling and distribution expenses rose 53.0% to RMB368.3 million; R&D expenses increased 29.9% to RMB501.2 million.

• Financial expenses increased 144.4% to RMB190.6 million due to exchange losses.

• Other income rose to RMB183.4 million, mainly from higher government grants.

• Income tax expense was RMB617.3 million, up from RMB39.9 million year-over-year.

Outlook and guidance

• AI-driven demand for optical fibre in data centers expected to grow at 20.74% CAGR from 2025–2030, becoming the main industry growth driver.

• Global optical fibre demand in 2026 projected to exceed 670 million fibre kilometers, with data center-related demand up 69% year-over-year.

• Company to focus on high-quality growth, deep AI integration, and global expansion, leveraging R&D and strategic partnerships.