CIG Shanghai (603083) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 reached ¥2.71 billion, up 32.92% year-over-year; net profit attributable to shareholders was ¥327.75 million, up 171.08% year-over-year; adjusted net profit (excluding non-recurring items) was ¥319.49 million, up 168.42% year-over-year.

• High-speed optical module business was the main growth driver, benefiting from strong AI/data center demand and product mix optimization, leading to higher gross margins.

• Cash dividend of ¥0.09 per share (totaling ¥33.14 million, 10.11% payout ratio) was proposed for H1 2026.

• R&D investment increased 29.89% year-over-year to ¥208.84 million, focusing on high-speed optical modules, next-gen broadband, and wireless solutions.

Financial highlights

• Operating income: ¥2.71 billion (+32.92% YoY); net profit: ¥327.75 million (+171.08% YoY); adjusted net profit: ¥319.49 million (+168.42% YoY).

• Basic and diluted EPS: ¥0.93 (+106.67% YoY); adjusted EPS: ¥0.91.

• Gross margin improved due to product mix shift toward high-value optical modules.

• Net assets: ¥9.37 billion (+25.72% from year-end 2025); total assets: ¥13.64 billion (+14.58%).

• Operating cash flow: -¥1.11 billion (declined due to increased raw material procurement).

Outlook and guidance

• H2 2026 will focus on ramping up 1.6T and LPO/LRO low-power optical modules, expanding Wi-Fi 8 and 50G PON product lines, and further AI integration.

• Continued investment in global production capacity, especially in Malaysia, Mexico, and Jiaxing.

• Management expects ongoing demand from AI/data center and telecom sectors, but notes risks from global supply chain, raw material price volatility, and geopolitical factors.