Hengtong Optic-Electric (600487) H2 2025 earnings summary

Executive summary

• Achieved revenue of RMB 66.85 billion in 2025, up 11.45% year-over-year; net profit attributable to shareholders was RMB 2.68 billion, down 3.20% year-over-year.

• Maintained leading positions in optical communications, smart grid, marine energy, and industrial/new energy sectors, with global expansion and technological innovation.

• Significant progress in high-end optical fiber, marine cable, and smart manufacturing, with multiple national and international awards for quality and innovation.

• Continued ESG leadership, with upgrades in international sustainability ratings and recognition as a green manufacturing leader.

Financial highlights

• Revenue: RMB 66.85 billion, up 11.45% year-over-year; net profit attributable to shareholders: RMB 2.68 billion, down 3.20%.

• Operating cash flow: RMB 2.81 billion, down 13.93% year-over-year.

• Gross margin: 12.42% for manufacturing, 29.70% for services.

• Basic EPS: RMB 1.10; weighted average ROE: 8.96%.

• Total assets: RMB 72.36 billion; net assets attributable to shareholders: RMB 31.78 billion.

• Proposed cash dividend: RMB 2.75 per 10 shares, total RMB 672 million.

Outlook and guidance

• 2026 is positioned as a strategic year, focusing on AI, 6G, deep-sea technology, and new energy.

• Plans to expand high-end optical fiber, marine energy, and international markets, with continued investment in R&D and smart manufacturing.

• Emphasis on sustainable growth, digital transformation, and global competitiveness.