Shanghai Conant Optical (2276) H2 2025 earnings summary

Executive summary

• Revenue rose 6.1% year-over-year to RMB2,186.0 million, with net profit up 30.2% to RMB557.7 million, driven by higher sales volume and product mix optimization.

• Gross profit margin improved to 42.0% from 38.6%, reflecting product mix upgrades and increased own brand sales.

• The XR (Extended Reality) business advanced, with new production lines and mass production for key projects, positioning for future growth.

• Final dividend proposed at RMB0.20 per share, total annual dividend RMB0.35 per share, up from RMB0.28 in 2024.

Financial highlights

• Revenue: RMB2,186.0 million (+6.1% YoY); Net profit: RMB557.7 million (+30.2% YoY); Basic EPS: RMB1.20 (+16.5% YoY).

• Gross profit: RMB917.5 million (+15.4% YoY); Gross margin: 42.0% (2024: 38.6%).

• Cost of sales increased marginally by 0.2% to RMB1,268.5 million.

• Other income and gains fell 23.7% to RMB44.1 million, mainly due to lower government grants and FX effects.

• Finance costs decreased 39.7% to RMB6.1 million due to lower interest expenses.

Outlook and guidance

• Plans to expand production capacity, especially in Japan and Thailand, and further automate processes in 2026.

• Continued investment in R&D, with focus on XR and smart glasses, expecting notable revenue and profit contributions from XR in 2026.

• Strategic collaborations with leading smart glasses developers and further product portfolio upgrades.