Suzhou TFC Optical Communication (300394) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 reached ¥2.83 billion, up 15.15% year-over-year; net profit attributable to shareholders was ¥1.20 billion, up 33.92% year-over-year.

• Growth driven by robust demand in global AI and data center markets, despite some supply chain constraints.

• R&D investment increased by 55.32% year-over-year to ¥194.93 million, focusing on next-gen optical technologies.

• The company maintained a strong global presence, with significant expansion in Thailand and Jiangxi production bases.

Financial highlights

• Operating cash flow was ¥1.00 billion, up 64.57% year-over-year.

• Gross margin for optical interconnect components was 60.67%, up from 50.54% year-over-year.

• Basic EPS was ¥1.1057, up 33.55% year-over-year; diluted EPS was ¥1.1038, up 33.44%.

• Total assets at period-end were ¥7.59 billion, up 17.65% from year-end 2025.

• Net assets attributable to shareholders were ¥6.25 billion, up 13.49% from year-end 2025.

Outlook and guidance

• The company expects continued growth driven by AI infrastructure and data center expansion globally.

• Ongoing investments in R&D and capacity expansion, including a new Suzhou headquarters and super factory, are planned for 2027.