Yangtze Optical Fibre And Cable (6869) H1 2025 earnings summary

Executive summary

• Revenue rose 19.4% year-over-year to RMB6,384.5 million, with gross profit up 21.1% to RMB1,806.6 million.

• Net profit attributable to equity shareholders fell 21.7% year-over-year to RMB295.7 million, mainly due to non-recurring items; EPS was RMB0.39 (H1 2024: RMB0.50).

• Overseas revenue surged 52.8% year-over-year, now comprising 42.3% of total revenue.

• Revenue from domestic customers grew 2.9%.

• No interim dividend was declared for the period.

Financial highlights

• Cost of sales was RMB4,577.9 million, up 18.7% year-over-year, representing 71.7% of revenue.

• Gross margin improved to 28.3% (H1 2024: 27.9%).

• Net cash from operating activities: RMB842.2 million (H1 2024: RMB213.6 million); net cash used in investing: RMB1,045.2 million; net cash used in financing: RMB541.0 million.

• Gearing ratio rose to 48.6% from 41.4% at year-end 2024.

• Capital expenditures totaled RMB537.4 million, mainly for overseas expansion and domestic optimization.

Outlook and guidance

• Domestic telecom market stable but facing declining capex and price pressure; operator capex expected to decline 9.1% in 2025.

• Global optical cable demand is forecast to grow moderately by 1.9% in 2025.

• Data center and AI-driven demand expected to support growth in high-end optical products.

• Company continues to invest in R&D, international expansion, and diversified business lines.

• No interim dividend recommended; focus remains on long-term growth and capital allocation.