Yangtze Optical Fibre And Cable (6869) H2 2025 earnings summary

Executive summary

• Operating income rose 16.8% year-over-year to RMB14,252.1 million, with net profit attributable to equity shareholders up 20.4% to RMB813.7 million.

• Gross profit increased 31.5% to RMB4,380.3 million, with gross margin improving to 30.7% from 27.3% last year.

• Overseas revenue surged 47.8%, now accounting for 42.7% of total revenue, while domestic revenue grew 1.0%.

• Basic earnings per share rose to RMB1.07 (2024: RMB0.89).

• Final dividend proposed at RMB0.295 per share, up from RMB0.268 last year.

Financial highlights

• Cost of sales increased 11.3% to RMB9,871.8 million; raw material costs rose 8.3%.

• Selling and distribution, general and administrative, and R&D expenses rose 19.9%, 11.7%, and 13.6% respectively.

• Financial expenses increased 37.9% due to higher exchange losses and lower financial income.

• Net cash from operating activities more than doubled to RMB3,652.9 million.

• Gearing ratio improved to 20.8% from 41.4% last year.

Outlook and guidance

• China’s telecom sector continues robust growth, with 5G and gigabit network expansion outpacing targets.

• Global telecom infrastructure and AI-driven data center demand expected to drive further growth.

• Company aims to leverage AI, smart manufacturing, and international expansion for high-quality growth.