Yangtze Optical Fibre And Cable (6869) H1 2026 earnings summary

Executive summary

• Operating income for H1 2026 reached RMB9,809.0 million, up 53.6% year-over-year, driven by strong AI data center demand and improved product mix.

• Gross profit surged 189.7% to RMB5,234.2 million, with gross margin rising to 53.4% from 28.3% in H1 2025.

• Net profit attributable to equity shareholders was RMB2,924.5 million, up 889.0% year-over-year; adjusted net profit (excluding non-recurring items) rose 1680.0%.

• Basic earnings per share increased to RMB3.56; diluted EPS was RMB3.55.

• The Board proposed an interim dividend of RMB1.06 per share (before tax), totaling RMB877.6 million.

Financial highlights

• Revenue: RMB9,809.0 million (+53.6% YoY); gross profit: RMB5,234.2 million (+189.7% YoY); net profit: RMB2,924.5 million (+889.0% YoY).

• Domestic and overseas revenues both grew 53.6% YoY; domestic at RMB5,662.8 million, overseas at RMB4,146.2 million.

• Operating cash flow: RMB1,826.1 million (H1 2025: RMB842.2 million).

• Capital expenditures: RMB671.3 million (H1 2026), up from RMB537.4 million (H1 2025).

• Gearing ratio: 24.5% (30 June 2026: 20.8% at end-2025).

Outlook and guidance

• AI-driven demand for optical fibre in data centers expected to grow at 20.74% CAGR through 2030, becoming the main industry growth driver.

• Global optical fibre demand in 2026 projected to exceed 670 million fibre kilometers, with data center-related demand up 69% YoY.

• The company will continue to invest in R&D, expand global production capacity, and deepen strategic partnerships to maintain leadership in AI optical connectivity.