【6869 Performance】Yangtze Optical Fibre's profit increased by 20% last year, gross profit margin rose to 30.7%, and a final dividend of 0.295 RMB per share was declared.

Changfei Fiber Optics (06869)
announced that last year’s revenue increased by 16.8% year-on-year to 14.25 billion yuan (RMB, same below), with net profit up 20.4% year-on-year to 814 million yuan, and gross margin rising by 3.4 percentage points year-on-year to 30.7%. The company declared a final dividend of 0.295 yuan (before tax).

Significant Increase in Revenue from Optical Interconnect Components Division

By product division, the optical transmission products segment saw revenue increase by 6.1% year-on-year to 8.346 billion yuan, accounting for 58.6% of total revenue, down 5.9 percentage points from 2024; the optical interconnect components division’s revenue rose by 48.6% year-on-year to 3.144 billion yuan, with its share of total revenue increasing from 17.3% in 2024 to 22.1% last year; other products and services contributed to total revenue, increasing by 24.7% year-on-year to 2.214 billion yuan, with its share of total revenue rising by 1.1 percentage points to 19.3% compared to 2024.

The group’s total capital expenditure last year increased by 14.4% year-on-year to 1.544 billion yuan, mainly related to the expansion of localized production capacity overseas, continuous diversification projects, and optimization of domestic fiber optic preform and fiber production capacity.

As of the end of last year, the group’s debt-to-capital ratio was 20.8%, significantly down from 41.4% in 2024.

The company mentioned that hollow-core fiber optics are expected to break the physical limits of traditional solid-core fiber optics and are a key supporting technology for future high-capacity, low-latency communication networks. The group’s hollow-core fiber technology has achieved the lowest global attenuation of 0.04dB per kilometer, resulting in a 31% reduction in latency and a 47% increase in transmission speed compared to traditional solid-core fiber optics, with non-linear effects nearly zeroed out. Additionally, to date, the company has successfully deployed more than ten commercial and pilot hollow-core fiber application projects in regions such as Asia, Europe, and America, and aims to assist three domestic operator customers in completing the deployment of their respective global first commercial hollow-core fiber networks by 2025.

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