YOFC, a leader in optical fiber and cable, delivered an earnings report exceeding expectations for 2025.
The financial report shows that full-year operating revenue was approximately 14.252 billion yuan, a year-on-year increase of 16.85%; Non-Recurring Net Profit Attributable To Shareholders was approximately 516 million yuan, a year-on-year surge of 40.56%. The full-year Gross Profit Margin reached 30.7%, breaking through 30% for the first time since its listing in 2014, with the Gross Profit Margin for the fourth quarter alone reaching a record high of 35.7%.
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Operating cash flow performance was equally strong. The net cash flow generated from operating activities for the full year was approximately 3.653 billion yuan, a year-on-year increase of over 104%, confirming the substantial improvement in the company's profitability quality. In terms of capital operations, the company completed a placement of 70 million H shares in December, raising net proceeds of approximately 2.229 billion Hong Kong dollars, making it the largest H-share placement project by scale in the optical communications industry since 2015. In August, it issued the nation's first technology innovation bond in the optical communications industry at 500 million yuan with an issuance rate of only 1.9%, demonstrating high market recognition of the company's credit.
Regarding dividends, the company plans to distribute a cash dividend of 2.95 yuan (tax inclusive) per 10 shares, totaling approximately 244 million yuan; combined with the 197 million yuan A-share buyback completed during the year, the total dividend payout is about 442 million yuan, accounting for 54.26% of the net profit attributable to the parent company, significantly increasing shareholder returns.
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<h2>Dual-Wheel Drive: High Growth in Optical Interconnect Components and Optimized Structure for Optical Transmission Products</h2>
From a business segment perspective, both of the company's two core segments achieved positive growth, but with significant differences in growth rates.
The optical transmission product segment achieved revenue of approximately 8.346 billion yuan, a year-on-year increase of 6.09%, and its Gross Profit Margin increased by 4.22 percentage points to 35.90%. The growth drivers mainly came from two aspects: continuous improvement in production efficiency of ordinary single-mode optical fiber and cable, with a year-on-year decrease of 8.30% in direct material costs; and accelerated large-scale commercialization of new fiber products, with G.654.E ultra-low-attenuation large-effective-area optical fiber experiencing explosive growth in 2025. China Mobile's centralized procurement in June reached a total of 3.14 million core kilometers, an increase of approximately 156% year-on-year, while China Telecom's first framework procurement of G.654.E optical cables in October was about 2.24 million core kilometers; YOFC won the largest share in both cases.
The optical interconnect components segment was the biggest highlight of the year. Its subsidiary, Changxin Bochuang, seized the opportunity of AI computing power infrastructure construction, achieving revenue of approximately 3.144 billion yuan, a year-on-year increase of 48.58%, with a Gross Profit Margin of 39.73%, an increase of 10.45 percentage points year-on-year. Changxin Bochuang has established a &#34;1+3&#34; global collaborative production system consisting of &#34;Indonesia + Jiaxing, Chengdu, and Hanchuan,&#34; with mass supply capabilities for high-speed products such as the 400G/800G AEC series, multimode 400G SR4, and 800G SR8. R&amp;D investment accounted for over 5% of its revenue.
<h2>Overseas Business: Revenue Share Exceeds 40%, Becoming a Significant Growth Pole</h2>
In 2025, YOFC's overseas business revenue was approximately 6.092 billion yuan, a year-on-year increase of 47.8%, further increasing its share of operating revenue to a record high of 42.7%. The recovery of telecommunications infrastructure construction in Southeast Asia, Europe, and the United States, combined with the advantages of localized operations at the company's eight production bases in six countries including Indonesia, South Africa, Brazil, Poland, Germany, and Mexico, led to simultaneous increases in volume and price for overseas business.
By region, revenue from mainland China was approximately 8.160 billion yuan, a year-on-year increase of 1.04%, accounting for 57.26%; overseas revenue was approximately 6.092 billion yuan, accounting for 42.74%. The Gross Profit Margin of the overseas business was 35.29%, a year-on-year increase of 4.40 percentage points, higher than the 27.88% of the domestic business, indicating a superior profit structure.
The net proceeds of approximately 2.229 billion Hong Kong dollars from the H-share placement completed in December will be used specifically to support overseas business development, providing ample ammunition for the company to further expand its international market share.
<h2>Diversified Businesses: Revenue Share Surpasses 40% for the First Time, Substantial Progress in All Segments</h2>
In 2025, the company's diversified business revenue was approximately 5.90 billion yuan, accounting for over 40% of operating revenue for the first time.
In the industrial laser field, the company completed the acquisition and integration of Pentium Laser (Zhejiang) Co., Ltd. (holding 60.76%), establishing a complete industry chain from upstream specialty optical fibers to midstream lasers and downstream laser equipment. In marine energy and engineering, it has developed full-chain capabilities for marine energy transmission, marine optical network systems, and engineering construction services to meet the demand for large-scale development of deep and far-sea wind power. In high-purity quartz materials, the R&amp;D and industrialization project for YOFC optical quartz components was completed, achieving breakthroughs with key customers in core markets.
In the third-generation semiconductor field, the affiliated company YOFC Advanced Semiconductor completed the first wafer output at its Wuhan base in May 2025. However, it is currently in a period of large-scale investment, incurring a loss of approximately 1.6 billion yuan during the reporting period, with an investment loss of about 342 million yuan recognized under the equity method.
<h2>Expenses and Cash Flow: Continued R&amp;D Investment and Significant Improvement in Cash Flow</h2>
In 2025, the company's R&amp;D expenses were approximately 894 million yuan, a year-on-year increase of 13.61%, accounting for 6.28% of operating revenue; the number of R&amp;D personnel was 1,428, accounting for 13.48% of total employees. The company possesses the only national key laboratory in China's optical fiber and cable industry. It applied for 283 patents and was granted 319 patents throughout the year, while leading the formulation of 2 international standards.
Financial expenses increased by 37.95% year-on-year to 264 million yuan, mainly due to decreased interest income, exchange losses, and increased interest expenses. Credit impairment losses were approximately 179 million yuan, a year-on-year increase of 25.69%. The balance of bad debt provisions for accounts receivable reached 801 million yuan, requiring continued attention to collection risks.
Net cash flow from operating activities was approximately 3.653 billion yuan, doubling year-on-year, mainly due to growth in operating performance and improved efficiency in the use of operating funds. At the end of the period, monetary funds were approximately 5.764 billion yuan, a substantial increase of 75% from the beginning of the year, primarily due to the proceeds from the H-share placement. The company's asset-liability ratio was 51.12%, and its current ratio was 1.71, indicating that its financial structure remains stable.

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YOFC's 2025 revenue reached 14.252 billion yuan, a year-on-year increase of 16.85%, while Non-Recurring Net Profit Attributable To Shareholders surged by 40.56% and the Gross Profit Margin exceeded 30% for the first time. Revenue from the optical interconnect components business grew by 48.58%, the share of overseas revenue rose to 42.7%, and the share of diversified businesses surpassed 40% for the first time. Operating cash flow doubled to 3.653 billion yuan

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YOFC

YOFC's 2025 Non-Recurring Net Profit Attributable To Shareholders Increased by 40.6% YoY, Gross Profit Margin Surpasses 30% for the First Time | Earnings Insights