Yangtze Optical Fiber and Cable's revenue and net profit are expected to grow simultaneously in 2025. The combined market value of A+H shares approaches 200 billion, reaching a new high.

Yangtze Business News ●Yangtze Business reporter Liu Qianwen

Under the new landscape of optical communications driven by a “dual-wheel” approach—traditional telecom markets and emerging intelligent computing data centers—the industry leader FiberHome Optoelectronics (601869.SH) has delivered a solid annual performance featuring steady growth and structural optimization.

Recently, FiberHome Optoelectronics officially released its 2025 annual report. The report shows that for the full year, the company achieved operating revenue of RMB 14.25B, up 16.85% year over year; and net profit attributable to parent company owners of RMB 814 million, up 20.40% year over year. Against the backdrop of structural adjustments in the global optical communications industry, FiberHome Optoelectronics has achieved high-quality development by leveraging breakthroughs in technology R&D and optimizing its business structure.

Notably, on March 30, FiberHome Optoelectronics surged to a limit-up close. Its share price and market capitalization both hit historical highs at the same time. The combined A+H total market value nearly reached RMB 200 billion, solidifying its position as a market-cap benchmark in the optical communications sector.

Hollow-core fiber technology achieves major breakthrough

According to the financial report, in 2025, FiberHome Optoelectronics achieved operating revenue of approximately RMB 14.25B, up 16.85% year over year; net profit attributable to shareholders of listed companies of RMB 814 million, up 20.40% year over year; and net profit after deducting non-recurring gains and losses of approximately RMB 516 million, up as much as 40.56% year over year. Even more striking is the improvement in profitability: the company’s full-year gross margin reached 30.7%, up 3.4 percentage points from 27.3% in 2024. In particular, in the fourth quarter, the single-quarter gross margin reached 35.7%, which also set the highest single-quarter record since listing. The sharp increase in profit was mainly driven by improvements in production efficiency, optimization of product mix, and a higher proportion of overseas high-margin businesses.

As a leading enterprise in the global fiber and cable industry, FiberHome Optoelectronics has always treated R&D innovation as its core development strategy. In 2025, the company continued to increase R&D spending. Full-year R&D expenses totaled RMB 894 million, up 13.61% from RMB 787 million in the previous year, with R&D spending accounting for 6.28% of operating revenue.

Sustained growth in R&D investment has led to fruitful technological results. In 2025, the company took the lead in formulating 2 international standards and 1 national standard; and participated in formulating 2 international standards, 7 national standards, 18 industry standards, and 12 group standards. In terms of intellectual property, in 2025 the company applied for 283 patents and obtained 319 authorized patents, with its technical discourse power continuing to strengthen.

In key product areas, the company’s hollow-core fiber technology achieved a major breakthrough, reaching the world’s lowest attenuation of 0.04dB/km. Compared with conventional solid-core optical fibers, the transmission latency is reduced by 31%, and transmission speed is increased by 47%. The company has already built a complete industrial chain from preform preparation to cable testing. The drawing length of a single preform reaches 91.2 kilometers. It has successfully deployed more than ten commercial and pilot projects, helping three domestic telecom operators complete the deployment of the world’s first commercial hollow-core fiber line.

Share price and market capitalization both hit historical highs

In 2025, FiberHome Optoelectronics actively seized opportunities from the development of artificial intelligence and computing networks. Its business structure continued to optimize, forming a coordinated growth pattern across multiple segments. Among them, the Optical Interconnect Components segment performed especially well. For the full year, it generated operating revenue of RMB 3.14B, up 48.58% year over year; gross margin reached 39.73%, up 10.45 percentage points from the previous year.

Net cash flow from operating activities was particularly strong, reaching approximately RMB 3.65B, up 104.83% year over year. This reflects the company’s strong operating quality and efficient use of funds. In terms of capital market actions, in December 2025, the company successfully completed the placement of 70 million H shares. Net proceeds were approximately HKD 2.23B, used to support overseas business expansion.

Overseas market expansion has delivered remarkable results, serving as another important support for the company’s growth. In 2025, the company’s overseas business revenue reached RMB 6.09B, up 47.81% year over year, and the proportion of operating revenue increased to 42.74%. The company’s eight production bases in six countries, including Indonesia, South Africa, and Brazil, have continued to play their roles. Its localized production and sales network has been continuously improved. Against the backdrop of a rebound in telecommunications infrastructure construction in Southeast Asia and Europe/US, the overseas business achieved high-quality growth. Meanwhile, the domestic market also advanced steadily. The Optical Transmission Products segment generated revenue of RMB 8.35B, up 6.09% year over year; gross margin increased to 35.90%. With advantages across the full industrial chain, the company consolidated its leading position in the market.

During the reporting period, the effectiveness of the company’s diversification strategy became evident. Substantial progress was made in areas such as industrial lasers, ocean energy and engineering, and high-purity quartz materials. Overall, the company’s diversified business revenue totaled approximately RMB 5.90 billion, and the share of operating revenue for the first time exceeded 40%. In addition, the company plans to distribute cash dividends of RMB 2.95 per 10 shares to all shareholders (including tax). Total expected dividends amount to RMB 244 million, providing a steady return to investors through robust dividend payments.

Notably, on March 30, FiberHome Optoelectronics surged to a limit-up close. Its share price and market capitalization both hit historical highs at the same time. In the A-share market, the stock opened at RMB 269.28 per share that day and closed at RMB 301.69 per share, up 10%. In the Hong Kong stock market (06869.HK), it also strengthened, closing at HKD 197.0 per share, up 14.34%, with the day’s high at HKD 201.4 per share. In terms of market capitalization, the combined A+H total market value nearly reached RMB 200 billion, keeping it firmly as a benchmark for market cap in the optical communications sector.

Editor-in-charge: ZB

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