AVIC Optoelectronics: Holds a performance briefing on April 1, with participation from Beijing Dinsa Investment, Caitong Securities, and other institutions.

Securities Star News: On April 2, 2026, AVIC Optoelectronics (002179) issued an announcement stating that the company held a performance briefing on April 1, 2026. Beijing Dinsa Investment, Caitong Securities, Taiping Pension Insurance, Tianzhi Fund, Xi’an Jiangyue Private Fund, Xi’an Pubu Asset, Xinda Securities, Industrial Securities, Xingzheng Global Fund, Galaxy Fund, Yuanxin Yongfeng Fund, Great Wall Wealth Insurance, Caixin Fund, Great Wall Fund, Yangtze Securities, China Merchants Securities, China International Capital, China Galaxy Securities, China Shipping Fund, AVIC Securities, China Holland Life Insurance, China Citic Construction Investment Securities, Citic Securities, Chengdu Wanhxiang Huacheng Investment, BOC International Securities, BOC Fund, Zhongyuan Securities, Investors, Chengtong Securities, Chuangjin Hexin Fund, Dacheng Fund, First Shanghai Securities, Northeast Securities, Oriental Fortune Securities, Beijing Jiu Ruihe Private Fund, Oriental Securities, Dongxing Fund, Goldman Sachs (China) Securities, Gengji (Shanghai) Investment, ICBC-Ruixin Fund, Guanfu (Beijing) Asset, Everbright Securities, Guangdong Bangzheng Asset, Guangdong Guandatai Ze Private Fund, Guangdong Shengjian Private Fund, Beijing Jinggu Private Fund, Guangdong Zhengyuan Private Fund, Guizhou Railway Development Fund, Guohai Securities, National Manufacturing Transformation and Upgrading Fund, Guojin Fund, Guojin Securities, Lianlan Fund, Lianlian Minsheng Securities, SDIC Ruian Fund, Guoxin Securities, Beijing Shennong Investment, Yuanxin Securities, Hainan Jiayue Private Securities Fund, Hangzhou Shenwo Investment, Hongta Securities, Hongyun Private Fund, Hua’an Fund, Huabao Securities, Huachuang Securities, Hufu Securities, Huatai Securities, Huatai Securities, Beijing Shengxi Investment, HSBC Qianhai Securities, Huihua Fund, JiaShi Fund, Whale Domain Asset, Invesco Great Wall Fund, Gushan (Shanghai) Asset, Kaiyuan Securities, Kunlun Health Insurance, Luoyang Venture Investment, Nanjing Kimberley Asset, Beijing Zeming Investment, Nanjing Shengquan Hengyuan Investment, Ningbo Liansheng Investment, Qingli Investment, Ruishengyuan (Shanghai) Private Fund, Shanxi Securities, Shanghai Baixi Private Fund, Shanghai Biaopu Investment, Shanghai Orient Securities Assets, Shanghai Fengyang Asset, Shanghai International Trust, Beijing Zhongjun Investment, Shanghai Hesong Investment, Shanghai Hedao Asset, Shanghai Heou Investment, Shanghai Jiashi Private Fund, Shanghai Jinen Investment, Shanghai Liuhe Zhichian Private Fund, Shanghai Mingyu Asset, Shanghai Qiuyang Yuliang Investment, Shanghai Ruisheng Private Fund, Shanghai Senjin Investment, Boshi Fund, Shanghai Shunling Asset, Shanghai Siyuan Investment, Shanghai Xiaoyong Private Fund, Shanghai Yashang Equity Investment, Shanghai Yichang Asset, Shanghai Yimu Asset, Shanghai Winshi Investment, Shanghai Zhipu Asset, Shanghai Zhongyang Investment, Shenwan Hongyuan Securities, Caida Securities, Shenzhen Huili Asset, Shenzhen Maoyuan Wealth, Shenzhen Qianhai Baide Na Capital, Shenzhen Qianjin Hao Private Securities Fund, Shenzhen Qianjin Hao Private Securities Fund, Shenzhen Shingaofang Private Securities Fund, Shenzhen Maisheng Asset, Shenzhen Shangcheng Asset, Shenzhen Zexinyi De Investment, Shenzhen Zhongtian Huifu Fund, Suzhou Zhengyuan Xinyi Asset participated.

The specific content is as follows:

I. Company’s 2025 Work Review

2025 was a year where challenges and opportunities intertwined. The external environment was complex and changeable, and the industry’s cyclical fluctuations were prominent. At the same time, demand in the defense sector showed a phase of slowdown. Meanwhile, prices of precious metals and bulk materials such as gold, copper, and silver continued to rise, putting considerable pressure on the company’s profitability. In the face of a complex and severe situation, the company adhered to the overall work tone of “pursuing growth, improving capabilities, and creating first-class quality,” focused on its primary responsibilities and main businesses, continuously strengthened core capabilities, deeply planned the company’s business operations and development, cultivated new growth drivers, pushed harder into the era of new quality productivity, and throughout the year cumulatively achieved operating revenue of 21.386 billion yuan, up 3.39% year over year; achieved total profit of 2.691 billion yuan, and delivered an impressive set of results that were hard won.

In terms of the company’s business, it has always adhered to strategic leadership, focused on connecting the main business. While deepening the defense sector and continuously consolidating its position as a preferred supplier, the company also actively and deeply laid out the high-end civilian manufacturing sector, forming a business pattern of diversified drivers and coordinated development. This lays a solid foundation for high-quality development. Specifically: In the defense sector, the company continuously consolidated its preferred supplier position, empowering new-domain and new-quality equipment such as aerospace and space-related platforms with EWIS core technologies, breaking traditional supporting barriers, and achieving comprehensive improvement from connectors to integrated interconnects. Adhering to the “solution + speed + cost” strategy, the company proactively positioned itself in emerging areas such as unmanned systems, deep-water, and satellite-rocket fields, and its comprehensive competitiveness has steadily improved.

In the new energy vehicle sector, the company focused on its core customers of “international first-class and domestic mainstream,” and continued to deepen its efforts in three major areas: on-board power, charging and swapping, and intelligent networking and connectivity. It built a product matrix covering end-to-end scenarios across the three areas to meet diversified connectivity needs of new energy vehicles, and successfully ranked among leading domestic new energy vehicle connector product providers. Throughout the year, the company achieved project designations for more than 400 projects, received “excellent supplier” honors from multiple leading automakers, and delivered rapid year-on-year growth in business scale.

In the communications network sector, the company built a full-scenario product matrix covering wireless base stations, transmission, and access. Relying on self-developed technologies such as fiber-optic transmission and electro-optical conversion, and combining precision-manufactured power connectors, low-frequency signal interfaces, and high-speed backplane connectors, the company can provide customers with integrated end-to-end solutions for optical, electrical, and high-speed applications.

In the data center and computing power sector, the company relies on independently developed capabilities to form an overall solution covering “power supply + fiber optics + high-speed + liquid cooling” products. At present, the company’s data center business has been deeply integrated into the supply chains of high-efficiency computing infrastructure for leading customers at home and abroad, and it has formed notable first-mover advantages in core tracks such as liquid-cooling heat dissipation. It has formed a complete product matrix including power-related products, optical transmission devices and modules/components, high-speed connectors and modules/components, and liquid-cooling heat dissipation systems. The business broadly covers upstream chip and hard drive manufacturers and power equipment manufacturers, midstream server manufacturers and IT equipment vendors, and downstream terminal users including internet companies, telecom operators, government-enterprise and finance organizations. The company has established deep cooperation with leading internet enterprises, telecom operators, and equipment vendors in the industry, and products such as high-speed cable assemblies and cold plate components for structured cabling have achieved large-scale applications with global leading customers. In industrial and high-end manufacturing fields, it has continued to expand into scenarios such as data centers, supercomputing, energy storage, and wind power. During the reporting period, the data center business scale achieved rapid year-on-year growth.

In the industrial and medical sectors, the company is focused on building a “2 major + 2 strong + 2 new” business development pattern. Centering on leading customers, it focuses on connectors and modules/components, providing customers with high-quality, low-cost products and services. Relying on deep technical accumulation, in sub-sectors such as photovoltaic energy storage, petroleum equipment, marine engineering, industrial equipment, engineering and special machinery, medical equipment, and power equipment, it provides interconnect solutions across end-to-end scenarios and tailored to each customer. In terms of market value management, the company actively implements the relevant requirements of the China Securities Regulatory Commission, the Shenzhen Stock Exchange, and the State-owned Assets Supervision and Administration Commission regarding market value management. It formulated market value management systems and corresponding implementation rules, forming a relatively complete market value management framework. From the perspective of shareholder returns, in fiscal year 2024 the dividend payout ratio reached 50.52%, the highest level since the company’s listing. This year, the company again proposed a cash dividend plan of 1.153 billion yuan; together with the already implemented 150 million yuan share buyback, the company’s expected cash dividend payout ratio for 2025 is 60.28%, with the dividend yield remaining among the top in the industry. From the perspective of investor communication, last year the company took advantage of regular performance briefing sessions and on-demand investor exchange meetings to carry out various activities including in-person communications and securities firm strategy meetings through multiple measures. It conducted extensive communication with investors and received high recognition from the capital market and a broad base of investors.

2026 is the opening year of the “15th Five-Year Plan” period and also a key year for the company to embark on a new journey to build world-class enterprises. The company will firmly center on “stable growth,” closely follow the three main lines of “enhancing capabilities, strengthening management, and improving quality and efficiency,” focus on high-quality development, and strive to achieve a strong start for the “15th Five-Year Plan” period. Q: Investors ask:

Answer: II. Investor Q&A

Q: (1) What considerations does the company have in formulating its development strategy for the next five years?

A: Overall, the company will continue to focus on its interconnect main business, centering on the R&D of mid-to-high-end optical, electrical, and fluid connection technologies and products, and provide interconnect solutions for aviation and defense as well as high-end manufacturing.

In specific business areas, in the defense sector the company will enhance its integrated defense capabilities, based on the “two highs and one low with sustainability” approach, and proactively build specialized capability for low-cost interconnect solutions covering multiple scenarios; its business scale will achieve stable growth. In the civilian high-end manufacturing sector, the company will focus on subdivided tracks, emphasizing resource allocation and capability building, and conduct business around core key customers and large-volume products.

Q: (2) What are the main reasons for the decline in the company’s R&D expenses in 2025?

A: The main reason for the decline in R&D expenses is that equity incentive unlocking performance did not meet the targets, leading to charge-offs of pre-expenses. Among the incentivized personnel, most are R&D personnel, so R&D expenses were charged more. After excluding the impact of equity incentive amortization, R&D expenses increased year over year.

The company adheres to market-driven and research-driven approaches. The ratio of R&D investment to sales revenue is basically above 10% every year. The company’s R&D investment mainly targets three aspects: market demand and customer projects, basic research and pre-research, and major business expansion and new business incubation projects. Going forward, the company will also continue to pay attention to the efficiency of R&D investment and improve the contribution of R&D expenses to the company’s operating results.

Q: (3) How does the company achieve continuously optimized cost control?

A: First, it insists on technological innovation and further implements cost control in areas such as product design and material selection. Second, it continues to break down business units into smaller units, strengthens responsibility-based performance evaluation, and increases the intensity of digital and intelligent transformation so that it can identify key cost improvement points more precisely through more accurate accounting, thereby improving cost competitiveness. Third, it deeply implements strategic cost management, establishes business profit models and a target price economic efficiency management platform, and firmly advances the “cost leadership” strategy.

Q: (4) What caused the company’s overall gross margin to decline in 2025?

A: During the reporting period, the defense segment was affected by industry cycle fluctuations. Demand was not strong, combined with the requirements of “two highs and one low with sustainability,” leading to a relatively large year-on-year decline in defense sector revenue. Meanwhile, precious metals and bulk materials such as gold, copper, and silver continued to rise in price, affecting the company’s profitability level.

Q: (5) What plans does the company have for global expansion?

A: The company is firmly committed to its international expansion development strategy. Relying on its subsidiaries in Vietnam and Germany, its international business is accelerating the transition from exporting products to exporting production capacity. Its international delivery and service capabilities are continuously improving. In addition, the company has established a rapid response mechanism that meets customer needs. When facing customer needs, it upholds the “efficiency” principle first, keeps communication channels and service assurance systems open and efficient, and sets up branches in key international regions and countries. Through a top-level plan of “global integrated layout, business integration into regions, and the best comprehensive cost-performance value,” it will continuously push forward internationalization and achieve efficient localized services across the globe.

Q: (6) What are the reasons for the significant increase in inventory in 2025? Which business areas does it mainly include?

A: In 2025, although defense business revenue decreased year over year, orders increased year over year. Since there is a cycle between product delivery and revenue recognition, some order revenues will be recorded later, resulting in a corresponding increase in inventory. Currently, the inventory structure mainly includes products related to the defense business and the new energy vehicle business.

Q: (7) How does the company expect its performance in 2026?

A: According to the company’s already disclosed 2026 annual financial budget report, it is expected to achieve operating revenue of 22.8 billion yuan and total profit of 3.0 billion yuan throughout the year, representing year-on-year increases of 6.61% and 11.49%, respectively.

Q: (8) How has the organization structure of the company’s liquid cooling business unit been adjusted?

A: Based on the continued explosive demand in the data center and I-computing market, at the beginning of 2026 the company adjusted its liquid cooling business unit. The new liquid cooling business unit is responsible for the entire value-chain stages of liquid cooling R&D, procurement, production, market, and so on for the civilian products business, further strengthening its first-mover advantage in liquid cooling heat dissipation-related products. The former defense liquid cooling business was split and established the environmental control products department.

Q: (9) Does the company have any market value management or shareholding increase plan?

A: The company has formulated a market value management system and corresponding implementation rules. If it has any shareholding increase plan in the future, it will strictly fulfill its information disclosure obligations in a timely manner in accordance with relevant laws and regulations.

Q: (10) Is the company’s current capacity planning sufficient, and can it support the “15th Five-Year Plan” revenue target?

A: In terms of industrial layout, in recent years the company’s projects such as the South China industrial base, the fundamental components industrial park, the liquid cooling industrial base, the civil aircraft and industrial interconnect industrial park, and the high-end interconnect science and technology industrial community have been completed and put into operation one after another. At present, the overall industrial space layout has been basically complete. In terms of capacity schedule, the company’s equipment and capability building is advancing steadily according to its annual fixed-asset investment plan, and it dynamically adjusts along with market demand. Overall, there is not much pressure for achieving the capacity planning targets for the “15th Five-Year Plan” period.

AVIC Optoelectronics (002179) main business: R&D of mid-to-high-end optical, electrical, and fluid connection technologies and products; specializing in providing interconnect solutions for aviation and defense as well as high-end manufacturing.

AVIC Optoelectronics’ 2025 annual report shows that in that year, the company’s main operating revenue was 21.386 billion yuan, up 3.39% year over year; net profit attributable to the parent company was 2.162 billion yuan, down 35.56% year over year; profit excluding non-recurring items was 2.103 billion yuan, down 35.84% year over year. Among them, in the fourth quarter of 2025, the company’s single-quarter main operating revenue was 5.548 billion yuan, down 15.81% year over year; single-quarter net profit attributable to the parent company was 425 million yuan, down 49.51% year over year; single-quarter profit excluding non-recurring items was 402 million yuan, down 51.31% year over year; the asset-liability ratio was 38.54%, investment income was 80.0426 million yuan, financial expenses were -37.0318 million yuan, and gross margin was 29.19%.

In the latest 90 days, a total of 4 institutions have issued ratings for this stock: 3 rated it as Buy and 1 as Increase Holdings; over the past 90 days, institutions’ target price average was 45.0.

The following are the detailed earnings forecast information:

Margin financing and securities lending data shows that over the past 3 months, this stock had net financing inflows of 538 million yuan, and the financing balance increased; net securities lending outflows were 451,500 yuan, and the securities lending balance decreased.

The above content is compiled by Securities Star from publicly available information and generated by an AI algorithm (filing No. 310104345710301240019); it does not constitute investment advice.