Key takeaway

In 2025, the company recorded net profit attributable to shareholders of the parent company of RMB59mn, YoY +119%. In 1Q26, net profit attributable to shareholders of the parent company reached RMB97mn, YoY +110%, QoQ +189%. The company achieved major breakthroughs in both AI and battery fields. In AI, in 2025 the company reached annual production and sales capacity of 300 tons of optical fiber preforms and 10 million core-km of optical fiber, and has achieved large-scale mass production of G.657A1/A2 optical fiber. In batteries, the company secured cylindrical cell orders exceeding RMB251mn, YoY +80.93%. High-capacity cells recorded revenue growth of +190.64% YoY and turned profitable. Meanwhile, it secured energy storage orders exceeding RMB2.162bn, YoY +57.26%, and implemented multiple large-scale commercial and industrial energy storage and standalone energy storage power station projects in both domestic and overseas markets.

Event

The company released its 2025 annual report and 1Q26 report.

In 2025, the company recorded revenue of RMB28.108bn, YoY +7.7%. Net profit attributable to shareholders of the parent company was RMB59mn, YoY +119%. Net profit after non-recurring items was RMB41mn, YoY +111%.

Among them, in 4Q25 revenue was RMB7.898bn, YoY +0.3%, QoQ +9%. Net profit attributable to shareholders of the parent company was -RMB109mn, YoY +50%, QoQ -550%. Net profit after non-recurring items was -RMB82mn, YoY +69%, QoQ -1142%.

In 1Q26 revenue was RMB5.325bn, YoY +9%, QoQ -33%. Net profit attributable to shareholders of the parent company was RMB97mn, YoY +110%, QoQ +189%. Net profit after non-recurring items was RMB93mn, YoY +177%, QoQ +214%.

Quick Take

AI emerging businesses: Dual focus on liquid cooling and optical fiber drives rapid revenue growth.

In the computing power AI field, the company continues to deepen cooperation with globally leading artificial intelligence chip companies in high-speed interconnection, liquid cooling solutions, and next-generation computing chip testing equipment.Focusing on breakthroughs in “bionic manifold microchannel + interface composite materials” technology, it is accelerating liquid cooling product cooperation with leading chip companies at home and abroad. The company has participated in the construction of more than 50 computing and data center projects, including the Baozhiyun North China Base project and the Volcano Engine Yangtze River Delta computing center, as well as projects in the Hainan commercial aerospace launch site and emerging sectors such as computing AI and commercial aerospace.

In the AI all-optical interconnection field, by 2025 the company will achieve annual production and sales capacity of 300 tons of optical fiber preforms and 10mn fiber-km of optical fiber, and has realized large-scale mass production of G.657A1/A2 optical fiber, mainly used in fields such as AIDC. After the capacity expansion, the company is expected to achieve production and sales capacity of 2,000 tons of optical fiber preforms and corresponding optical fiber/hollow-core fiber, and will continue advancing the full industry chain presence of “optical fiber preform–optical fiber–optical cable.” In 1Q26, related operating revenue increased by 140.81% YoY, and net profit increased by 211.56% YoY.

In the robotics field, the company has deepened cooperation with leading industry enterprises such as UBTECH ROBOTICS, AGIBOT, Unitree Robotics, and COWAROBOT. Among them, UBTECH ROBOTICS has achieved batch deliveries, with its business share continuing to increase; AGIBOT has completed sample verification and is steadily advancing batch supply; the company has successfully entered the Amphenol supply chain and is actively expanding into domestic and overseas markets. Intelligent cable network business: Performance improved steadily in 2025, with net profit margin recovering QoQ in Q1.

In 2025, the company’s intelligent cable network busine ss recorded operating revenue of RMB23.903bn, up 5.28% YoY, and net profit of RMB288mn, up 9.47% YoY, corresponding to a net profit margin of 1.2%. The value of contract orders above RMB10mn reached RMB22.015 bn, up 12.86% YoY. In 1Q26, the company’s intelligent cable network business recorded operating revenue of RMB4.415bn, up 5.33% YoY, and net profit of RMB116mn, down 12.23% YoY, corresponding to a net profit margin of 2.6%. Profitability recovered QoQ, and the company secured orders above RMB10mn totaling RMB3.931bn during the period.

The company participated in the construction of the Chifeng Ar Horqin Banner North 500kV power transmission and transformation project, the Yebatan Hydropower Station with the world’s highest-altitude double-curvature arch dam, the Terra Solar PV project in the Philippines, one of the largest of its kind in Southeast Asia, the Baozhiyun North China Base project, the Hainan Commercial Space Launch Site, as well as emerging areas such as computing-power AI and commercial aerospace, continuing to demonstrate its integrated service capabilities. Intelligent battery business: Losses continued to narrow in 2025, with breakthroughs in both energy storage and cylindrical battery cells.

In 2025, the company’s intelligent battery business recorded operating revenue of RMB1.987bn, up 20.10% YoY, and net profit of -RMB346mn, with losses reduced by RMB345mn YoY. Contract orders above RMB10mn reached RMB3.456bn, up 37.86% YoY. In 1Q26, the company’s intelligent battery energy storage/computing power AI business recorded operating revenue of RMB558mn, up 61.93% YoY, and net profit of -RMB42mn, with losses reduced by RMB76mn YoY. Orders above RMB10mn reached RMB1.723bn, up 221.94% YoY.

Energy storage: In 2025, the company secured energy storage orders exceeding RMB10mn totaling RMB2.162bn, up 57.26% YoY. Multiple large-scale commercial and industrial energy storage and standalone energy storage power station projects were implemented in China and overseas. Among them, the 800MWh energy storage project in Wuqiang, Hebei set the world’s fastest commercial operation record for a string-type energy storage power station of the same class. The company’s first overseas large-scale storage project was launched in Latvia. Market share of residential energy storage increased significantly in Poland, the Netherlands, Italy, and other regions.

Batteries: The company’s cylindrical battery cells secured orders exceeding RMB10mn totaling RMB251mn, up 80.93% YoY. High-capacity battery cells recorded revenue growth of 190.64% YoY and turned losses into profits.

Foil materials:The company continues to expand the market for 4.5μm, 5μm, and high-strength high-ductility copper foil products. Revenue from new products increased by 472.30% YoY. Processing fees in the copper foil industry are currently in a recovery phase, and the company’s profitability will benefit from rising processi ng fees. Meanwhile, the company is accelerating the industrialization of high-end products such as HVLP high-speed PCB copper foil, nickel-plated copper foil for solid-state batteries, and solid-state batteries.

Smart airport business: Overall volume and profitability remained stable, with multiple overseas airport projects won.

In 2025, the company’s smart airport business generated revenue of RMB2.113bn, up 27.36% YoY, and net profit of RMB113mn, down 8.30% YoY. Contract orders exceeding RMB10mn reached RMB2.667bn, up 3.38% YoY. The winning bid for the Pontevedra International Airport project set a new record for the company’s largest single-project contract value, and expansion in domestic and overseas markets achieved notable results.

In 1Q26, the company’s smart airport business generated revenue of RMB341mn, up 9.4% YoY, and net profit of RMB24mn, down 11.38% YoY. The company successively won bids for key projects including the civil aviation professional engineering project at Nicaragua Airport, the electromechanical installation project at Xieng Khouang Airport in Laos, the lighting upgrade project at Shanghai Hongqiao Airport, and the equipment renovation project at Fuzhou Airport, securing orders exceeding RMB10mn totaling RMB130mn. Currently, 81 airport projects are under construction, with progress advancing smoothly.

Net profit attributable to shareholders of the parent company is expected for 2026–2028, corresponding to PE of 57.4x, 42.5x, and 30.1x

Risks

1) Downstream demand falls short of expectations: Sales volume may fall short due to weak demand. Production volume may also fall short due to factors such as significant fluctuations in upstream raw material prices, thereby affecting the company’s shipment volume and profitability in related businesses.

2) Raw material price increases exceed expectations: Raw material prices may fluctuate sharply in certain periods. Price instability has some impact on end demand. At the same time, it disturbs the company's short-term performance.

3) Slower-than-expected progress of the company's key projects: For the company as a participant in the new energy sector, the progress of major projects is the key to supporting the revenue and profi ts, and is also a reflection of the company's growth potential. The slower-than-expected progress of major projects will affect its current and long-term performance.