Proportion of Overseas Business Exceeds 30% for the First Time
Net Profit Reaches 710 Million Yuan, Up 30% YoY
WUHAN, China, March 31, 2022 /PRNewswire/ -- Yangtze Optical Fibre and Cable Joint Stock Limited Company (hereinafter referred to as "YOFC" or "the Company") has recently announced its consolidated results for 2021 (the "Reporting Period"). During the reporting period, operating revenue reached 9,536 million yuan, an increase of 16.0% from 2020. Net profit attributable to shareholders of the parent company stood at 710 million yuan, up 30.3% YoY.
During the reporting period, YOFC continued to optimize production efficiency and cost structure, expanded the application scenarios of new products, and consolidated its leadership in the global optical Fibre and cable markets. A point of success in terms of technological innovation defined by achieving full autonomy across the whole of the optical Fibre value chain, the Company strengthened the R&D of new optical Fibres, resulting in it being the first worldwide to roll out dispersion-flat Fibre for 5G forward transmission. In another first, the Company's large-effective-area Fibres with ultra-low attenuation as well as its proprietary multi-core and low-mode Fibre lead globally. Furthermore, the Company's high-end multi-mode optical Fibre is being widely used in the construction of large-scale data centers at home and abroad.
While ensuring the core advantages of the main business, YOFC has continuously accelerated the pace of diversification and achieved breakthroughs in many fields. The Company has further enhanced its portfolios for optical modules/optical devices, communication network engineering, data center wiring as well as active optical cables for consumer electronics applications, while achieving new growth in optical modules, semiconductor quartz materials and submarine communications cables. The company has further leveraged its advantages in optical modules and optical devices, to avail itself of project opportunities in the data center and communication markets, with this segment demonstrating a new jump in revenue during the reporting period.
In 2021, YOFC rolled out a roadmap focused on further differentiation of products and services to enhance international competitiveness and establish a wider presence across existing and new markets. An examination of product demand and potential profitability in several target markets, most notably in Southeast Asia, Africa and Latin America, became the basis of a plan to expand production capacity accordingly, resulting in the rapid growth of overseas business revenue. During the year, the company achieved the first milestone of the new roadmap, when business revenue ex-China reaching 310 million yuan, up 46.8% YoY and accounted for more than 30% of annual revenue for the first time. Two significant projects that contributed to reaching the milestone were communication network facilities in the Philippines and in Peru, where, in both cases, the teams in charge proved themselves capable of overcoming challenges presented by the COVID-19 pandemic and completed their construction targets on schedule. These two successes were recognized by local operators, leading to the garnering of follow-up project orders. In June 2021, the Company completed the acquisition of YOFC Poliron Indústria e Comércio de Cabos Especiais Ltda. (Poliron) in Brazil, establishing its first production facility in the region. In addition, in view of actual demand across Southeast Asia, Africa and Latin America, the Company expanded its optical Fibre and cable production capacity in Indonesia as well as its optical Fibre production capacity in Poland.
Looking forward into 2022, a year marked by both opportunities and challenges, YOFC expects to consolidate the worldwide leadership position of its main business by leveraging a need to rebalance supply and demand across the industry and to continue implementing key strategic initiatives. The Company is also planning the next stage of the globalization of operations by further enhancing the overseas production capacity portfolio, as well as reinforce overseas teams through hiring local talents, so that needs of customers can be better met by conversing with them in their native languages.
