YOFC announces its 2021 annual results
The proportion of companies abroad exceeds 30% for the first time
The net profit reached 710 million yuanup 30% year-on-year
Wuhan, China, March 31, 2022 /PRNewswire/ — Yangtze Optical Fiber and Cable Joint Stock Company Limited (hereinafter referred to as “YOFC” or “the Company”) recently announced its consolidated results for 2021 (the “Reporting Period”). During the period under review, operating income reached 9,536 million yuanup 16.0% compared to 2020. Net income attributable to shareholders of the parent company amounted to 710 million yuanup 30.3% year-on-year.
During the reporting period, YOFC continued to optimize production efficiency and cost structure, broaden the application scenarios of new products, and consolidate its leadership in the global fiber optic and cable markets. Point of success in terms of technological innovation defined by complete autonomy over the entire fiber optic value chain, the Company has strengthened the R&D of new optical fibers, which has earned it the position of being the first in the world to deploy Dispersive Flat Fiber for 5G forward transmission. In another first, the company’s high-effective-area fibers with ultra-low attenuation as well as its proprietary multi-core, low-mode fiber are leading globally. In addition, the company’s high-end multimode optical fiber is widely used in the construction of large-scale data centers at home and abroad.
While securing the main advantages of the core business, YOFC has continuously accelerated the pace of diversification and made breakthroughs in many fields. The Company further enhanced its portfolios of optical modules/devices, communications network engineering, data center cabling as well as active optical cables for consumer electronics applications, while achieving new growth in optical modules , quartz semiconductor materials and underwater communication cables. The company continued to leverage its advantages in optical modules and optical devices to seize project opportunities in the data center and communications markets, with this segment showing further revenue growth during the reporting period. .
In 2021, YOFC rolled out a roadmap focused on further product and service differentiation to improve international competitiveness and establish a broader presence in existing and new markets. A review of product demand and potential profitability in several target markets, including South East Asia, Africa and Latin America, has become the basis of a production capacity expansion plan accordingly, resulting in rapid growth of overseas business revenue. During the year, the company passed the first stage of the new roadmap, when the turnover ex-China to reach 310 million yuan, up 46.8% year-on-year and accounted for more than 30% of annual revenue for the first time. Two important projects that contributed to this milestone were the communications network installations in The Philippines and in Peru, where, in both cases, the teams in charge proved capable of overcoming the challenges posed by the COVID-19 pandemic and achieved their construction objectives on schedule. Both of these successes were recognized by local operators, resulting in follow-on project orders. In June 2021, the Company finalized the acquisition of YOFC Poliron Indústria e Comércio de Cabos Especiais Ltda. (Polyron) in Brazil, establishing its first production plant in the region. Furthermore, given the actual demand across South East Asia, Africa and Latin Americathe Company has expanded its fiber optic and cable production capacity by Indonesia as well as its fiber optic production capacity in Poland.
Looking ahead to 2022, a year marked by both opportunities and challenges, YOFC plans to consolidate the global leadership position of its core business by capitalizing on the need to rebalance supply and demand in the industry and continue to implement key strategic initiatives. The Company also plans the next step in the globalization of operations by further improving the portfolio of overseas production capabilities, as well as strengthening overseas teams by hiring local talent, so that customer needs can be more satisfied by conversing with them in their mother tongue. .