On the evening of March 28, 2016, Yangtze Optical Fiber & Cable Co., Ltd. (stock code: 6869. HK, hereinafter referred to as "YOFC") released its 2015 annual performance announcement, delivering an exciting report after its first year on the stock exchange.
As a world leading supplier of optical fiber preforms, optical fibers and optical cables, YOFC’s income created new highs last year: The group’s 2015 total revenue was 6.7311 billion RMB, representing a growth rate of 18.6%; gross margins were 1.3042 billion RMB, for a growth rate of 19.9%; earnings before interest and tax (EBIT) grew remarkably from 581.9 million RMB in 2014 to 756.9 million RMB in 2015, for a growth rate of over 30%; and net profit attributable to the parent company was 570.7 million RMB, for a growth rate of over 20%. In its first year as a listed company, YOFC demonstrated its value to the capital market with its tangible excellent performance.
Profiting from the promotion of a series of national strategies like “Broadband China” in recent years, the continued extension of 4G network construction by the three domestic telecom operator giants, the anti-dumping of imports of optical fiber preforms and the recent short supply of optical fibers, the demand for optical fibers and optical cables continued to rise in 2015. Beginning from the final quarter of 2015, the average selling price of optical fiber preforms and optical fibers increased, helping to further improve YOFC’s growth in performance.
Faced with such market opportunities, in its first year on the stock exchange, YOFC made its positive deployment and construction by using the capital power and closely focused on its strategic target of “being NO.1 in the world and the industry leader”, with its four strategic layout of “comprehensive industry chain, multi-operational paths, internationalization and related diversification” and other influences on the industry:
Comprehensive industrial chain: Upstream Yunjingfei* goes into full commission, Feiling* begins construction; downstream establishes YOFC Connectivity*, generic cabling business production value enjoys large growth.
*Yunjingfei: Wuhan Yunjingfei Optical Fiber Material Co., Ltd., primarily produces the raw material ZeCl4 for optical fiber preforms.
Feiling: Hubei Feiling Optical Fiber Material Co., Ltd., produces the raw material SiC14 for optical fiber preforms.
YOFC Connectivity: Shenzhen YOFC Connectivity Technologies Co., Ltd. primarily produces and sells generic cabling products and related system integration, project design and consultation services.
Multi-operational paths: YOFC and the Netherlands’ Philips embarked on a joint venture to introduce PCVD technology. Through assimilation, digestion and re-innovation of the technology, the company now has a comprehensive command of PCVD. On this basis, YOFC was able to independently do research on and develop VAD commissioning which heightened its cost advantages. Moreover, it strengthened cooperation with Japan’s Shin-Etsu, introduced Shin-Etsu’s OVD technology, and changed the whole structure of the global optical fiber preform industry.
Internationalization: With the help of the national strategy of “One Belt And One Road”, the company actively implemented its domestic and foreign industrial distribution. In China, the commissioning of YOFC’s science and technology park makes it the largest single capacity optical cable factory in the world; When YOFC’s science and technology park in Qianjiang is finished, it will become the largest single capacity preform production base in the world; Within one year, the company established optical fiber and optical cable factories in Lanzhou, Tieling and Hangzhou, completing its capacity layout in areas like central and North East Asia. Internationally, the optical cable plant in Myanmar radiates into South East Asia and increases optical cable capacity to 2 million kilometers of fiber core; the optical fiber plant in Indonesia is the only optical fiber plant in the country and increases optical fiber capacity to 3 million kilometers of fiber core; the company’s subsidiary in South Africa will become the most influential optical cable supplier in Africa. Overseas sales offices have increased to 22, and strive to provide the fastest and most efficient response to customers. The power of International business teams has substantially strengthened, embodied by an annual increase rate of more than 10% consecutively in International business income.
Related diversification: The “FIBBR” brand released by EverPro* is the first full series of optical fiber HDMI products to be released in the world; the company established its Special Products Business Division, which reinforces R&D and sales of the company’s special product; the stock acquisition of NK Wuhan* was completed and the company set foot into the feeder optical cable business.
*EverPro: EverPro (Wuhan) Technologies Co., Ltd., primarily produces and sells active optical cables and other consumer electronics.
NK: NK Wuhan Cable Co., Ltd., primarily produces and sells electric cable products.
Industry Influence Construction:
① Smart manufacturing: The Company actively responded to the “Made in China 2015” initiative by investing in smart manufacturing. YOFC was listed as the first batch of 46 intelligent manufacturing pilot demonstration enterprises by the Ministry of Industry and Information Technology. It is the only enterprise in the optical fiber and optical cable industry and the only enterprise in Hubei to be included in the batch, which boosted the Company’s confidence and impetus in the intelligent manufacturing industry.
② Initiating self-regulated product quality in the industry: With the support of the industry association, YOFC was the first company in the optical fiber and optical cable industry to initiate and sign the Optical Fiber and Optical Cable Industry Quality Self-regulation Treaty, which is beneficial for enterprises to ensure the product’s quality, to strengthen the industry’s foundations, and to create a high-end Chinese optical fiber and optical cable brand so as to improve China’s voice in the global optical fiber and optical cable industry in the current market competition environment.
③ Brand influence: YOFC successfully held the first CRU Asia-Pacific Optical Fiber and Optical Cable Conference and was highly recognized by the industry; the Company won many awards, and was evaluated as the “global benchmark for quality” by the Ministry of Industry and Information Technology, it was also awarded the “Yangtze Quality Award” by the Hubei Provincial Government and the management and quality awards by the USA’s WORLDCOB. It has remained at the front of the industry; the Company was awarded “the best Corporate Citizen Comprehensive Award" by 21cbh, becoming the first enterprise in the industry to win this award; the company was listed in “The Top 10 Most Competitive Enterprises in the Chinese Optical Fiber and Optical Cable Industry” (ranked first) for 9 years consecutively, and "The Top 10 Most Competitive Enterprises in the Global Optical Fiber and Optical Cable Industry" (ranked second) by the NT-Research Institute.
2015 was a year of historical significance for YOFC’s development. On December 10, 2014, YOFC was successfully floated on the Stock Exchange of Hong Kong as the largest global supplier of optical fiber preforms and the second largest global supplier of optical fibers and optical cables, becoming the only Sino-foreign joint venture to do so. A year after floating on the stock exchange, YOFC released an exciting report to its investors: The company’s performance is rapidly and steadily growing, with many financial indicators reaching new peaks in recent years; with the already-set strategic goals, the Company initially established the four large strategic layouts, becoming the largest global supplier of optical fiber preforms and optical fibers and the second largest global supplier of optical cables. As a result, YOFC is now just a small step away from becoming the “NO.1 in the world”. YOFC’s measures and achievements of initiating product quality self-regulation in the optical fiber and optical cable industry, being included in the Ministry of Industry and Information Technology’s first batch of 46 intelligent manufacturing pilot demonstration enterprises and successfully holding the first series of the CRU Asia-Pacific Optical Fiber and Optical Cable Conference all further highlighted its influence on the industry. It is clear that with the vitality that becoming a listed company instills in the Company and adherence to the attitude and spirit of welcoming new challenges, YOFC has already set off towards the path of moving onto the world arena and “begining a new undertaking” with its new targets of innovation and excellence.
Looking forward to the future, YOFC will closely focus on the above strategic goals and layout, gain a firm grasp on the “One Belt One Road” Initiative, “Made in China 2025”, “Broadband China”, “Internet Plus” and other opportunities that arise with similar national strategies to strengthen its core competitiveness, cement its position at the front of the industry and continue its outstanding business performance to provide stockholders with good earnings.
|
.jpg)
