CIG Shanghai Co., Ltd. provided earnings guidance for the period from January 1, 2025 to December 31, 2025. It is estimated that the Company will realise a net profit attributable to the owners of the Company of RMB 252 million to RMB 278 million from January 1, 2025 to December 31, 2025, representing an increase of RMB 85.3188 million to RMB 111.3188 million, or an increase of 51.19% to 66.79% compared with the same period last year. It is estimated that the net profit attributable to the owners of the Company after deducting non-recurring gains and losses for the Year 2025 will be RMB 249 million to RMB 275 million, representing an increase of RMB 97.7457 million to RMB 123.7457 million, or an increase of 64.62% to 81.81% compared with the same period last year.
The operating results continued to grow during the Period, with the direct driver remaining the coordinated development of the Company?s three core businesses ? high-speed optical modules, broadband access and wireless access. Among them, the high-speed optical module business recorded significant year-on-year growth in both order scale and shipment volume, benefiting from robust market demand driven by the rapid development of artificial intelligence and the accelerated construction of global data centers, and the Company?s sustained capacity layout through the commissioning of the new manufacturing base in Jiashan, the ramp-up of capacity at the manufacturing base in Malaysia and planned capacity expansion across domestic and overseas bases; meanwhile, the Company continued to advance product technology iteration and structural optimisation, with a significant rise in the proportion of high-speed and high-margin products, which further improved the overall gross profit margin; leveraging stable customer relationships and strong product competitiveness, the broadband access and wireless access businesses maintained steady growth in shipment volume and shipment value, providing solid support for the Company?s performance.
Over the past several years, the Company?s sustained investment in production capacity and the upstream supply chain has formed the core foundation for the growth in operating results during the Period. Following nearly two years of construction, the new manufacturing base in Jiashan commenced operations in mid-2025, and rapidly reached full utilisation of the designed production capacity; at the same time, the facility on Jiangyue Road in Shanghai completed the relocation of the production capacity, assets and personnel and was closed by the end of 2025. These ongoing adjustments and expansions of production capacity were aligned with market demand, and provided solid production capacity assurance for the Company to capture the current growth opportunities driven by large-scale AI models and data center development.
Anticipating supply chain tension arising from the upstream transmission of demand growth, the Company has consistently increased investment in upstream supply chain production capacity through a combination of prepayments, strategic inventory stockpiling, capital expenditures and equity investments, thereby securing material supply and upstream production capacity at an early stage, and effectively mitigating the impact of supply chain volatility on the operations. The above measures provided positive support for the Company?s operating results during the Period, and will continue to enhance the Company?s future delivery capacity; however, the tension in the supply of core components and other key materials persists, with localized risks of further escalation and deterioration, and fluctuations are subject to a degree of unpredictability. The Company has continued to optimize the research and development layout, including expanding the R&D centers in Shanghai, Wuhan, Xi?an and Taipei, significantly increasing investment in its North American R&D center, optimizing and restructuring the R&D team in Japan, and has newly established an R&D center in Hsinchu.
The research and development investment is primarily focused on high-speed optical modules, core technologies for wireless access and the development of key components. By strengthening the research and development efforts, the Company aims to drive new product development and technological breakthroughs, thereby accumulating core competitive capabilities to support future technology iteration. Through intensified sales efforts and the continued expansion of market breadth and depth, the Company?s increase in sales and marketing investment during the Period will lay a foundation for further business growth in the future.
During the Period, the Company recorded increases in research and development expenses, selling expenses and administrative expenses to certain extents, primarily attributable to the expansion of business scale, increased research and development investment and the deepening of market deployment, which is aligned with the Company?s strategic development plan.
