Ningbo Orient Wires & Cables (603606) H1 2025 earnings summary

Executive summary

• Revenue for the first half of 2025 reached ¥4.43 billion, up 8.95% year-over-year, with net profit attributable to shareholders at ¥472.96 million, down 26.57% year-over-year due to product mix changes and absence of prior year one-off gains.

• Cash flow from operating activities increased 48.51% year-over-year to ¥714 million, supported by higher collections.

• Order backlog as of August 12, 2025, stood at approximately ¥19.6 billion, providing strong visibility for future growth.

• The company continued to expand in power engineering, offshore wind, and deep-sea technology, with significant project wins and strategic investments in new subsidiaries and joint ventures.

Financial highlights

• Operating income: ¥4.43 billion, up 8.95% year-over-year; net profit: ¥472.96 million, down 26.57% year-over-year.

• Gross margin declined due to a higher proportion of lower-margin power engineering cables and reduced value-add in subsea cables.

• Cash flow from operations: ¥714 million, up 48.51% year-over-year.

• Total assets: ¥13.92 billion, up 14.31% from year-end 2024; net assets: ¥7.14 billion, up 4%.

• Basic and diluted EPS: ¥0.69, down 26.60% year-over-year.

Outlook and guidance

• Management expects continued strong order delivery in the second half of 2025 and into 2026, with robust project execution and high capacity utilization.

• The company is positioned to benefit from national energy transition policies, offshore wind expansion, and deep-sea technology initiatives.

• Ample order backlog and ongoing strategic investments are expected to support stable growth.