Suzhou TFC Optical Communication (300394) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 reached RMB 944.63 million, up 29.11% year-over-year.

• Net profit attributable to shareholders was RMB 337.63 million, a 21.07% increase year-over-year.

• Operating cash flow surged 115.12% to RMB 293.61 million compared to the same quarter last year.

• Adjusted net profit (excluding non-recurring items) was RMB 332.25 million, up 23.39% year-over-year.

• The report was not audited.

Financial highlights

• Basic EPS was RMB 0.6095, up 20.84% year-over-year; diluted EPS was RMB 0.6078.

• Gross margin improved as revenue growth outpaced cost increases.

• Total assets at quarter-end were RMB 5.21 billion, up 9.99% from year-end 2024.

• Shareholders' equity rose 8.97% to RMB 4.34 billion from year-end 2024.

• Non-recurring gains totaled RMB 5.38 million, mainly from government subsidies and investment income.

Outlook and guidance

• Inventory increased 55.49% due to higher raw material stocking, indicating expectations of continued sales growth.

• Contract liabilities rose 9.04%, reflecting a healthy order pipeline.