Hengtong Optic-Electric's net profit increased by 93.38% year-on-year in the first half of the year; Zhang Jianping became a new top five shareholder | Financial Report Insights

Hengtong Optic-Electric's significant performance increase confirms the continued strong demand for optical fiber cables and related businesses.

According to the company's announcement, the net profit attributable to shareholders of the listed company in the first half of 2026 reached 3.12 billion yuan, an increase of 93.38% year-on-year , nearly doubling; the operating revenue was 42.026 billion yuan, an increase of 31.13% year-on-year.

Net profit excluding non-recurring gains and losses increased by 100.62% year-on-year, exceeding 100%, indicating that core business rather than one-off gains were the main drivers of this performance growth. In addition, basic earnings per share rose from RMB 0.66 in the same period of the previous year to RMB 1.29, an increase of 95.45%, and the weighted average return on net assets increased by 3.96 percentage points year-on-year to 9.43%.

While the company's performance was booming, well-known investor Zhang Jianping became the company's fifth largest shareholder in the second quarter, holding 1.40% of the shares, which attracted much attention from the market.

Revenue and profit both jumped significantly

According to the summary of Hengtong Optic-Electric's 2026 semi-annual report, the company's operating revenue was RMB 42.026 billion during the reporting period, an increase of 31.13% compared with RMB 32.049 billion in the same period of the previous year; total profit was RMB 3.585 billion, an increase of 92.87% year-on-year; and net profit attributable to shareholders of the listed company was RMB 3.12 billion, an increase of 93.38% year-on-year.

It is worth noting that the net profit after deducting non-recurring gains and losses was RMB 3.151 billion, a year-on-year increase of 100.62%, slightly higher than the growth rate before deduction. This means that the company's performance growth relies more on the substantial improvement of its main business, rather than on asset disposal or other non-recurring items.

As of the end of the reporting period, the company's total assets were RMB 77.883 billion, an increase of 7.63% compared with the end of the previous year; net assets attributable to shareholders of the listed company were RMB 33.707 billion, an increase of 6.06% compared with the end of the previous year.

Despite the impressive profitability indicators, the company's net cash flow from operating activities was -865 million yuan during the reporting period, compared to 4.91 million yuan in the same period of the previous year, turning from positive to negative and on a significant scale.

Zhang Jianping becomes the fifth largest shareholder.

Regarding the shareholder structure, according to the semi-annual report, well-known investor Zhang Jianping became the company's fifth largest shareholder in the second quarter, holding 34.4161 million shares, accounting for 1.40% of the total share capital.

As of the end of the reporting period, the company had a total of 590,607 shareholders. The controlling shareholder, Hengtong Group Co., Ltd., held 24.07% of the shares, comprising 594 million shares, of which 369 million shares were pledged. The company's actual controller, Cui Genliang, held 3.86% of the shares and acted in concert with Hengtong Group and Cui Wei. The remaining positions among the top ten shareholders were held by Hong Kong Securities Clearing Company Limited, several index funds, and mixed funds.

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