Net profit for the six-month period ending June 30 climbed 18% to RMB 7.84 billion. The company’s gross margin expanded by 17 basis points to 11.78%, a gain attributed to a more diversified revenue mix and increased operating efficiency. While consumer electronics remain the largest contributor with RMB 122.48 billion in revenue, the communications, data center, and automotive sectors delivered the most aggressive growth. Automotive electronics revenue soared 274.1% to RMB 32.39 billion, bolstered by the successful integration of Leoni and new mass-production programs for smart chassis and high-speed connectors.
Strategic investment remains a focal point for the company, which directed RMB 6.57 billion into research and development—a 43.1% increase over the previous year. These funds supported engineering for AI-enabled devices and next-generation connectivity, including the mass production of 800G optical products and 1.6T interconnects. Chairwoman Wang Laichun emphasized that the company is prioritizing disciplined capital allocation as it scales its global footprint across 29 countries. Despite facing RMB 1.99 billion in currency-related losses, the company’s operating cash flow turned positive in the second quarter, reaching RMB 4.62 billion, underscoring a recovery in liquidity as seasonal supplier payments normalized.
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