Stock Track | CIG Plummets 5.71% in Intraday Trading on Cash Flow Concerns Despite Strong Q1 Profit

Stock Track09:32

CIG (stock code: 06166) plummeted 5.71% in intraday trading on Tuesday, following a surge in the prior session after its Q1 earnings release.

The decline comes despite the company reporting strong Q1 financial results, with revenue rising 43.98% year-over-year to RMB 1.287 billion and net profit surging 276.44% to RMB 118 million, driven by expansion in its high-speed optical transceiver module business.

However, investors reacted negatively to operating cash flow turning sharply negative at RMB -219 million due to increased payments for business expansion and strategic material stockpiling. Additionally, rising R&D expenses and foreign exchange losses pressured margins, offsetting the profit growth.

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