Everprox Technologies Co.,Ltd. delivered exceptional performance in the first half of 2025, with revenue surging nearly 60% year-over-year and net profit attributable to shareholders skyrocketing over 11-fold. This outstanding growth was primarily driven by explosive demand from AI-powered data centers, while traditional telecom markets experienced notable contraction.
**Key Financial Highlights:**
Financial Performance: - Operating revenue reached 12.00 billion yuan, representing a 59.54% year-over-year increase - Net profit attributable to parent company soared to 168 million yuan, marking an extraordinary 1,121.21% surge - Gross margin substantially improved to 40.19%, up 18.07 percentage points from the previous year - Net cash flow from operations reached 2.97 billion yuan, growing 256.76% year-over-year, demonstrating significantly enhanced cash generation - R&D investment maintained at 56.18 million yuan, accounting for 4.68% of total revenue
Core Business Development: - Data communication business experienced explosive growth: revenue from data communication, consumer, and industrial internet markets totaled 9.76 billion yuan, surging 154.37% year-over-year, with market share rising to 81.36% - Telecom business faced pressure: telecom market revenue declined to 2.21 billion yuan, down 39.66% year-over-year, with share falling to 18.46% - Overseas revenue reached 7.37 billion yuan, representing 61.43% of total revenue, further enhancing international market presence
**Data Communication Business Emerges as Growth Engine with Significant Business Structure Optimization**
During the first half of 2025, Everprox Technologies achieved remarkable business transformation. The company's operating revenue reached 12 billion yuan, representing a substantial 59.54% year-over-year growth, primarily driven by the data communication, consumer, and industrial internet market segments. This business division generated revenue of 9.76 billion yuan, experiencing explosive growth of 154.37%, with its revenue contribution dramatically increasing from 51.02% in the same period last year to 81.36%.
In contrast, the traditional telecom market business faced dual pressures from industry cycles and price competition, with revenue dropping to 2.21 billion yuan, down 39.66% year-over-year, and its share declining to 18.46%.
This structural shift reflects the company's successful capture of market opportunities arising from artificial intelligence development, data center computing power enhancement, and network iteration upgrades, with the product portfolio increasingly focused on high-growth sectors.
Profitability showed remarkable improvement. The company achieved net profit attributable to shareholders of 168 million yuan, surging 1,121.21% year-over-year, with net margin rising to 14.02%. The data communication business achieved a gross margin of 45.65%, up 10.40 percentage points from the previous year, while the telecom business gross margin also recovered to 15.94%, increasing 8.21 percentage points. This demonstrates the company's effective enhancement of profitability through product structure adjustment and cost control amid intense competition.
**Acquisition Integration Strengthens Control, Production Capacity Expansion Progresses Steadily**
Regarding equity acquisitions, the company completed the purchase of an 18.16% stake in Changxin Sheng for approximately 391 million yuan, increasing its shareholding from 42.29% to 60.45%. This acquisition utilized funds originally designated for the silicon photonics module technical transformation project, reflecting the company's flexible resource allocation strategy. As an important vehicle for the company's data communication business, enhanced control over Changxin Sheng benefits business integration and synergistic development.
In terms of production capacity construction, the Chengdu Rongbo Communication Park officially commenced operations in June, with this fundraising project successfully completed. Meanwhile, the Indonesia Phase III production base project is progressing as planned, establishing a global layout comprising four major production bases in Chengdu, Jiaxing, Hanchuan, and Indonesia. The establishment of cross-regional resource integration and production capacity complementarity mechanisms effectively enhanced domestic and international product delivery capabilities.
Notably, R&D investment remained stable, with research and development expenditure of 56.18 million yuan during the reporting period, accounting for 4.68% of revenue. The company continues investing in cutting-edge products including PON optical module iteration upgrades, 1.6T AEC, and 400G silicon photonics technology modules, laying the foundation for future competitiveness.
**Cash Flow Significantly Improves, but Market Competition Risks Require Attention**
Regarding financial quality, the company's net cash flow from operating activities reached 297 million yuan, surging 256.76% year-over-year, demonstrating robust cash generation capabilities. Monetary funds totaled 604 million yuan, providing ample financial support for business development.
However, investors should remain mindful of potential risks: first, continued slowdown in telecom markets may drag overall performance; second, intensifying competition in data communication markets poses downward pressure on product prices; third, with overseas revenue accounting for 61.43% of total revenue, exchange rate fluctuations and trade policy changes may introduce uncertainties.
Future focus areas include: commercial progress of silicon photonics technology products, synergistic effects from the four major production bases, whether data communication business can maintain high growth momentum, and when telecom business will bottom out and recover. The company is at a critical juncture of business structure transformation, with the sustainable growth capacity of the data communication business serving as the core indicator for assessing its long-term value.
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