CCTC (Chaozhou Three-Circle (Group) Co., Ltd.) reported strong interim results for the six months ended 30 June 2026, buoyed by rising demand for multilayer ceramic chip capacitors (MLCC) and optical-communication components.
Financial Highlights • Revenue climbed 54.82% year-on-year to RMB 6.42 billion, driven by higher MLCC volumes and optical-device sales. • Operating profit gained 56.05% to RMB 2.23 billion; net profit attributable to shareholders advanced 56.18% to RMB 1.93 billion. • Gross profit margin on core electronic and telecom components improved 2.52 ppts to 44.23%. • Net cash from operating activities increased 15.04% to RMB 1.30 billion, while net cash from investing activities fell 76.69% to RMB 0.32 billion after lower proceeds from investment recovery. • Cash and cash equivalents stood at RMB 3.08 billion, up from RMB 2.29 billion at end-2025. • Total assets expanded to RMB 28.44 billion; the gearing ratio edged up to 20.36% from 18.27% six months earlier.
Capital Markets Activity • CCTC completed a Hong Kong Main Board listing on 9 July 2026, issuing 80.22 million H shares (including partial over-allotment) and raising net proceeds of approximately HKD 7.93 billion for overseas expansion, automation, R&D and working capital. • As of 30 June 2026, the company held 5.13 million A shares in treasury following completion of a RMB 175.42 million buyback. A separate RMB 894.66 million repurchase programme for up to 8.55 million A shares was finalized on 30 July 2026; another buyback of up to RMB 1 billion is under way.
Operational Update • MLCC sales benefited from recovering industry pricing and stronger customer demand, particularly in servers and automotive electronics. • Optical-communication components, including ferrules and sleeves, saw higher volumes amid global data-centre expansion. • R&D spending rose 16.28% to RMB 0.34 billion, supporting product innovation in high-capacitance MLCCs, pan-semiconductor ceramics and bioceramics. • CCTC continued to build overseas capacity and R&D institutes, and is incorporating AI-driven materials research.
Balance-Sheet and Liquidity • Current assets reached RMB 14.71 billion; current ratio stood at 3.3x. • Short-term borrowings totalled RMB 0.74 billion, all in fixed-rate RMB. • The board affirmed that existing cash and bank facilities provide sufficient liquidity; no hedging instruments were in place as foreign-currency exposure remained limited.
Governance and Corporate Actions • The board was re-elected in August; Li Gang became Chairman and Ma Yanhong Vice Chairman and General Manager. • New employee stock-ownership plan for A-share staff approved in September 2026. • Articles of Association were amended to reflect the enlarged share capital to 1.997 billion shares after the H-share issue.
Dividend • The board does not propose an interim dividend for 1H 2026.
Outlook Management targets further MLCC capacity expansion, accelerated overseas growth and continued investment in advanced ceramic materials to capture opportunities in AI, data-centre, automotive and new-energy markets.
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