Cambridge Technology reported a significantly improved profit for the first quarter of 2026, driven by increased volume and prices in its high-speed optical module business, although rapid expansion also led to cash flow pressures.
Shanghai Cambridge Technology Co., Ltd. disclosed its first-quarter report for 2026 on Monday, showing revenue of 1.287 billion yuan, a year-on-year increase of 43.98%. Net profit attributable to shareholders of the listed company reached 118 million yuan, surging 276.44% compared to the same period last year, indicating a notable enhancement in profitability. The company attributed the performance growth primarily to the continued expansion of shipments of its core business products.
However, net cash flow from operating activities during the reporting period was -219 million yuan, widening from -142 million yuan in the same period last year. The company explained that this was mainly due to increased procurement expenditures resulting from ongoing business expansion and the strategic buildup of key material inventories. Cambridge Tech stated it will strengthen accounts receivable management and overall cash flow planning, and is accelerating the expansion of production capacity both domestically and internationally to address international trade challenges and sustained delivery pressures.
Following the earnings release, Cambridge Tech's H-share price saw a late-session rally, currently up over 8%, after having fallen more than 5% earlier in the day.
**Optical Modules Drive Substantial Revenue Growth, Reaching a New Scale**
During the reporting period, Cambridge Tech achieved revenue of 1.287 billion yuan, a 43.98% increase from 894 million yuan in the same period last year. The expansion of the high-speed optical module business was the core driver of this growth.
On the cost side, total operating costs were 1.219 billion yuan, up 40.93% year-on-year. Of this, operating costs amounted to 909 million yuan, an increase of 27.51%. The growth rate of costs was lower than that of revenue, indicating some economies of scale. R&D expenses reached 100 million yuan, rising 29.47% year-on-year, continuing the trend of high investment in research and development.
A significant change was noted in financial expenses, which amounted to 125 million yuan this period compared to a net income of -2.27 million yuan in the same period last year, representing a substantial increase likely related to the company's financing scale and foreign exchange fluctuations.
**Significant Release of Net Profit Leverage; Adjusted Net Profit Rises Nearly 286%**
Boosted by the substantial revenue growth, the company's profitability accelerated markedly. Total profit reached 97.23 million yuan, an increase of 225.21% year-on-year. Net profit attributable to shareholders of the listed company was 118 million yuan, soaring 276.44%.
After excluding non-recurring gains and losses, the adjusted net profit attributable to shareholders was 117 million yuan, up 285.90% year-on-year. This indicates high-quality earnings, with the core business constituting the main part of the profit. Total non-recurring gains and losses were approximately 1.4 million yuan, primarily stemming from government subsidies of 1.44 million yuan, with an overall limited impact.
Basic earnings per share improved from 0.12 yuan in the same period last year to 0.34 yuan, an increase of 183.33%. The weighted average return on equity was 1.58%, up 0.23 percentage points from the same period last year.
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