Nanjing Quanxin Cable Technology Co Ltd

Quanxin Co. released its 2026 interim report on August 26. During the reporting period, the company achieved operating revenue of 425 million yuan, down 4.44% year on year, but net profit attributable to the parent company was 26 million yuan, up 18.87% year on year, and net profit attributable to the parent company after deducting non-recurring items was 24 million yuan, up 8.03% year on year. Relying on core businesses such as optoelectronic cables and components and optoelectronic system integration in the military electronics information field, the company saw a slight decline in revenue due to a reduction in military product sales scale and downward pressure on some product prices. However, optimization of the product delivery mix and lower material costs drove an increase in gross margin, enabling net profit to grow against the trend. Among these, the high-performance transmission cables and components segment achieved revenue of 302 million yuan, accounting for about 71% of the total, down 7.62% year on year, with gross margin edging up 0.54 percentage points to 30.62%. The optoelectronic systems and FC products segment achieved revenue of 118 million yuan, up 3.02% year on year, with gross margin surging 12.37 percentage points to 62.46%, becoming a key engine of profit growth. It is worth noting that operating cash flow turned from positive to negative, with a net amount of negative 8 million yuan, a sharp reversal from 263 million yuan in the same period last year. Accounts receivable reached 988 million yuan, and its proportion of total assets rose to 40.44%, indicating emerging pressure on capital turnover. Looking ahead, the company is expected to benefit from steady growth in defense spending and the trends of equipment intelligence and domestic substitution, but attention should be paid to the recovery of military orders, collection progress, and the ability to scale up high-margin businesses.