Junzhi Group (01300) is profitable, and the expected medium-term profit of about RMB 208.4 million will increase by about 735.3% year over year

Zhitong Finance App News, Junzhi Group (01300) issued an announcement. The Company expects the Group to obtain profit of approximately RMB 208.4 million for the six months ended June 30, 2026 (first half of 2026), an increase of approximately RMB 225 million compared with the unaudited profit of approximately RMB 25 million for the six months ended June 30, 2025 (first half of 2025). The increase in the Group's profit was mainly affected by the following factors:

(1) As of the first half of 2026, the Group achieved unaudited revenue of approximately RMB 1,750.5 billion, compared with the unaudited revenue of approximately RMB 1,235.6 billion in the first half of 2025, an increase of 41.7%; the unaudited revenue for the half year ended 31 December 2025 (the second half of 2025) was approximately RMB 1,402.9 billion, an increase of 24.8% over the previous year;

(2) According to the latest management accounts, the Group achieved unaudited gross profit of approximately RMB 266.4 million in the first half of 2026, compared with the unaudited gross profit of approximately RMB 139.7 million in the first half of 2025, an increase of 90.7%; the unaudited gross profit obtained in the second half of 2025 was approximately RMB 142.5 million, an increase of 87.0% over the previous year; and

(3) Other factors contributing to the increase in profit include the expected credit loss return in the first half of 2026, an increase in other income, an increase in other income, a decrease in administrative expenses, and a reduction in financing costs. Increased tax expenses, sales and distribution costs, and R&D costs offset part of the increase in profit.

The company continues to develop in the high-end telecommunications manufacturing industry, enhance R&D capabilities and recruit talents. In terms of the company's business in 2026, benefiting from the rapid growth of the global intelligent computing center (AIDC) industry, the company continued to optimize its customer and order structure. The main products (power cables, signal cables and optical cables) were gradually recognized by customers in the AIDC field, and revenue and gross profit increased at an accelerated pace. While stabilizing the domestic market, it actively expanded overseas markets. The company will also make every effort to develop the fiber optic cable business layout, further consolidate and enhance market competitiveness by improving the industrial chain layout, consolidating the business foundation, concentrating superior resources, and deepening the core circuit of the industry.