Yangtze Optical Fibre and Cable Joint Stock Limited Company (stock code: 6869.HK, hereinafter referred to as “YOFC”) successfully held the 2016 Annual Performance Press Conference in Hong Kong on March 27, 2017 and announced the performance reports of YOFC as well as its affiliated companies by December 31, 2016 to the investors. At the conference, Zhuang Dan, executive director and president of YOFC, Jan Bongaerts, the vice president and Liang Guanning, the chief financial officer, introduced such contents as the development strategy and future prospect of YOFC, the industrial profile and market forecasting as well as the financial and operation status of YOFC in a comprehensive and detailed manner, and answered the questions asked by present investors in a simple but profound manner, making the atmosphere of the conference hall warm.

As the globally largest supplier for optical fibre preform, optical fibre and cable, YOFC has continued to consolidate its business strength in optical fibre preform, optical fibre and cable so as to hold the lead on the domestic telecommunication market in 2016, and at the same time, it has also deepened the implementation of internationalization strategies, constantly expanded the overseas market, continued to extend towards the upstream and downstream of the industrial chain, actively developed diversified services, vigorously promoted the new products as well as expanded the range of customers and market space, thus making the revenue of YOFC hit a new record high. According to the data in the year-end performance announcement of 2016, by December 31, 2016, the total revenue of YOFC has reached up to 8.1 billion yuan with a year-on-year growth rate of 20.4%, its total gross profit has reached up to 1.675 billion yuan with a gross profit rate of 20.7%, and the net profit of affiliated shareholders has reached up to 0.7 billion yuan with a year-on-year growth rate of 22.9%. Board of directors of YOFC suggests distributing the final dividendat 0.255 yuan per share. The demand for optical fibre and cable has been greatly increased thanks to the vigorous promotion of 4G network infrastructure construction by China’s three telecommunications operators in 2016 as well as the continuous implementation of such national strategies as “Broadband China” and “Internet +”. The revenue of optical fibre and optical fibre preform segment, major businesses of YOFC, has reached up to 4.07 billion yuan with a year-on-year growth rate of 8.4%, accounting for 50.3% of the total revenue, while the revenue of optical cable segment has reached up to 3.58 billion yuan with a year-on-year growth rate of 35.5%, accounting for 44.2% of the total revenue.

In 2016, considerable progress YOFC has made inits businesses on the market of telecommunications operators both at home and abroad proves also to be one of the main sources of power to promote its revenue growth.Based on the regional division, a total revenue of 7.39 billion yuan comes from Chinese customers with an increase of 19.3% compared with 2015, while a total revenue of 0.703 billion yuan comes from overseas customers with an increase of 32.7% compared with 2015, and the primary driving factor is the sales growth of optical cable and cable.

In 2016, apart from impressive financial performance, YOFC has alsomaderemarkable achievements andgainedrecognition. The “Independent Preform and Optical Fibre Industrialization Intelligent Manufacturing Project” of YOFC has been approved by the Ministry of Industry and Information Technology of China and Ministry of Finance as the intelligent manufacturing integrated standardization and new model application project. “YOFC Intelligent Manufacturing” has won a wide range of social concerns and recognition, and it has also been reported successively in “CCTV News”, “Half-Hour Economy” and on the front page of People's Daily. YOFC is fulfilling and guiding from “Made in Hanyang” to “Optical Valley Dream”. Meanwhile, as the only representative in the industry, YOFC has successively won the bidding of the Ministry of Industry and Information Technology such as “Single Champion Demonstration Enterprise” of the single champion of the manufacturing industry (the first batch) as well as the project of “Industrial Strong Base Engineering”, which has manifested the comprehensive strength and position in industry of YOFC. At the end of 2016, YOFC successfully held CRU Global Optical Fibre and Cable Conference, one of the three grand conferences in the industry, and has won the ICQCC International Quality Management Gold Award in three consecutive years. It has also won many quality awards both at home and abroad including the nomination of China’s Quality Award and the International Star of Quality Leadership, making the brand influence of YOFC further improved.

Faced with the excellent situation that the group revenue hits a new record high, Zhuang Dan, executive director and president of YOFC says on the press conference that in the future, YOFC will closely center on the development strategy of “being No.1 in the world and the leader of the industry”, promote the connotative growth of preform, optical fibre and cable businesses; deepen the implementation of internationalization; optimize technological innovation and intelligent manufacturing, set up the platform for research and development, make innovations in the product research and development system and launch more products and solutions with market potential and competitive advantages; actively explore diversified development, seek new access opportunities to such fields as special products, services, materials and applications; promote capital operation so as to facilitate the rapid development of YOFC, to promote the sustainable growth of group revenue and profit and to create more value for shareholders and customers.