News & Events

As we leave 2024 behind and step into 2025, let's reflect on the passage of time and embrace the new opportunities ahead.

I would like to express, on behalf of YOFC, our deep appreciation and best wishes for the coming year to all our valued customers and supporters. Your ongoing support has been crucial to our growth. To our dedicated staff, thank you for your hard work and commitment throughout the past year. I also extend my deepest respect and warmest regards to the families who have supported us behind the scenes.

In 2024, YOFC proudly celebrated its 36th anniversary and marked a decade since we began our global expansion. This year, we were thrilled to welcome many new friends from around the globe into the YOFC family. The mix of different nationalities, cultures, and backgrounds has reflected our commitment to creating a diverse and inclusive environment.

In 2024, despite the dual challenges of global economic volatility and ongoing changes within the communications industry, we demonstrated remarkable strategic strength and resilience while achieving progress across the board. We reached key milestones in several areas: overall business growth, internationalization, diversification, innovation and digital transformation, and capital optimization.

Maintaining Global Leadership in the Telecom Market with Innovative Digital Communication Products. As the digital economy thrives, new demands in terms of the computing power network, artificial intelligence (AI), and advanced data management, are driving the broader adoption of high-capacity, long-distance, and low-latency optical transmission technologies. YOFC has maintained its position as a global leader in the optical fibre preform, optical fibre, and cable sectors. In the data communication market, we have introduced advanced multimode optical fibres, including the OM4 Pro/Ultra series. These products offer data centers more efficient transmission options, underscoring our competitive edge.

Optimizing International Production Capacity to Drive Sustained Growth in Overseas Revenue. As we celebrate the 10th anniversary of YOFC’s international expansion in 2024, we are proud to reflect on the remarkable progress. During this time, our international revenue increased more than tenfold, with overseas business accounting for over 30% of our total revenue for three consecutive years. We have made continuous progress with major international operators, and our overseas workforce now represents over 20% of our total employees. In February, we made our debut at MWC Barcelona. In April, we acquired RFS Germany and RFS Suzhou, and in August, we celebrated the official opening of Yangtze Optics Mexico Cable in Jalisco, Mexico. Our factories in Poland, Indonesia, and South Africa have expanded production capacity, further optimizing our global production portfolio. To date, YOFC has established eight production facilities in six countries, with international communication projects in Peru, Indonesia, and beyond. These efforts are forging a new chapter in our international expansion strategy.

Implementing Diversification Strategy to Ensure Continuous Optimization of the Business Structure. YOFC's business portfolio has shown impressive growth, with revenue from all operations making up 40% of the total in the first half of 2024. We have been continuously refining our business mix, achieving significant strides across all segments.

In the realm of specialty products, our traditional offerings maintain market leadership while the communication segment has grown despite broader challenges. We have achieved significant breakthroughs in the technology supporting our specialty optical fibre sensing systems, resulting in an impressive jump in revenue for the segment. Furthermore, we have expanded into new areas such as underwater applications and oil wells.

In the field of industrial lasers, our subsidiary, Everfoton Technologies Corporation Limited, has seen continued growth in both laser shipments and sales revenue. The industrial laser intelligent manufacturing facility is making significant progress, with the first phase now officially in operation.

YOFC has been advancing the integration and synergy of its optical components and optical transceivers businesses. Our subsidiary, Broadex Technologies, has seen rapid growth in data communication, consumer electronics, and industrial interconnection. Additionally, we have established the Integrated Circuit Research Institute to leverage our strengths in core chip design and development. The initiative is a key part of our transition from traditional to smart manufacturing.

In the domain of submarine cables and ocean engineering, we have acquired a 30% stake in Baosheng Submarine Cable. The acquisition allows us to enhance the synergistic effect between submarine cable manufacturing, laying, and ocean engineering construction.

Advancing Next-Generation Optical Fibre Communication Technology through Technological Innovation and Digital Transformation. Hollow-core fibre, a disruptive technology for next-generation optical communication, has the potential to surpass the latency, attenuation, and capacity limitations of solid-core fibre. With advanced hollow-core fibre manufacturing processes, YOFC has been actively collaborating with domestic and international operators to undertake testing initiatives. We have formed several world-leading test networks for hollow-core fibre transmission technology, laying a solid foundation for the industrialization of hollow-core fibre. Regarding G.654.E fibre, since the beginning of 2024, YOFC has led globally in the supply of G.654.E fibre, with continuous advancements in our technical capabilities. Working with several partners, we have successfully completed test projects that set new records for ultra-high-speed and ultra-long-distance optical transmission. These efforts have established a solid experimental foundation for the seamless evolution of metropolitan area networks.

Through the comprehensive integration and application of cutting-edge technologies such as AI, 5G, and virtual manufacturing, YOFC has significantly accelerated its journey towards intelligent manufacturing and digital transformation. In 2024, YOFC’s smart manufacturing achievements were recognized by prestigious awards and honors, underscoring YOFC’s leadership in the manufacturing sector.

Focusing on the Value Chain and Diversified Strategy to Build a Robust Industry Ecosystem Through Investment Funds. We have participated in the establishment of three investment funds: Hubei Yangtze YOFC Laser Intelligent Manufacturing Investment Fund Partnership (Limited Partnership), Wuhan YOFC Sci-Tech Industrial Fund Partnership (Limited Partnership), and Hubei YOFC Angel Investment Fund Partnership (Limited Partnership). With assets under management totaling 3 billion yuan, these funds were designed to construct an industrial ecosystem and foster the synergistic development of the industrial chain.

With all the changes not only in the world economy but within our sector, we find ourselves at a crossroad of opportunities and challenges. In this complex and volatile environment, how will the YOFC team navigate challenges and seize the opportunities for progress?

In the New Year, we remain steadfast in our commitment to the five development strategies, aiming to achieve sustainable growth through the following initiatives:
 

Focusing on Value Creation for Steady Growth: Our optical fibre and cable business will capitalize on its strengths in cost efficiency, technology, and processes to reinforce its position as a global leader. We will continue to enhance our lean management, harness untapped potential, and maximize resource utilization. By adopting a customer-centric approach, each business segment will deliver efficient responses, prompt service, and comprehensive, high-quality products, solutions, and support services. Our goal is to consistently create and deliver unparalleled value for our customers.

Committing to Technological Innovation as a Catalyst for Quality Growth: We plan to increase investment in R&D and focus on cutting-edge technology, using the State Key Laboratory of Optical Fibre and Cable Manufacture Technology as the core of our R&D platform. In line with our focus on active commercialization, strategic reserves, and forward-looking research, we will continue to advance the development of innovative optical fibre technology. Furthermore, we will enhance collaboration among industry, academia, research, and application development, pooling global resources and leveraging diverse strengths. By establishing close partnerships with key players in the industry chain, we aim to advance the large-scale production of next-generation optical fibres, particularly hollow-core fibre. We are committed to setting a new standard for next-generation optical communication technology, providing a robust impetus for the sustainable development of the global digital economy.

Implementing Our International Strategy and Energizing Overseas Markets: By deeply engaging in international markets, we aim to hasten market expansion in key countries and regions, by expanding and deepening our collaborations with key customers. Enhancing the delivery and management capabilities of our international production facilities will lead to greater operational efficiency. We stay alert to changes in the external business environment, ensuring a thorough understanding industrial policies and market demands in each country and region where we operate and market our products. The goal is to establish a robust risk management system and provide safe, trustworthy, and resilient products and services to our customers around the world.

Building on Our Diversification Strategy and Driving Growth in Emerging Businesses: We are ramping up investment in various operations, and implementing a differentiated competitive strategy to rapidly develop flagship businesses with significant market shares. By enhancing mechanisms for information and resource sharing across all business segments, we seek to establish several effective cooperation models and foster global synergies among our various divisions. We will also pursue strategic partnerships with overseas platforms and leverage the abundant resources and extensive channels available in international markets.

According to a report released by the International Telecommunication Union in November 2024, about one-third of the world’s population still lacks access to the internet. Guided by our mission of “Smart Link Better Life,” YOFC has been dedicated to extending fibre connectivity to every corner of the globe, bridging the digital divide, and ensuring that everyone can enjoy the enhanced quality of life that optical fibre technology brings.

With resolute determination and boundless enthusiasm, we embark on our journey into 2025, undeterred by any distance or limitation. Let us seize the momentum to achieve new accomplishments, foster an environment where innovation thrives, and create a future that is uniquely ours.

Wishing you all a happy and prosperous New Year!

ZHUANG Dan

Executive Director and President

Yangtze Optical Fibre and Cable Joint Stock Limited Company