Company Announcement 28 August 2025Announcement No. 22 NKT has received a “Request Before the Issuing of a Decision” from the Antimonopoly Office of the Slovak Republic NKT A/S (NKT) confirms that its Czech subsidiary, NKT s.r.o. has received a “Request Before the Issuing of a Decision” (Request) from the Antimonopoly Office of the Slovak Republic, relating to an ongoing investigation into alleged anti-competitive practices in the Slovak cable market.In the Request, the Antimonopoly Office alleges that cert ...

Core Viewpoint - The hybrid servo motor cable market is projected to grow from $100.95 million in 2024 to $170.15 million by 2031, with a CAGR of 7.70% from 2026 to 2031 [1][4]. Market Overview - The global hybrid servo motor cable market is dominated by major manufacturers such as Lynxeo (Former Nexans Part), LAPP Group, Igus, SAB Bröckskes, and Phoenix Contact, which collectively hold approximately 52% of the market share [4]. - The primary product type is PUR sheathed cables, accounting for about 46.1% of the market [6]. - The main demand source is industrial automation, which represents approximately 69.3% of the market [7]. Industry Trends - **Integration Trend**: The shift towards integrated wiring solutions combining power, feedback, and control signals is gaining traction due to the increasing complexity of traditional wiring methods. This integration simplifies installation and reduces cable usage, particularly in compact or frequently moving equipment like robotic arms and CNC machining centers [11]. - **Performance Indicators**: High flexibility and durability are becoming core performance indicators for hybrid servo cables. Manufacturers are adopting advanced materials to enhance cable longevity and adaptability to dynamic environments [12]. - **Customization Demand**: The diversification of application needs across various industries is driving the demand for customized cable solutions, leading manufacturers to offer tailored services and collaborate with OEMs [13]. - **Standardization and Global Integration**: The push for standardization in cable design is essential for meeting the requirements of international OEMs and system integrators, facilitating easier maintenance and reducing global delivery costs [14]. Current Status - Integrated wiring has become an industry standard, significantly improving space efficiency and installation time in industrial automation [15]. - Hybrid servo cables are widely used in dynamic industrial applications, particularly in sectors like automotive, packaging, semiconductor manufacturing, and material handling [16]. - The use of advanced materials such as tinned copper conductors and PUR sheathing is ensuring compliance with international safety and environmental standards [17]. Future Directions - The future of hybrid cables is leaning towards smart cable integration, potentially incorporating built-in sensors for predictive maintenance, which will be crucial in Industry 4.0 environments [18]. - The trend towards cross-brand standardization and modularity is evident, with manufacturers developing new products that integrate multiple functions into a single durable and flexible cable [19][20].

Group 1 - The China Securities Regulatory Commission (CSRC) has issued supplementary material requirements for 17 companies, including Wolong Nuclear Materials, regarding their overseas listing applications [1] - Wolong Nuclear Materials submitted its listing application to the Hong Kong Stock Exchange on June 16, 2025, with CITIC Construction Investment International and China Merchants Securities International as joint sponsors [1] - The CSRC has requested Wolong Nuclear Materials to clarify the specific use of raised funds and compliance with foreign investment policies [1] Group 2 - Wolong Nuclear Materials is a leading provider of high-speed data communication and alternative energy power transmission solutions, specializing in the manufacturing and sales of high-speed copper cables [1] - The company's high-speed copper cables have been certified for use in computation servers by several leading global AI companies, ensuring stable and high-quality signal transmission between different GPUs [2] - According to Frost & Sullivan, the company is the second largest high-speed copper cable manufacturer globally and the largest in China, with a global market share of 24.9% based on 2024 revenue [2]

Core Insights - Nexans clarifies that all cables manufactured for the Great Sea Interconnector project have been fully paid for, eliminating financial exposure in case of project adjustments [1] - The demand for Nexans' high-voltage direct current (HVDC) cable solutions is strong across various global projects, allowing for the potential redeployment of manufacturing capacity to other initiatives [2] Company Overview - Nexans is a global leader in sustainable electrification, focusing on systems that support the transition to a connected, resilient, and low-carbon future [3] - The company has over 140 years of history and operates through three core businesses: PWR Transmission, PWR Grid, and PWR Connect, emphasizing innovation and industry expertise [4] - Nexans operates in 41 countries with a workforce of 28,500 and reported €7.1 billion in standard sales for 2024, with a commitment to achieving Net-Zero emissions by 2050 [5]

Core Points - Nexans announces the departure of Jean-Christophe Juillard as Deputy Chief Executive Officer and Chief Financial Officer, with a search for a successor already initiated [1][4] - Juillard's contributions have significantly improved Nexans' profitability, strengthened its financial structure, and accelerated the implementation of its sustainable value creation strategy [2] - CEO Christopher Guérin expressed gratitude for Juillard's commitment and essential contributions to the transformation of Nexans [3] Company Overview - Nexans has been a key player in the electrification of the planet for over a century, employing approximately 28,500 people across 41 countries [5] - In 2024, Nexans generated €7.1 billion in standard sales and is recognized as a leader in cable systems and services across four main business areas: PWR-Transmission, PWR-Grid, PWR-Connect, and Industry & Solutions [5] - The company is committed to sustainable initiatives, aiming for Net-Zero emissions by 2050, and was the first in its industry to create a Foundation supporting such initiatives [5]

Core Insights - Nexans reported a strong performance in H1 2025, achieving +4.9% organic growth, driven primarily by its Electrification businesses which grew by +7.8% organically [1][5][6] - The company achieved record adjusted EBITDA of €441 million, reflecting a +7.0% increase year-on-year, with an adjusted EBITDA margin of 11.7% [3][8][11] - Nexans successfully completed the divestment of Lynxeo and made a strategic acquisition of Cables RCT, enhancing its position in sustainable electrification [3][4][18] - The company upgraded its full-year 2025 guidance for adjusted EBITDA to between €810 million and €860 million, and free cash flow to between €275 million and €375 million [1][42] Financial Performance - H1 2025 standard sales reached €3.8 billion, with organic growth of +4.9% compared to H1 2024 [3][4] - Net income for H1 2025 was €374 million, significantly up from €176 million in H1 2024, largely due to net gains from asset disposals [14][15] - Free cash flow increased to €282 million in H1 2025 from €79 million in H1 2024, indicating strong cash generation capabilities [17][19] Segment Performance - The PWR-Transmission segment saw a remarkable organic growth of +21.7% in H1 2025, with adjusted EBITDA rising to €88 million [28][30] - PWR-Grid reported organic growth of +5.6% with adjusted EBITDA at €107 million, maintaining a high margin despite slight declines [32][34] - PWR-Connect achieved standard sales of €1.186 billion, with adjusted EBITDA increasing by +22.4% year-on-year [35][37] - The Non-Electrification segment experienced a decline of -5.2% in organic growth, reflecting challenges in the Automation and Rail markets [39] Strategic Initiatives - Nexans' strategic focus on sustainability was highlighted by its upgraded CDP score to A, reflecting its commitment to environmental leadership [22][23] - The company launched the ACT 2025 employee share ownership plan, achieving a participation rate of 46%, indicating strong employee engagement [27] - Nexans continues to prioritize M&A as a core part of its strategy, with net cash inflows from M&A activities amounting to €613 million in H1 2025 [18][19] Outlook - The company remains confident in its long-term growth trajectory, supported by a solid balance sheet and no leverage, with a leverage ratio of 0.06x [15][19] - Nexans is committed to executing its strategic roadmap and priorities, reaffirming its targets set during the 2024 Capital Markets Day [42]

Core Viewpoint - Shenzhen Wole Cable Co., Ltd. (referred to as "Wole Cable") has submitted an application for listing on the Hong Kong Stock Exchange, with joint sponsors being CITIC Securities International and China Merchants Securities International [2] Company Overview - Wole Cable was established in June 1998 and listed on the A-share main board in 2007. The company specializes in high-speed data communication and alternative energy power transmission solutions, and is a leading manufacturer in the high-speed copper cable market [2] - The company focuses on the research, manufacturing, and sales of polymer radiation-modified new materials, offering over 2,500 products including high-speed copper cables, automotive data communication cables, industrial automation and robotics cables, single-wall heat shrink tubing, medical tubing, and DC charging guns for new energy vehicles [2] Market Position - Wole Cable is the second-largest manufacturer of high-speed copper cables globally, holding a market share of 24.9%. It is also the leader in the heat shrink materials industry with a market share of 20.6%, and dominates the Chinese market for DC charging guns for new energy vehicles with a share of 41.7% [2] Financial Performance - The company's revenue for 2022, 2023, and 2024 is projected to be 5.337 billion yuan, 5.719 billion yuan, and 6.92 billion yuan respectively, with net profits of 660 million yuan, 758 million yuan, and 921 million yuan [3] - In Q1 2025, the company reported revenue of 1.759 billion yuan, a year-on-year increase of 26.6%, and a net profit of 250 million yuan, up 35.86% year-on-year [4] Accounts Receivable - Wole Cable's accounts receivable and other receivables net amount for 2022, 2023, and 2024 are 2.604 billion yuan, 2.966 billion yuan, and 3.579 billion yuan, accounting for 48.79%, 51.86%, and 51.72% of revenue respectively [6] - The expected credit loss provision for accounts receivable and other receivables increased from 133 million yuan in 2022 to 175 million yuan in 2024 [7] Cash Flow and Debt - The net increase in cash and cash equivalents for 2022, 2023, and 2024 is decreasing, with figures of 130 million yuan, 77.923 million yuan, and 2.373 million yuan respectively [9] - As of the end of 2024, the company had cash and cash equivalents of 877 million yuan, while short-term debt amounted to 1.082 billion yuan, resulting in a cash shortfall of 205 million yuan [10] Dividend Policy - Despite cash shortages, Wole Cable has maintained a habit of distributing dividends, with payouts of 44.1 million yuan, 50.4 million yuan, and 212 million yuan from 2022 to 2024. On June 16, 2025, the company announced a further dividend of 171 million yuan [11]

Investment Rating - The report does not explicitly provide an investment rating for Time Interconnect (1729.HK) Core Insights - Time Interconnect is expected to experience revenue growth in 2025 driven by rising AI demand, production site diversification, and exposure to various end markets [1][8] - The company reported revenues of HK$7.4 billion in 2024, with a gross margin of 14.6% [3] - The revenue from server ODM business reached HK$3.2 billion in 2024, accounting for 43% of total revenue [7] Summary by Sections Industry Overview - Time Interconnect specializes in customized copper and optical fiber cables, as well as servers ODM, with production sites in mainland China, Japan, and Mexico [3] - Key applications include telecommunications, data centers, industrial equipment, medical equipment, and automotive wiring harnesses [3] Growth Drivers - AI demand is driving the adoption of high-speed cables, with a reported 208% year-over-year growth in high-speed cable revenues in 2024 [4] - 42% of cable assembly revenues were derived from data center clients in 2024, indicating strong demand from this sector [4] Business Outlook - Management is optimistic about revenue growth in 2025, supported by the expansion of the Mexican production site and increasing capex spending from Chinese CSP clients [8] - The planned acquisition of Leoni AG is expected to diversify the business into automotive cables and wiring harnesses [8]

Financial Data and Key Metrics Changes - Consolidated net sales for Q2 FY2025 increased by 8.9% to $17.5 million compared to $16.1 million in the same period last year, driven by growth in specialty markets [7][8] - Gross profit increased by 32.1% or $1.3 million to $5.3 million in Q2 FY2025, with gross profit margin rising to 30.4% from 25.1% in Q2 FY2024 [9][10] - The company recorded a net loss of $698,000 or $0.09 per share for Q2 FY2025, an improvement from a net loss of $1.6 million or $0.21 per share in Q2 FY2024 [11] Business Line Data and Key Metrics Changes - Net sales in specialty markets increased, while enterprise markets remained stable, contributing to overall sales growth [7][8] - SG&A expenses rose to $5.7 million in Q2 FY2025, but as a percentage of net sales, it decreased to 32.7% from 33% in the prior year [10][11] Market Data and Key Metrics Changes - Sales backlog and forward load increased to $7.2 million at the end of Q2 FY2025, up from $6.6 million at the end of Q1 FY2025 [5][9] Company Strategy and Development Direction - The company is focused on executing growth strategies and capitalizing on operating efficiencies to drive shareholder value [5][6] - OCC is exploring opportunities in the data center market, particularly in Tier two and Tier three segments, while also expanding its product offerings [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about positive industry trends and the potential for continued growth in the second half of FY2025 [5][30] - The company noted that it has experienced less impact from tariffs compared to competitors, benefiting from having all manufacturing facilities located in the U.S. [32] Other Important Information - The company does not provide forward-looking guidance but has indicated positive trends in sales and backlog growth [29][30] - OCC's gross profit margin is heavily influenced by product mix, which can vary quarterly [10][36] Q&A Session Summary Question: Demand from data centers and growth opportunities - Management acknowledged the demand in data centers but clarified that OCC has not targeted hyperscale data centers, focusing instead on Tier two and Tier three markets [17][18] Question: Operational leverage potential - Management indicated that operational leverage can be seen in historical results, with fixed costs spread over larger volumes leading to improved margins [25][26] Question: Business related to copper vs. fiber - Management confirmed that fiber constitutes the largest portion of the business, although some products are hybrid [27] Question: Update on data centers and opportunities - Management reiterated that while data center sales are significant, growth is more pronounced in military markets currently [20][28] Question: Company outlook compared to previous quarters - Management noted that sales typically see seasonality, with the second half of the fiscal year expected to be stronger [30] Question: Impact of tariffs and Build in America trends - Management stated that while tariffs have affected some products, the impact has been less severe than for competitors due to U.S.-based manufacturing [32] Question: Backlog significance - Management explained that the backlog includes all confirmed orders, indicating both near-term and future demand [34] Question: Expected sequential revenue growth - Management indicated that while they do not provide guidance, historical trends suggest stronger sales in the second half of the fiscal year [35] Question: Gross margin at full capacity - Management noted that gross margins at full capacity depend on product mix, making it difficult to provide specific figures [36]

Core Insights - Nexans inaugurates Stella Nova, a new Center of Excellence in Hanover, Germany, aimed at addressing future power needs of data centers and showcasing superconducting cable technology [2][3][6] - The facility spans 9,000 m² and houses over 70 experts focused on innovation in energy transmission and sustainability [3][4] - Superconducting cable systems can transmit up to 10 times more power than conventional cables with zero energy loss, presenting significant opportunities for various applications [4][5] Company Commitment - The establishment of Stella Nova marks Nexans' 125 years of industrial history and reinforces its commitment to the energy transition and decarbonization of infrastructures [6][9] - Nexans aims to play a central role in enabling the transition to renewable energies and building a sustainable digital economy [6][7] - The company generated €7.1 billion in standard sales in 2024 and is recognized as a leader in climate action, committing to Net-Zero emissions by 2050 [9]