Shares of Yangtze Optical Fibre and Cable Joint Stock Limited Company (YOFC, 06869.HK) plunged 5% in early trading on Friday, following the release of its third-quarter financial results and announcement of board changes. The sharp decline comes as investors react to the company's disappointing profit figures and leadership transition.

YOFC reported a significant 18.02% year-on-year decrease in net profit attributable to shareholders, which fell to RMB 470 million for the first three quarters of 2025. This decline in profitability overshadowed the company's 18.18% increase in operating revenue, which reached approximately RMB 10.275 billion. The conflicting revenue and profit trends suggest potential challenges in maintaining profit margins amid growing sales.

Adding to investor concerns, YOFC announced the resignation of non-executive director Mr. Xiong Xiangfeng due to retirement, effective immediately. The company has proposed appointing Mr. Qiu Xiangping as a new non-executive director, subject to shareholder approval. While the board changes are not expected to disrupt operations, they contribute to a period of transition for the company's leadership. As YOFC navigates these financial and organizational changes, market participants will be closely monitoring the company's ability to improve profitability and maintain its market position in the optical fibre and cable industry.