Citic Pacific Special Steel Group (000708) investor relations material

Executive summary

• Achieved annual steel sales of 19.54 million tons, with exports of 2.30 million tons, maintaining global leadership in high-end bearing steel and expanding market share in automotive, energy, and engineering sectors.

• Revenue reached ¥107.37 billion, net profit attributable to shareholders was ¥5.93 billion, up 15.67% year-over-year, with core indicators outperforming industry averages.

• High-end product sales surged: high-speed rail bearing steel, deep-well drilling steel, and new energy automotive mold steel saw significant growth, with “small giant” projects achieving 6% sales growth.

• Technological innovation accelerated, with 499 patents granted, 33 national/industry standards released, and 16 major science and technology awards.

• ESG ratings improved, market capitalization rose 49.67%, and internationalization advanced through strategic acquisitions and overseas R&D centers.

Financial highlights

• Operating revenue: ¥107.37 billion, down 1.68% year-over-year.

• Net profit attributable to shareholders: ¥5.93 billion, up 15.67% year-over-year.

• Net profit after non-recurring items: ¥5.84 billion, up 17.41% year-over-year.

• Operating cash flow: ¥14.64 billion, up 36.25% year-over-year.

• Basic EPS: ¥1.17; diluted EPS: ¥1.15; ROE: 14.08%.

• Total assets: ¥110.32 billion; net assets attributable to shareholders: ¥43.59 billion.

• Gross margin: 14.94%, up 2.09 percentage points year-over-year.

Outlook and guidance

• 2026 sales target: 19.10 million tons, with exports of 2.40 million tons.

• Focus on high-end, intelligent, and green transformation, with continued investment in R&D, digitalization, and low-carbon initiatives.

• Plans to deepen internationalization, expand overseas manufacturing and R&D, and enhance global supply chain resilience.

• Risks include global economic volatility, intensified competition, environmental compliance costs, policy shifts, and export uncertainties; mitigation strategies include product diversification, cost control, and enhanced R&D.