Hunan Valin Steel (000932) investor relations material

Executive summary

• Revenue for 2025 was ¥121.14 billion, down 15.94% year-over-year; net profit attributable to shareholders rose 28.49% to ¥2.61 billion.

• Gross margin improved, with steel segment profitability leading the industry; product mix shifted further to high-end steel, with specialty steel sales ratio reaching 68.5%.

• Cash flow from operations increased 13.78% to ¥6.57 billion; total assets at year-end were ¥148.54 billion.

• Board approved a cash dividend of ¥1.6 per 10 shares and completed a share buyback totaling 56 million shares.

Financial highlights

• Operating income: ¥121.14 billion (–15.94% YoY); net profit: ¥2.61 billion (+28.49% YoY); EPS: ¥0.3793.

• Gross margin for steel segment rose 3.46 percentage points; financial expenses dropped 62.77% due to lower interest costs.

• R&D expenses were ¥5.38 billion, 4.44% of revenue; capital expenditures reached ¥9.13 billion (+15.07% YoY).

• Asset-liability ratio declined to 53.46%, down 2.55 percentage points from prior year.

Outlook and guidance

• 2026 focus: accelerate high-end product development, digital transformation, and green manufacturing.

• Plans to increase high-end steel output, enhance cost control, and deepen supply chain resilience.

• Risks include market competition, raw material price volatility, and stricter environmental regulations.