Tongkun Group (601233) investor relations material

Executive summary

• Achieved net profit attributable to shareholders of ¥2.03 billion, up 69.13% year-over-year, with adjusted net profit up 70.31%.

• Revenue was ¥93.89 billion, down 7.32% year-over-year, but gross margin and net margin improved significantly.

• Proposed cash dividend of ¥0.12 per share, totaling ¥285 million, representing a 14.04% payout ratio.

• Industry recovery and improved supply-demand dynamics drove profitability, despite upstream PTA losses.

Financial highlights

• Operating profit reached ¥2.10 billion, up 119.34% year-over-year.

• Basic and diluted EPS were ¥0.86, up 68.63% year-over-year.

• Total assets grew to ¥113.52 billion, up 8.75% year-over-year; net assets attributable to shareholders rose 4.88%.

• Operating cash flow was ¥642 million, down 26.85% year-over-year.

• Gross margin for chemical fiber segment increased by 0.92 percentage points to 5.81%.

Outlook and guidance

• Industry entering a phase of high concentration and differentiation, with head enterprises leading pricing and supply rhythm.

• Focus on green, low-carbon, and new materials as strategic directions.

• Plans to strengthen upstream raw material security, optimize manufacturing efficiency, and expand into new materials and fine chemicals.