Baoshan Iron & Steel (600019) H2 2025 earnings summary

Executive summary

• Achieved total profit of RMB 13.16 billion in 2025, up 40.9% year-over-year, maintaining industry leadership in profitability.

• Net profit attributable to shareholders was RMB 10.35 billion, up 40.5% year-over-year.

• Operating cash flow reached RMB 33.60 billion, up 21.1% year-over-year.

• Asset quality improved, with asset-liability ratio down to 38.0%, a decrease of 1.7 percentage points.

• R&D investment totaled RMB 19.96 billion, accounting for 6.29% of revenue.

Financial highlights

• Operating revenue was RMB 317.51 billion, down 1.4% year-over-year due to lower sales prices.

• Gross margin improved to 7.2%, up 1.8 percentage points year-over-year.

• Basic and diluted EPS were RMB 0.48, up 41.2% year-over-year.

• Net assets attributable to shareholders reached RMB 206.17 billion, up 2.8% from the previous year.

• Cash dividend per share for 2025 was RMB 0.30 (including tax), with a payout ratio of 61.99%.

Outlook and guidance

• 2026 targets: maintain domestic industry-leading profitability, achieve 34.86 million tons of “2+2+N” product sales, and increase export ratio to over 10%.

• Plan to reduce per-ton steel cost by over RMB 100 and increase per capita steel output to 1,600 tons.

• Focus on high-end, intelligent, green, efficient, and international development, with RMB 21.04 billion planned capital expenditure.