Inner Mongolia Baotou Steel Union (600010) H2 2025 earnings summary

Executive summary

• Achieved revenue of ¥66.36 billion, down 2.54% year-over-year; net profit attributable to shareholders was ¥374 million, up 41.19% year-over-year.

• Gross margin improved by 1.78 percentage points to 9.66%; operating cash flow increased 8.15% to ¥2.57 billion.

• Significant cost reductions: manufacturing cost per ton of steel decreased by 2.45% year-over-year.

• Focused on high-end product development, digital transformation, and green manufacturing, with record outputs in specialty steels and rare earth steel.

• No cash dividend for 2025; instead, ¥199 million was returned to investors via share buybacks, representing 53.26% of net profit.

Financial highlights

• Revenue: ¥66.36 billion, down 2.54% year-over-year; net profit: ¥374 million, up 41.19%.

• Gross margin: 9.66%, up 1.78 percentage points; basic EPS: ¥0.0083, up 43.10%.

• Operating cash flow: ¥2.57 billion, up 8.15%; total assets: ¥151.67 billion.

• R&D investment: ¥3.37 billion, 5.07% of revenue; 3,182 R&D staff, 12.59% of workforce.

• Non-recurring losses: -¥24.12 million, mainly from asset disposals and government grants.

Outlook and guidance

• 2026 focus: high-quality growth in steel, rare earth, and chemical materials; further digital and green transformation.

• Targeting increased rare earth steel output, expanded resource utilization, and enhanced value-added services.

• Continued cost control, product structure optimization, and international market expansion.