LB Group (002601) Q4 2025 earnings summary

Executive summary

• 2025 revenue reached ¥25.97 billion, down 5.61% year-over-year; net profit attributable to shareholders was ¥1.24 billion, down 42.61%.

• Gross margin declined, with basic EPS at ¥0.52, a 42.86% decrease year-over-year.

• Operating cash flow increased 4.44% to ¥3.97 billion.

• The company maintained global leadership in titanium dioxide and sponge titanium production capacity.

Financial highlights

• Revenue: ¥25.97 billion (–5.61% YoY); net profit: ¥1.24 billion (–42.61% YoY).

• Gross margin for titanium dioxide: 23.04% (–8.31pp YoY); overall chemical segment margin: 21.32%.

• Operating cash flow: ¥3.97 billion (+4.44% YoY); total assets: ¥64.42 billion (–2.68% YoY).

• R&D investment: ¥1.13 billion, 4.37% of revenue.

• Dividend payout: ¥14.23 billion in cash dividends for the year.

Outlook and guidance

• 2026 marks the start of the “15th Five-Year Plan”; focus on global expansion, product upgrades, and green circular economy.

• Plans to further increase chloride-process titanium dioxide capacity and expand in high-end titanium and battery materials.

• No annual cash dividend, stock dividend, or capital reserve transfer planned for 2025.