Xingda International (1899) H2 2025 earnings summary

Executive summary

• Revenue declined by 3.9% year-over-year to RMB11,480.3 million for 2025, mainly due to lower product pricing.

• Profit attributable to owners rose 26.5% to RMB340.4 million, with basic EPS up 24.7% to RMB17.75 cents.

• Gross profit margin improved by 0.2 percentage points to 18.6%, attributed to reduced cost of sales from upgraded production technology.

• Sales volume slightly decreased by 0.3% to 1,424,000 tonnes, but radial tire cords for trucks and passenger cars saw modest growth.

• No final dividend was recommended, but a one-off special dividend of 25.0 HK cents per share was approved post-year-end.

Financial highlights

• EBITDA increased 14.3% year-over-year to RMB1,785.4 million, with EBITDA margin rising to 15.6%.

• Net profit for the year increased 21.8% to RMB472.2 million, with net margin up to 4.1%.

• Export sales volume rose 5.9% to 377,000 tonnes, with export sales stable at RMB3,871 million.

• Other income rose 10.3% to RMB229.8 million, mainly from VAT deductions.

• Finance costs fell 8.3% to RMB202.3 million due to lower interest rates and reduced borrowings.

Outlook and guidance

• The industry faces continued pressure from weak domestic demand, overcapacity, and global trade protectionism.

• New energy vehicles are expected to drive future growth in radial tire cords and overseas market demand remains steady.

• The company will focus on high-quality growth, technological innovation, and green upgrades in 2026.

• Profit is expected to trend upward in the latter half of 2026 as domestic demand policies take effect.

• Automotive sector growth projected to decelerate; macroeconomic pressures anticipated for tire and radial tire cord industries.