Fangda Special Steel Technology (600507) Q4 2025 earnings summary

Executive summary

• Revenue for 2025 was RMB 18.23 billion, down 15.43% year-over-year due to lower steel prices.

• Net profit attributable to shareholders surged 280.18% year-over-year to RMB 942 million, driven by cost reductions and improved margins.

• The board proposes a cash dividend of RMB 2 per 10 shares for 2025, pending shareholder approval.

• Audit opinion is standard unqualified; internal controls deemed effective.

Financial highlights

• Operating income: RMB 18.23 billion, down 15.43% year-over-year.

• Net profit attributable to shareholders: RMB 942 million, up 280.18% year-over-year.

• Operating cash flow: RMB 464 million, down 47.08% year-over-year.

• Gross margin for special steel segment increased by 4.91 percentage points to 8.69%.

• Basic and diluted EPS: RMB 0.407, up 273.39% year-over-year.

Outlook and guidance

• 2026 steel industry expected to enter a phase of “tight balance, optimized structure, and quality improvement.”

• Domestic demand structure to shift further toward manufacturing, with construction steel demand stabilizing and high-end steel demand rising.

• Company targets 2026 steel output and sales of 4.02 million tons, with continued focus on cost control, product innovation, and digital transformation.