ZG Group (6676) investor relations material

Executive summary

• Revenue grew 36.7% year-over-year to RMB2,120.3 million, driven by international and AI businesses.

• Gross profit declined 11.1% to RMB379.1 million, with margin dropping to 17.9% due to a higher share of lower-margin international and non-steel business.

• Net loss widened to RMB591.7 million, mainly due to non-operating and non-cash expenses from the De-SPAC listing and share-based payments.

• Adjusted net loss (non-IFRS) was RMB222.1 million, and adjusted EBITDA was a loss of RMB175.2 million, both reflecting significant one-off items.

• The year marked the first full period as a listed entity after a transformative De-SPAC transaction and PIPE investment.

Financial highlights

• Revenue: RMB2,120.3 million (+36.7% YoY); Gross profit: RMB379.1 million (-11.1% YoY).

• Net loss: RMB591.7 million (vs. RMB68.7 million loss in 2024); Loss per share: RMB0.65.

• Adjusted net loss (non-IFRS): RMB222.1 million; Adjusted EBITDA: loss of RMB175.2 million.

• Operating cash flow: RMB681 million (+60% YoY); Cash position: RMB1,497.7 million.

• Gearing ratio improved to 94.5% from 164.7% due to changes in capital structure.

Outlook and guidance

• Focus on expanding AI-driven services and international business, especially in Southeast Asia and the Middle East.

• Plans to launch AI Agent products for external clients and further develop computing infrastructure business.

• Expense ratios expected to decline as AI strategy deepens.