China Oriental Group Company (581) H2 2025 earnings summary

Executive summary

• Revenue decreased by 5.9% year-over-year to RMB40.41 billion, mainly due to lower steel prices and weak demand, but net profit rose 30.2% to RMB292 million, driven by cost reductions and higher sales volume of steel products.

• Gross profit for self-manufactured steel products surged 86.1% to RMB1.91 billion, with gross margin improving from 4.2% to 8.2% year-over-year.

• EBITDA increased 20.4% to RMB1.81 billion, and basic EPS rose to RMB0.06 from RMB0.04.

• Adjusted profit (excluding real estate impairments) was RMB467 million, up 75.5% year-over-year.

• Final dividend of HK$0.02 and special dividend of HK$0.05 per share proposed for 2025.

Financial highlights

• Sales volume of self-manufactured steel products increased 9.6% to 7.86 million tonnes; average selling price fell 13.2% to RMB2,978/tonne.

• Trading revenue from steel products, iron ore, and related materials dropped 7.0% to RMB12.96 billion, with a gross loss of RMB9 million.

• Real estate revenue was RMB92 million, with an operating loss of RMB19 million.

• Total assets stood at RMB50.65 billion, and cash and cash equivalents were RMB3.78 billion.

• Debt-to-capital ratio was 65.7%, and current ratio was 1.2x.

Outlook and guidance

• Expects moderate recovery in downstream industries and gradual improvement in steel demand in 2026, but notes ongoing uncertainties from macroeconomic and geopolitical risks.

• Plans to advance key projects such as the NEMM joint venture, green energy initiatives, and digital transformation.

• Focus on high-value-added products, business diversification, and green, low-carbon development to enhance competitiveness.