Shougang Resources (00639.HK)2025 Annual Revenue Approximately HKD 5.056 billion, down 2% year-on-year

Gelonghui, March 26丨Shougang Resources (00639.HK) announced that for the year ending December 31, 2025, the group recorded operating revenue of approximately HKD 5.056 billion, a year-on-year decrease of about HKD 80 million or 2% compared to the previous year’s approximately HKD 5.136 billion. The decline in operating revenue was mainly due to a significant year-on-year reduction of 36% in the average realized selling price of premium coking coal, which offset the positive impact of expanding the coal trading business.

The group recorded a net profit of approximately HKD 745 million, and the profit attributable to shareholders of the company was approximately HKD 632 million, representing significant year-on-year declines of about 59% and 58%, respectively. During the review year, the group’s net profit was significantly down approximately 59% year-on-year, mainly due to (i) a substantial decrease in gross profit of approximately HKD 1.568 billion or 59%; (ii) a decrease in interest income of approximately HKD 28 million or 15% year-on-year as market deposit rates were lowered; and (iii) an increase in general and administrative expenses of approximately HKD 53 million or 25% due to additional expenditures arising from preliminary design and exploration costs of potential coal mine projects. On the other hand, during the review year, (i) sales and distribution expenses decreased by approximately HKD 48 million year-on-year due to the decline in the proportion of coal sales along with effective cost measures; (ii) foreign exchange gains increased by approximately HKD 118 million year-on-year due to the appreciation of the RMB against the HKD; and (iii) the income tax expense decreased in line with the group’s net profit decline of approximately 59% year-on-year. Ultimately, the group recorded a net profit of approximately HKD 745 million for the review year, a significant year-on-year decline of approximately 59%.