Xinyegang Shares' net profit in 2025 is expected to increase by over 36% year-on-year, but operating cash flow is projected to decline by nearly 62% year-on-year. Revenue is expected to grow by 0.15% in 2026.

Xiyeg股份 (SZ000960, stock price 32.50 yuan, market value 53.477 billion yuan) disclosed its 2025 annual report on the evening of March 29. The company achieved revenue of 43.535 billion yuan in 2025, a year-on-year increase of 3.72%; net profit attributable to shareholders of the listed company was 1.966 billion yuan, a year-on-year increase of 36.14%; the non-net profit was about 2.418 billion yuan, a year-on-year increase of 24.48%; basic earnings per share were 1.1561 yuan. The company plans to distribute a cash dividend of 2.5 yuan for every 10 shares, without issuing bonus shares.

Image source: Xiyeg股份 annual report

Although net profit recorded growth, reporters from the Daily Economic News noted that due to a significant increase in futures margin and raw material prepayments, the net cash flow from operating activities for Xiyeg股份 decreased by 61.95% year-on-year to 1.295 billion yuan.

Net profit fell short of expectations, domestic and global market share further increased

Looking vertically, this marks the recovery of revenue for Xiyeg股份 after three consecutive years of decline (2022-2024). Additionally, the net profit attributable to shareholders of 1.966 billion yuan set a new high for a single year since 2021. However, according to data compiled by Wind Financial Terminal, the consensus forecast from 9 institutions for Xiyeg股份’s net profit attributable to shareholders in 2025 is approximately 2.409 billion yuan, making the disclosed figure of 1.966 billion yuan fall short of expectations. The disclosed value is 18.37% lower than the consensus forecast.

At a time when regulatory authorities place great emphasis on “market value management,” Xiyeg股份 plans to distribute a year-end cash dividend of 411 million yuan for 2025, in addition to the 181 million yuan already distributed in the first three quarters, bringing the total annual dividend to 592 million yuan, which accounts for 30.13% of net profit attributable to shareholders. Over the past three years, the total dividend has approached 1.5 billion yuan. At the same time, the company used its own funds to repurchase 370,000 shares, which have been canceled, reducing registered capital.

The annual report shows that Xiyeg股份’s tin production and sales continue to rank first in the world, holding the largest share of the global tin market.

Additionally, based on its own production and sales data and relevant data published by industry associations, Xiyeg股份 calculates that its domestic market share will rise to 53.35% in 2025, an increase of 5.37 percentage points from 2024. Its global market share will be 27.16%, an increase of 2.13 percentage points from 2024. Besides tin, Xiyeg股份’s Dulong mining area has the world’s largest indium resource reserves (native indium accounts for nearly 29% of the domestic total).

Although there are concerns in the secondary market about cyclical fluctuations, the annual report from Xiyeg股份 reveals a new growth driver for tin demand—the explosive growth of emerging fields such as new energy vehicles, photovoltaics, AI computing power, and grid upgrades, which has become the core driving force for demand growth. The company stated that with the global semiconductor cycle on the rise and the increase in intelligence rates, the “green, low-melting point, and good conductivity” characteristics of tin are accelerating its transition from a traditional industrial metal to a “strategic technology metal.”

Expecting 0.15% revenue growth in 2026

The annual report shows that the net cash flow generated from operating activities for Xiyeg股份 decreased by 61.95% year-on-year to 1.295 billion yuan, with the company stating that “the main reason was the increase in futures margin and raw material prepayments paid during this period compared to the previous period.”

At the same time, the net cash flow generated from investment activities decreased by 150.92% year-on-year, primarily due to the receipt of funds from the reduction of equity in new materials companies in the previous period and the new investments in the tin-indium laboratory during this period. The simultaneous decline in both operating cash flow and investment cash flow led to a decrease of 94.92% in the net increase of cash and cash equivalents at the end of the period compared to the previous year.

Image source: Xiyeg股份 annual report

Regarding the significant discrepancy between the net cash flow generated from operating activities and net profit during the reporting period, Xiyeg股份 further explained that “the main reasons were non-cash gains and losses such as asset amortization and write-offs, changes in operating receivables and payables, and adjustments for changes in inventory.”

Reporters from the Daily Economic News noted that Xiyeg股份 made significant adjustments to its debt structure during the reporting period. At the end of the period, long-term loans decreased by 57.45% to 2.473 billion yuan, while short-term loans increased by 266.7% year-on-year to 4.4 billion yuan. This is clearly reflected in the company’s financial expenses, which decreased to 206 million yuan, a significant year-on-year reduction of 29.53%.

In the annual report, Xiyeg股份 clearly stated its main work goals for 2026: expecting revenue of 43.6 billion yuan, which is an estimated growth of about 0.15% compared to the 43.535 billion yuan in 2025. The annual report also disclosed that the company plans to produce 90,000 tons of tin this year (compared to 91,200 tons in 2025), 125,000 tons of copper, 135,000 tons of zinc, and 91.6 tons of indium ingots (compared to 106 tons in 2025).

However, the company added that “this plan is a guiding indicator, and the final results are subject to various uncertainties influenced by multiple internal and external environmental factors and operational management, thus it does not constitute a substantive commitment to operating revenue and the production volume of each product.”