Research Express | Tapai Group (002233) Accepts Investor Online Research; Net Profit 6.34 billion, Up 17.87%; Dividend Payout Ratio Reaches 89%

March 30, Guangdong Tapai Group Co., Ltd. (hereinafter “Tapai Group”) held its 2025 annual performance briefing online through the Value Online interactive platform, attracting many investors to participate online. The company’s management held in-depth discussions with investors on core issues such as performance results, business planning, and shareholder returns, disclosing key information including net profit growing against the trend, the sustainability of a high-dividend policy, and the 2026 cost-reduction and efficiency-improvement initiatives.

Basic Information on Investor Activities

Core Performance Interpretation: Revenue declines, but profit grows against the trend by 17.87%

The announcement shows that in 2025, Tapai Group’s operating revenue fell year over year by 3.91%, but the net profit attributable to shareholders of the listed company reached RMB 634M, up 17.87% year over year. Regarding the contrast of “revenue down but profit up,” the company explained that this mainly results from three factors:

First, sales grew against the trend. Driven by an improvement in the regional market climate and a low base from the same period last year, the company’s cement sales increased 1.14% year over year, and the “cement + clinker” sales rose 0.91% year over year, outperforming the industry overall performance;

Second, the cost decline was greater than the price decline. With lower procurement prices for fuels and raw materials such as coal, and strengthened cost management capabilities, the company’s consolidated gross margin improved by 2.37 percentage points year over year, improving the profitability level of its core business;

Third, investment income thickened earnings. Continued rebound in the capital market led to year-over-year growth in the company’s investment income (including unrealized gains).

Cement business revenue decline mainly due to price weakness: Four major measures in 2026 to cope with demand fluctuations

Regarding the reasons for the cement business revenue decline that investors focused on, the company clearly stated that it is mainly affected by the decline in sales prices. In 2025, the “cement + clinker” volume reached 16.74 million tons, up slightly by 0.91% year over year, but the average cement selling price fell 4.25% year over year to RMB 228 per ton, leading to a 3.99% year-over-year decline in operating revenue.

Looking ahead to 2026, the company proposed four response measures:

1. Strengthen the foundation of the cement industry: strengthen resource assurance, promote process innovation, deepen procurement management reform, optimize capacity layout and product structure, and accelerate green transformation and digital intelligence enablement;

2. Strengthen the “cement +” business: cultivate an environmental protection business involving synergistic disposal of solid hazardous waste in cement kilns, integrate concrete business, and enhance operational efficiency of manufactured sand and stone production lines;

3. Accelerate the development of diversified businesses: expand the scale of photovoltaic installations (by the end of 2025, installed capacity was 51.50MW), steadily expand the investment business, and cultivate new profit growth engines;

4. Deepen reform and innovation: promote smart factory construction and continue extreme cost reduction.

High-dividend policy is sustainable: Shareholder returns are secure for the next three years

In 2025, Tapai Group planned to distribute RMB 4.80 in cash dividends for every 10 shares (including tax). The total dividend amount was RMB 528 million, and the dividend payout ratio was as high as 89%. The company said that, according to the “Three-Year Shareholder Return Plan (2024-2026),” annual cash dividends will not be less than 70% of the net profit for the relevant year and will not be less than RMB 0.45 per share. Considering the current operating situation and that future capital expenditures are not large, the company will still roll out dividend plans with similar high appeal after the plan term expires, aiming to increase the dividend yield rate to attract long-term capital.

Responses to Other Key Questions

• Inventory increases: Inventory at year-end increased mainly due to concentrated production scheduling in December (affected by the staggered kiln shutdown policy and maintenance arrangements). There is no pressure from slow-moving sales;
• Strategy for the East China market: The 21.02% decline in revenue in the East China region was due to short-term fluctuations in regional demand. The company will adopt flexible marketing, consolidate market share, and dynamically optimize resource allocation;
• Trust product risk: The balance of existing real-estate-related trust products was RMB 101 million. A cumulative impairment provision of RMB 82.3619 million has been made. The underlying projects are located in first- and second-tier cities, and risks associated with the real estate policy recovery are controllable;
• Scope for cost reduction: In 2026, the company will reduce costs by expanding the photovoltaic scale, substituting fuel to reduce coal consumption (targeting a 30% substitution of coal use), and through intelligent upgrades, among other measures;
• Energy storage progress: As of the end of 2025, the scale of energy storage installed capacity was 40MW/80MWh, mainly using the peak-valley electricity price spread to meet self-use needs.

Tapai Group stated that in 2026, it will continue to focus on its core business, enhance its risk resilience and profitability level through green transformation, digital intelligence upgrades, and expansion of diversified businesses, and create continuous value for shareholders.

Statement: There are risks in the market, and investment requires caution. This article is automatically published by an AI large model based on third-party databases and does not represent Sina Finance’s viewpoints. Any information appearing in this article is only for reference and does not constitute personal investment advice. In case of discrepancies, please refer to the actual announcements. If you have any questions, please contact biz@staff.sina.com.cn.

Click to view the full text of the original announcement>>

Endless information and precise analysis are all on the Sina Finance app

Responsible editor: Xiao Lang Express