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

By Daily Economic News reporter | Cai Ding |
By Daily Economic News editor | Huang Sheng |

Xijiang Co., Ltd. (SZ000960, share price 32.50 yuan, market cap 53.477 billion yuan) disclosed its 2025 annual report on the evening of March 29. The company reported that in 2025, it achieved revenue of 43.535 billion yuan, up 3.72% year over year; net profit attributable to shareholders of listed companies was 1.966 billion yuan, up 36.14% year over year; non-recurring profit and loss net profit (after deducting non-recurring items) was approximately 2.418 billion yuan, up 24.48% year over year; and basic earnings per share were 1.1561 yuan. The company plans to distribute 2.5 yuan in cash for every 10 shares, with no bonus shares.

Image source: Xijiang Co., Ltd. annual report

Although net profit recorded growth, the reporter from the Daily Economic News (hereinafter referred to as the “Daily Economic News reporter”) noted that due to a substantial increase in paid futures margin and advance payments for raw materials, during the reporting period, Xijiang’s net cash flow from operating activities decreased by 61.95% year over year to 1.295 billion yuan.

Viewed longitudinally, this comes after Xijiang’s revenue fell for three consecutive years (2022—2024) before regaining an upward trend. In addition, the 1.966 billion yuan net profit attributable to the parent company reached a single-year high since 2021. Even so, according to data compiled by the Wind Financial Terminal, nine institutions’ consensus forecast for Xijiang’s 2025 net profit attributable to the parent company is about 2.409 billion yuan. Therefore, based on the company’s disclosed 1.966 billion yuan, it falls short of expectations. The disclosed figure is 18.37% lower than the consensus forecast.

Image source: Wind

Image source: Wind

At a time when regulators place great emphasis on “market value management,” Xijiang plans to distribute cash dividends at year-end of 411 million yuan in 2025. Combined with the 181 million yuan distributed in the first three quarters, full-year cumulative dividends reach 592 million yuan, accounting for 30.13% of net profit attributable to the parent company. Over the past three years, the total dividends have already approached 1.5 billion yuan. Meanwhile, during the year, the company used its own funds to repurchase 370,000 shares and have already carried out share cancellation, reducing registered capital.

The annual report shows that Xijiang’s tin production and sales volume continues to rank first globally, holding the largest share of the global tin market.

At the same time, based on its own production and sales volumes and relevant data released by industry associations, Xijiang calculates that its domestic market share in 2025 rose to 53.35%, up 5.37 percentage points from 2024, while its global market share was 27.16%, up 2.13 percentage points from 2024. In addition to tin, Xijiang’s Longqi Mining Area has the world’s largest proven indium resource reserves (primary indium accounts for nearly 29% domestically).

Although secondary-market investors have concerns about cyclical fluctuations, Xijiang’s annual report reveals a new growth driver for tin demand—explosive growth in emerging sectors such as new energy vehicles, photovoltaic power, AI computing capacity, and grid upgrades—becoming the core engine of demand growth. The company stated that with the global semiconductor cycle rising and the rate of intelligentization increasing, tin’s “green, low melting point, and good conductivity” characteristics enable it to accelerate its transition from traditional industrial metals to “technology strategic metals.”

The annual report shows that during the reporting period, Xijiang’s net cash flow generated from operating activities decreased by 61.95% year over year to 1.295 billion yuan. The company said, “The main reason is that the futures margin and advance payments for raw materials paid in this period increased compared with the prior period.”

Meanwhile, the net cash flow generated from investing activities decreased by 150.92% year over year. The main reason is that, in the prior period, it received proceeds from selling part of its equity in a new materials company, while in this period it added investments in the Xijiang-Indium Laboratory. The simultaneous decline in both operating cash flow and investing cash flow led to Xijiang’s net increase in cash and cash equivalents at period-end decreasing by 94.92% compared with the prior year.

Image source: Xijiang Co., Ltd. annual report

Regarding the reasons for the major differences between the net cash inflow from operating activities and net profit during the reporting period, Xijiang further explained that “the main factors are adjustments from non-cash items such as asset depreciation, amortization, and disposal losses, changes in operating receivables and payables, changes in inventories, and other items.”

The Daily Economic News reporter noted that during the reporting period, Xijiang made a clearly evident adjustment to its debt structure. Long-term borrowings at the end of the period fell by 57.45% to 2.473 billion yuan, while short-term borrowings increased by 266.7% year over year to 4.4 billion yuan. A straightforward reflection is that the company’s financial expenses for this period fell to 206 million yuan, down sharply by 29.53% year over year.

In its annual report, Xijiang clearly set out its key work targets for 2026: it expects revenue of 43.6 billion yuan, representing an expected increase of about 0.15% compared with 43.535 billion yuan in 2025. The annual report also disclosed that this year, the company plans to complete production volumes of 90,000 tons of tin products (91.2 thousand tons in 2025), 125,000 tons of copper products, 135,000 tons of zinc products, and 91.6 tons of indium ingots (106 tons in 2025).

However, the company added that “this plan is a guiding indicator. The final results are subject to uncertainty due to various internal and external conditions, as well as factors such as business management. Therefore, it does not constitute a substantive commitment regarding operating revenue and the production volumes of each product.”

Cover image source: Daily Economic News media resources database

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