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.

Xi Industry Co., Ltd. (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 net profit excluding non-recurring gains and losses was approximately 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, with no bonus shares issued.

Image source: Xi Industry Co., Ltd. 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 of Xi Industry Co., Ltd. decreased by 61.95% year-on-year to 1.295 billion yuan during the reporting period.

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

Viewed vertically, this marks the recovery of Xi Industry Co., Ltd.'s revenue after three consecutive years of decline (2022-2024). Additionally, the net profit attributable to the parent company of 1.966 billion yuan set a new annual high since 2021. Nevertheless, according to data compiled by Wind Financial Terminal, 9 institutions have a consensus forecast for Xi Industry Co., Ltd.'s 2025 net profit attributable to the parent company at approximately 2.409 billion yuan; therefore, based on the company’s disclosed figure of 1.966 billion yuan, it fell short of expectations. The disclosed value is 18.37% lower than the consensus forecast.

Image source: Wind

Image source: Wind

In the current context where regulators place great importance on “market value management,” Xi Industry Co., Ltd. plans to distribute a year-end cash dividend of 411 million yuan for 2025, combined with the 181 million yuan already distributed in the first three quarters, totaling 592 million yuan for the year, which accounts for 30.13% of the net profit attributable to the parent company. The total dividends over the past three years have approached 1.5 billion yuan. Meanwhile, the company used its own funds to repurchase 370,000 shares, which have been canceled, reducing its registered capital.

The annual report shows that Xi Industry Co., Ltd. continues to maintain its position as the world’s largest producer and seller of tin, holding the largest share of the global tin market.

Additionally, Xi Industry Co., Ltd. estimates that its domestic market share for 2025 will rise to 53.35%, an increase of 5.37 percentage points from 2024, while its global market share will be 27.16%, up 2.13 percentage points from 2024. Besides tin, Xi Industry Co., Ltd. has the largest indium resource reserves in the world in the Dulon mining area (native indium accounts for nearly 29% of the domestic total).

Although there are concerns about cyclical fluctuations in the secondary market, Xi Industry Co., Ltd.'s annual report reveals a new growth driver for tin demand — the explosive growth in 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 states that with the global semiconductor cycle on the upswing and the increase in intelligentization, 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.”

Expected revenue growth of 0.15% in 2026

The annual report indicates that the net cash flow from operating activities decreased by 61.95% to 1.295 billion yuan compared to the previous year, which the company attributes to the “main reason being the increase in futures margin and raw material prepayments compared to the previous period.”

At the same time, the net cash flow from investing activities decreased by 150.92% compared to the previous year, mainly due to the funds received from reducing the holdings in certain new material company equity in the previous period and new investments in the tin-indium laboratory in the current period. The simultaneous decline of operating cash flow and investment cash flow caused the net increase in cash and cash equivalents at the end of the period to decrease by 94.92% compared to the previous year.

Image source: Xi Industry Co., Ltd. annual report

Regarding the significant discrepancy between the net cash flow from operating activities and net profit during the reporting period, Xi Industry Co., Ltd. further explains that it is “mainly due to non-cash gains and losses such as asset amortization and write-offs, changes in operating receivables and payables, inventory changes, and other adjustment items.”

Reporters from Daily Economic News noticed that Xi Industry Co., Ltd. made significant adjustments to its debt structure during the reporting period. Long-term borrowings decreased by 57.45% to 2.473 billion yuan, while short-term borrowings increased by 266.7% year-on-year to 4.4 billion yuan. This is directly reflected in the company’s financial expenses, which fell to 206 million yuan for the current period, a significant decrease of 29.53% year-on-year.

In the annual report, Xi Industry Co., Ltd. clearly outlines its main work goals for 2026: it expects revenue of 43.6 billion yuan, representing an approximate increase of 0.15% compared to the 43.535 billion yuan in 2025. The annual report also discloses that the company plans to complete production of 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 adds that “this plan is a guiding indicator, and the final results are subject to various internal and external environmental factors and management, thus there is uncertainty and it does not constitute a substantive commitment to operating revenue and production volume of each product.”

(Source: Daily Economic News)