Fangda Special Steel 2025 Net Profit Increases 280.18% Year-over-Year; Dividend Amount Accounts for Nearly 50% of Net Profit

Reprinted from: Securities Daily

Staff Reporter Cao Qi

On the evening of March 20, Fangda Special Steel Technology Co., Ltd. (hereinafter referred to as “Fangda Special Steel”) officially disclosed its 2025 annual report. During the reporting period, the company achieved operating revenue of 18.233 billion yuan; net profit attributable to shareholders of the listed company was 942 million yuan, a significant increase of 280.18% year-on-year, setting a new stage-high operating performance and significantly improving profitability quality. At the same time, the company announced its 2025 profit distribution plan, proposing to pay a cash dividend of 2 yuan (tax included) per 10 shares for 2025, with the total dividend accounting for nearly 50% of net profit attributable to shareholders of the listed company, and a dividend yield of over 3%.

In 2025, the steel industry is in a deep adjustment cycle of “reducing volume and optimizing stock,” with a differentiation in supply and demand patterns and market prices under pressure becoming the norm. Fangda Special Steel defied the trend, continuously building long-term enterprise value barriers through solid operating results, clear strategic logic, stable shareholder returns, and a comprehensive risk control system.

Core indicators remain industry-leading for many years

In 2025, facing a complex situation of sluggish global economic recovery and deep adjustments in domestic supply and demand structure, steel consumption showed characteristics of “total volume pressure and structural differentiation,” with market demand shrinking and prices continuing to weaken.

Fangda Special Steel accurately grasped the industry trend of “steel for manufacturing replacing construction steel.” Its core advantage product, spring flat steel, saw a 24.48% year-on-year increase in new product inventory throughout the year and successfully entered the high-end international market. On the construction steel side, project sales increased by 102% year-on-year, and balanced development across all categories ensured the company’s resilience to risks.

It is worth noting that as the company’s spring flat steel entered the international high-end market, hot-rolled rebar received EN10080 export certification, and the “Seagull” brand rebar and “Changli” brand spring flat steel were awarded Jiangxi Famous Brand titles. The pace of high-end and internationalization of products accelerated, continuously expanding market space.

A relevant person in charge of Fangda Special Steel told reporters, “In recent years, the company has adhered to the development path of ‘low cost, differentiation, and特色化,’ forming four core competitive advantages that create difficult-to-copy barriers, supporting the company through industry cycles.”

In terms of profitability quality, relying on full-process cost control capabilities, the costs of non-alloy billets, low-alloy billets, and tertiary steel have ranked among the top in the industry. Key profitability indicators such as sales profit margin, profit per ton of steel, and return on equity have maintained the industry’s top position among listed companies for many years.

Enhancing core competitiveness and building a moat

Jian Junhao, founder of Fujian Huace Brand Positioning Consulting, told Securities Daily that by 2026, the steel industry will enter a new stage of “tight balance, optimized structure, and improved quality,” with manufacturing steel becoming the core growth engine.

Looking toward 2026, Fangda Special Steel is actively promoting technological upgrades, accelerating the industrialization of high-end spring flat steel at 2000 MPa, and continuously increasing product added value.

It is understood that the company has already completed cooperation with CATL on five new energy vehicle steel spring plates and two stabilizer bars, with two new products in development, precisely entering the new energy vehicle chassis component track, seizing high-end manufacturing steel dividends, and accelerating the formation of new growth poles.

Meanwhile, the company deepens strategic cooperation with leading enterprises such as Huawei and CATL, promoting cost reduction and efficiency improvement measures to provide solid support for performance growth. In 2025, the company will complete the launch of the pre-iron MES system and the intelligent coal blending system (in cooperation with Huawei), which has been rated at Level 8 for digitalization of manufacturing in Jiangxi Province, with digitalization penetrating the entire production process.

Fangda Special Steel stated that it will continue to promote the “two upgrades” strategy, seize opportunities in new energy steel and high-end special steel industries, continuously enhance the company’s core competitiveness, and create a value anchor during the deep industry adjustment period.