Key takeaway

The company maintained stable operations in 2025, with a slight decline in net profit attributable to shareholders. Despite the challenging external environment marked by rising raw material costs and low product prices, it still achieved relatively stable profitability. At the same time, the company maintained stable dividends in 2025, delivering excellent returns to shareholders. In the medium to long term, we remain optimistic that the company will continue to maintain a stable operating strategy, leverage its integrated mining and chemical industry chain advantages, and achieve sustained improvement and upgrading in corporate governance.

Event

After the market closed on March 23, the company released its 2025 annual report, reporting full-year revenue of 48.42 billion yuan, a year-over-year decrease of 21.5%; net profit attributable to shareholders was 5.16 billion yuan, down 3.4% year-over-year; non-GAAP net profit stood at 5.01 billion yuan, declining 3.6% year-over-year. The company simultaneously announced its 2025 profit distribution plan, proposing a cash dividend of 12 yuan per 10 shares. Including the previously distributed interim dividend of 2 yuan per 10 shares, the company will distribute a total of 2.55 billion yuan in cash dividends for 2025, with a dividend payout ratio of 49.5%—marking the third consecutive annual increase.

Risks:

(1) Risk of unexpected fluctuations in product and raw material prices: The company's core profit sources are phosphorus-based chemicals, phosphate fertilizers, and nitrogen fertilizers. The prices of these bulk chemicals are significantly influenced by global macroeconomic conditions, grain prices, energy costs (including sulfur and synthetic ammonia), and supply-demand dynamics, demonstrating strong cyclical characteristics. If raw material and product prices fluctuate significantly, it may affect the profitability of certain segments of the company;

(2) Risks of stricter safety and environmental policies: Under China's "Dual Carbon" goals and the Yangtze River ecological protection strategy, environmental standards in the chemical industry continue to tighten. As a key industry under safety and environmental supervision, the phosphorus chemical industry may face impacts from increasingly stringent safety and environmental policies as well as rising compliance costs, potentially affecting operational indicators such as production capacity utilization rates.

(3) Risks of international trade friction and export policy changes: As a major global exporter of phosphate and nitrogen fertilizers, China faces uncertainties stemming from international geopolitical conflicts, t rade barriers (such as tariffs and anti-dumping investigations), and adjustments to domestic fertilizer export inspection policies.