Key takeaway

In 2025, the company’s Guangxi project reached full capacity and standard operation, becoming an important source of fullyear performance growth; driven by the dual engines of “power + energy storage,” demand for iron phosphate remained strong and profitability recovered; the development and utilization of phosphate rock continued to deepen, with production and sales steadily increasing. We are optimistic that the company, based on resources and driven by technology, will continue to promote its “mineral+chemical business integration” by focusing on the release of high-quality upstream phosphate rock resources and the extension of downstream deep-processing chains, continuously delivering on its growth logic and achieving highquality shareholder returns.

Event

In 2025, the company achieved revenue of RMB8.328bn, +41.02% YoY; net profit attributable to shareholders of the parent company was RMB1.26bn, +31.76% YoY; net profit attributable to shareholders of the parent company excluding non-recurring items was RMB1.243bn, +32.74% YoY; net cash flow from operating activities was RMB642mn, -25.29% YoY. Among them, in 4Q25 the company achieved revenue of RMB2.524bn, +3.27% QoQ; net profit attributable to shareholders of the parent company was RMB296mn, -31.00% QoQ. The company plans to distribute a cash dividend of RMB15.00 (tax included) for every 10 shares in 2025, with no bonus shares and no capitalization of capital reserve. Based on the latest total share capital of 605,906,383 shares, the total annual cash dividend is estimated to be about RMB909mn; together with the implemented interim cash dividend of RMB182mn and share buyback of RMB57mn, the company’s total cash dividends and share buyback for 2025 amount to about RMB1.148bn, accounting for 91.08% of the net profit attributable to shareholders of the parent company in 2025.

Risks:

(1) Risk of unexpected fluctuations in product and raw material prices: The company's core revenue and profit sources include products such as phosphoric acid, feed-grade monocalcium phosphate, monoammonium phosphate, and phosphate rock. The prices of these bulk chemicals are significantly influenced by global macroeconomic conditions, grain prices, energy costs (such as sulfur and synthetic ammonia), and supplydemand 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) Risk of asset impairment related to long-term equity investment in a mining company: The company indirectly holds equity in Tianyi Mining through its subsidiary Fuqi Mining. The latter’s main asset is the mining right of the Laohudong phosphate mine in Yuhua Township, Weng’an County, whose value is the primary factor determining the value of the company’s long-term equity investment in Tianyi Mining. If phosphate rock prices decline, phosphate rock production costs rise, recoverable reserves decrease, risk-free interest rates and discount rates increase, or major construction technical issues occur during project development, the company’s long-term equity investment in Tianyi Mining may face asset impairment risk and affect the company’s currentperiod profit.