Huajin International Holdings Limited (Huajin International) released its audited results for the year ended 31 December 2025, revealing a sharp deterioration in performance and a reversal to negative equity.

Revenue and Profitability • Group revenue fell 85.4% year-on-year to RMB 861.27 million (2024: RMB 5.90 billion), reflecting an 88.7% plunge in combined sales volume of cold-rolled and galvanised steel products to 145,558 tonnes. • The Group recorded a gross loss of RMB 638.69 million versus a gross profit of RMB 31.67 million in 2024. • Loss before taxation widened to RMB 1.22 billion (2024: loss of RMB 116.25 million), driven by:  – Forfeiture of RMB 395.81 million in commitment fees and deposits after failing to meet minimum raw-material procurement volumes.  – Impairment charges of RMB 288.38 million on property, plant and equipment.  – Net impairment provisions of RMB 54.09 million on receivables. • Finance costs rose 40.4% to RMB 142.26 million. • Net loss attributable to shareholders expanded to RMB 1.27 billion (2024: loss of RMB 91.03 million); basic and diluted loss per share were RMB 2.119 per share (2024: RMB 0.152).

Segment Performance Huajin International now reports two segments: 1. Steel products and processing services posted revenue of RMB 818.72 million and a segment loss of RMB 1.19 billion. 2. Terminal and port-related services contributed revenue of RMB 42.55 million with a segment loss of RMB 23.43 million.

Balance Sheet and Liquidity • The Group ended 2025 with negative equity of RMB 847.86 million, versus positive equity of RMB 423.76 million a year earlier. • Net current liabilities expanded to RMB 1.21 billion (2024: RMB 754.51 million). • Total borrowings stood at RMB 2.26 billion; the gearing ratio (total borrowings/total assets) increased to 96.8% (2024: 67.5%). • Cash and restricted deposits contracted to RMB 16.72 million (2024: RMB 214.70 million). • The auditor drew attention to a material uncertainty related to going concern; management expects continued bank-facility renewals, cost control and potential asset disposals (including a post-year-end letter of intent to sell the terminal port and ancillary assets) to support liquidity.

Capital Expenditure and Commitments • FY2025 capex totalled RMB 99.98 million, primarily for the Huajin Metal Industrial Park and the Huajin Terminal. • Outstanding capital commitments for property, plant and equipment were RMB 103.31 million at year-end.

Dividend The Board recommended no final dividend for FY2025 (FY2024: nil).

Management Focus The Group cited weak domestic demand, international trade tariffs, raw-material price volatility and low capacity utilisation as key pressures. Strategic responses include optimising core steel operations, leveraging synergies with its port assets, pursuing asset disposals to strengthen the balance sheet, and exploring diversified trading and supply-chain-finance activities.

Auditor’s Opinion KTC Partners CPA Limited issued an unmodified opinion with an emphasis of matter on the Group’s ability to continue as a going concern, referencing the significant loss and negative net assets.

Regulatory and Governance Notes Huajin International confirmed full compliance with the Hong Kong Listing Rules’ Corporate Governance Code and reported no share repurchases during the period. The Board affirmed that public float requirements remain satisfied.