Da Ming Int’l (01090) reported a turnaround for the year ended 31 December 2025, posting net profit of RMB 12.24 million versus a RMB 385.14 million loss in 2024. The swing back to profitability stemmed from a 54.7% jump in gross profit to RMB 1.06 billion, which offset a 4.9% decline in revenue to RMB 44.19 billion.

Revenue and margins • Revenue slipped by 4.9% year on year as metal prices softened, yet gross margin widened to 2.40% from 1.48% on tighter cost controls across raw materials, labour and logistics. • Processing of metal materials remained the core driver, contributing RMB 41.52 billion (94.0% of total), followed by components manufacturing at RMB 1.49 billion and high-end equipment manufacturing at RMB 1.18 billion.

Segment performance • Processing volumes rose: stainless steel sales climbed 2.3% to 2.10 million tonnes and carbon steel sales edged up 0.8% to 5.10 million tonnes. • Processing multiples held steady for stainless steel (1.55x) and improved for carbon steel (0.98x vs 0.95x), reflecting higher downstream value-added activity.

Geographic and industry mix • The Eastern region of China remained dominant, generating 67.8% of revenue. Overseas sales accounted for 2.9%. • Trading (28.9%), specialised machineries (14.7%) and hardware decoration (15.7%) were the three largest industry contributors.

Cost and expense dynamics • Distribution costs fell 2.5% to RMB 493.58 million, while administrative expenses shrank 15.0% to RMB 357.90 million, aided by workforce optimisation. • Net finance costs declined 12.3% to RMB 212.22 million on lower borrowing expenses.

Cash flow and liquidity • Operating activities generated RMB 526.81 million (up 19.9%). • Capital expenditure moderated to RMB 224.70 million, down 35.6%. • Cash and cash equivalents stood at RMB 109.18 million; restricted deposits were RMB 1.31 billion. • The group recorded net current liabilities of RMB 1.33 billion; gearing ratio eased slightly to 70.22% (2024: 71.42%). Management cited ongoing refinancing, inventory control and cost measures to address liquidity pressure.

Balance sheet highlights • Total assets declined 4.2% to RMB 12.43 billion, primarily due to lower inventories and property, plant and equipment. • Total borrowings slipped to RMB 6.81 billion, with RMB 5.40 billion maturing within a year.

Earnings per share • Basic and diluted losses per share narrowed to RMB 0.03 from RMB 0.33.

Dividend • The board proposed no final dividend, prioritising capital retention for operations and growth initiatives.

Outlook initiatives • Management plans further automation, digital upgrades and overseas network expansion, while strengthening alliances with steel producers and key customers to support sustained growth across stainless and carbon steel deep-processing, components and high-end manufacturing.