XINGYE ALLOY (00505) announced its annual results for the period ended December 31, 2025. Revenue reached RMB 9.259 billion, representing a year-on-year increase of 15.0%. However, profit attributable to equity shareholders was RMB 132.6 million, a decrease of 45% compared to the previous year. Basic earnings per share were RMB 0.15.

The primary reasons for the decline in profit during the period were as follows: (1) The company uses copper futures contracts to hedge against copper price fluctuations. Due to the rapid and substantial rise in copper prices during the fourth quarter of 2025, the company incurred significant losses on these hedging instruments. (2) Increased labor costs resulting from the hiring of new employees and salary adjustments. (3) Higher depreciation costs associated with the acquisition of new equipment and other infrastructure. (4) A reduction in gross profit margins from overseas sales, following the Chinese government's cancellation of export tax rebates for certain copper product categories.