Lingang Steel Co., Ltd. (600231) 2025 Annual Report Brief Analysis: Narrowing Losses, Short-term Debt Pressure Rising

According to data publicly compiled by Securities Star, Linggang Co., Ltd. (600231) recently released its 2025 annual report. As of the end of this reporting period, the company’s total operating revenue was RMB 15.661 billion, down 13.46% year over year; its net profit attributable to shareholders was negative RMB 1.557 billion, up 7.22% year over year. By single-quarter data, in the fourth quarter, total operating revenue was RMB 3.902 billion, down 7.38% year over year; fourth-quarter net profit attributable to shareholders was negative RMB 714 million, down 126.46% year over year. During this reporting period, Linggang Co., Ltd.’s short-term debt pressure increased, and the current ratio reached 0.37.

This figure is below most analysts’ expectations. Previously, analysts generally expected the company’s net profit in 2025 to be a loss of around RMB 580 million.

The various data indicators disclosed in this financial report show average performance. Among them, gross margin was -5.96%, up 0.41% year over year; net profit margin was -9.94%, down 7.21% year over year. Selling expenses, administrative expenses, and financial expenses totaled RMB 479 million. The three-fee ratio to revenue was 3.06%, up 11.34% year over year. Net assets per share were RMB 1.41, down 29.16% year over year. Operating cash flow per share was negative RMB 0.06, up 83.21% year over year. Earnings per share were negative RMB 0.56, up 5.08% year over year

The Securities Star stock valuation and investor circle financial report analysis tool shows:

• Business assessment: Last year’s net profit margin was -9.94%. After accounting for all costs, the added value of the company’s products or services is not high. According to statistics from historical annual report data, over the past 10 years the company’s median ROIC was 3.51%, indicating relatively weak investment returns. The worst year was 2024, when ROIC was -17.15%, representing extremely poor investment returns. The company’s historical financial reports have been very ordinary. Since its listing, it has published 25 annual reports, with 5 loss years. Unless factors such as a backdoor listing exist, value investors generally do not look at such companies.

• Business model: The company’s performance mainly relies on capital expenditure, so it is also necessary to focus on whether the company’s capital expenditure projects are worthwhile and whether capital spending is rigid in the face of funding pressure. The actual situation behind these driving forces needs to be studied carefully.

• Business breakdown: Over the past three years (2023/2024/2025), the company’s net operating asset return on net operating assets was --/–/–, and its net operating profits were -RMB 681 million/-RMB 1,678 million/-RMB 1.557 billion, while its net operating assets were RMB 6.907 billion/6.7 billion/5.7 billion.

  Over the past three years (2023/2024/2025), the company’s working capital / revenue (i.e., during production and operation, the amount of capital the company needs to advance for every one yuan of revenue generated) was -0.16/-0.16/-0.25. Among this, working capital (the company’s own money used in production and operations) was negative RMB 3.191 billion/negative RMB 2.983 billion/negative RMB 3.894 billion. Revenues were RMB 20.321 billion/18.097 billion/15.661 billion.

The Financial Report Health Check tool shows:

1. Suggest paying attention to the company’s cash flow position (cash and cash equivalents / current liabilities is only 16.06%, and the 3-year average operating cash flow / current liabilities is only 2.65%).
2. Suggest paying attention to the company’s debt situation (the interest-bearing asset-liability ratio has reached 28.91%; the total interest-bearing liabilities / the 3-year average operating cash flow has reached 23.41%; and the current ratio is only 0.37).

The above content has been compiled by Securities Star based on publicly available information and generated by an AI algorithm (Record No. 310104345710301240019). It does not constitute investment advice.