Fangsheng Co., Ltd.: The company's unaudited net profit attributable to shareholders of the listed company in 2025 decreased by 34.69% compared to the previous year.

Securities Daily Online, March 9 — Fangsheng Co., Ltd. stated during a survey that the company’s unaudited net profit attributable to shareholders of the listed company for 2025 is expected to decrease by 34.69% compared to the previous year. The main reasons are as follows: (1) The company’s gross profit margin has declined compared to the same period last year. Domestic sales faced market competition pressure, with significant revenue growth in the wind power sector, which has a lower gross profit margin. Meanwhile, demand from overseas existing customers with higher margins has decreased, leading to a decline in export revenue. (2) Throughout 2025, the average market price of aluminum ingots on the procurement side has steadily increased, but some customers’ sales prices could not be effectively passed on, resulting in a lower gross profit margin. (3) As the construction and trial production preparations for the fundraising projects are completed, depreciation, amortization, and labor costs have all increased accordingly. (4) During this period, some domestic customers entered litigation due to unsatisfactory payment recovery, and provisions for bad debts were made for some outstanding receivables, leading to a significant increase in credit impairment losses compared to last year.

(Edited by Ren Shibi)