Work Report of the Board of Directors of Guangdong Xianglu Tungsten Industry Co., Ltd. for 2025
In 2025, the Board of Directors of Guangdong Xianglu Tungsten Industry Co., Ltd. (hereinafter referred to as "the Company") strictly adhered to the Company Law, Securities Law, the Shenzhen Stock Exchange's Self-Regulatory Guidelines for Listed Companies No. 1—Standard Operations for Main Board Listed Companies, the Articles of Association, and other relevant laws and regulations. The Board diligently fulfilled its responsibilities entrusted by the shareholders' meeting, actively responding to the complex and changing domestic and international economic situation, overcoming difficulties, and working diligently. The operational philosophy of "Integrity and Honesty" was emphasized, focusing on maximizing corporate profits, prioritizing safety and efficiency, leveraging technological innovation, ensuring execution, and adhering to the core concepts of green development, high-quality growth, and value creation. With strong support from all shareholders and the persistent efforts of the Board and management team, the Company achieved integration of industry and capital. The following is the report on the Board's work in 2025:
I. Key Work Completion in 2025
(1) Company Operating Conditions
In 2025, the Company continued to base its operations on tungsten products while increasing research and development efforts for hard alloys and ultra-fine tungsten alloy wires, striving to enhance industry competitiveness and continuously meet customer demands.
| Project | 2025 (CNY 10,000) | 2024 (CNY 10,000) | Year-on-Year Change (%) |
|---|---|---|---|
| Operating Revenue | 240,854.79 | 174,901.82 | 37.71% |
| Operating Profit | 17,038.27 | -9,606.96 | 277.35% |
| Total Profit | 16,676.63 | -9,682.98 | 272.23% |
| Net Profit Attributable to Shareholders | 14,370.41 | -8,950.27 | 260.56% |
| Net Profit Attributable to Shareholders (Excluding Non-Recurring Gains and Losses) | 13,484.19 | -12,050.34 | 211.90% |
In 2025, the Company achieved operating revenue of CNY 240,854.79 million, an increase of 37.71% year-on-year; net profit attributable to shareholders was CNY 14,370.41 million, an increase of 260.56% compared to the previous year; and net profit attributable to shareholders (excluding non-recurring gains and losses) was CNY 13,484.19 million, an increase of 211.90% year-on-year. The main reasons for the changes in operating performance were: during the reporting period, the price of tungsten metal raw materials continued to rise throughout the year, and the supply and demand situation in the tungsten market improved compared to previous years. As a major manufacturer of tungsten products and materials in China, the Company enhanced its bargaining power for tungsten products, and the transmission of rising raw material prices to downstream products was relatively smooth, resulting in significant growth in gross profit margins and gross profits for major products. The sales order volume for hard alloys increased significantly year-on-year, the production capacity for photovoltaic tungsten wires was gradually released, and the Company strengthened cost control, improving profitability, which provided important support for performance growth. As of December 31, 2025, the Company's total assets were CNY 280,507.88 million, an increase of 36.06% compared to the end of the previous year, and the equity attributable to shareholders of the Company was CNY 120,705.64 million, an increase of 57.87% year-on-year.
(2) Board Meeting Activities
During the reporting period, the Company held six Board meetings, and the convening, proposals, attendance, discussions, voting, resolutions, and meeting records were all conducted in strict accordance with the requirements of the Company Law, Articles of Association, and Board Meeting Rules. The specific deliberation situations are as follows:
- On January 9, 2025, the Company held the first extraordinary meeting of the fifth Board of Directors for 2025, which approved the following proposals:
- (1) Review of the proposal regarding the Company and its holding subsidiaries applying for financing limits from banks and other institutions with guarantees provided by related parties.
- (2) Review of the proposal to convene the first extraordinary shareholders' meeting of 2025.