Core Viewpoint - China Oriental Group (00581.HK) reported a revenue of RMB 40.413 billion for the year ending December 31, 2025, representing a year-on-year decrease of 5.9% [1] Financial Performance - Gross profit reached RMB 2.493 billion, showing a significant year-on-year increase of 40.6% [1] - Profit attributable to equity holders was RMB 225 million, reflecting a year-on-year increase of 50.9% [1] - Basic earnings per share were RMB 0.06, with a proposed final dividend of HKD 0.02 per share and a special dividend of HKD 0.05 per share [1] Industry Context - The steel industry faced continued weak demand for downstream products, leading to a decline in average selling prices of steel products [1] - Despite the challenges, net profit for 2025 increased due to several factors, including: - A decline in major raw material prices, which fell faster than the prices of steel products [1] - Ongoing implementation of lean management strategies, including cost reduction, efficiency improvement, and management optimization [1] - An annual increase in the production and sales volume of steel products, contributing to overall gross profit improvement [1] Strategic Response - The company is actively addressing macroeconomic fluctuations and deep industry adjustments through core strategies focused on innovation, green transformation, enhanced management, and promoting high-quality development [1]