Huijin Tong: Participated in institutional research on April 3, with investor involvement

Securities Star News. On April 7, 2026, Huijin Tong (603577) released an announcement stating that the company received an institutional research visit on April 3, 2026.

The specific content is as follows:

Q: Please describe the company’s export business development in recent years.

A: In the past three years, the company’s export (external sales) revenue was 181 million yuan, 103 million yuan, and 104 million yuan, respectively, accounting for 4.66%, 2.38%, and 2.64% of the main business revenue, respectively.

Q: This year’s dividend distribution level is not high. It is suggested that the company increase the strength of dividend distribution.

A: For 2025, the company plans to distribute cash dividends to all shareholders at a rate of 0.608 yuan per 10 shares (including tax), based on the company’s total share capital registered as of the equity distribution record date for the implementation of the equity distribution. Based on the company’s total share capital of 339,139,100 shares as of December 31, 2025, the total cash dividends proposed to be distributed are 20,619,657.28 yuan (including tax), accounting for 20% of the net profit attributable to shareholders of the listed company in the company’s 2025 annual consolidated financial statements. The implementation of this 2025 annual profit distribution plan is subject to approval by the company’s shareholders’ meeting. Investors are kindly requested to pay close attention and take note of investment risks. The cash dividend distribution level for 2025 is lower than 30%, mainly due to the following reasons:

(1) In recent years, the company has focused on its main business and, through strategic measures that combine external-extension mergers and acquisitions with endogenous growth, has promoted the implementation of the company’s nationwide strategic layout. During the industry’s earnings trough, the company completed regional deployment and capacity reserves, and the company has entered a period of rapid growth. The company’s rapid growth in scale, together with the industry characteristics in which downstream sales receipts have a relatively longer payment cycle while upstream procurement payments have a relatively shorter payment cycle, has resulted in significant pressure on the company’s demand for operating cash. The company’s asset-liability ratio was 67.54% in 2025, and the company’s net profit attributable to shareholders of the listed company decreased by 33.39% year-on-year. Taking into account the company’s long-term development and the realities of its short-term operations, and coordinating the company’s short- and medium-term funding needs with its current liability position, in order to ensure the company’s continued and steady development and better safeguard the long-term interests of all shareholders, the company has determined that the total amount of cash dividends for 2025 will account for 20% of the net profit attributable to shareholders of the listed company in the company’s current-year annual consolidated financial statements.

(2) Based on the current situation of the industry and the company’s stage of development, together with factors including the company’s profitability in 2025 and its future capital needs, in order to promote the implementation of various operating plans, and to ensure the company’s ongoing, stable, and healthy development, the company’s retained undistributed profits will be used for the capital required for the company’s operations according to the development strategy and annual work plan. This is beneficial for ensuring that the company has reasonable funding for business development and is consistent with the long-term interests of the company and its shareholders.

(3) The company strictly provides various conveniences, in accordance with the relevant provisions of the China Securities Regulatory Commission, to enable small and medium shareholders to participate in decision-making related to cash dividend distribution. Before the shareholders’ meeting, the company will communicate and exchange with shareholders, especially small and medium shareholders, through multiple channels (including but not limited to investor hotlines, emails, interactive platforms, etc.), fully soliciting opinions and suggestions from shareholders regarding this profit distribution plan. At the time of convening the shareholders’ meeting, online voting and on-site voting will be provided, and the voting results of small and medium shareholders will be counted separately, fully protecting the lawful rights and interests of small and medium shareholders.

The company has always attached great importance to returning value to shareholders through cash dividends. Under the premise that the company complies with laws and regulations and the cash dividend conditions stipulated in the company’s articles of association, and after comprehensively considering various factors related to profit distribution, the company, from the perspective of what is beneficial for the company’s development and shareholders’ returns, will share the company’s development achievements with shareholders.

Q: What is the order intake situation in Q1 2026? Will it provide positive support for Q1 performance? Since steel prices fluctuate significantly, how does the company ensure that its gross profit margin remains stable? Has the gross profit margin improved quarter-on-quarter in Q1?

A: For the company’s performance in Q1 2026, please refer to the company’s Q1 2026 report to be disclosed on April 30, 2026.

Q: In 2026, ultra-high-voltage projects will be bid in a concentrated manner. Can the company’s annual winning scale and market share increase significantly?

A: The company will closely track the bidding dynamics of ultra-high-voltage projects, actively participate in market competition, and enhance market expansion efforts by strengthening market focus, optimizing order structure, and improving service quality, among other measures. The company strives to increase its winning scale and market share, and the relevant operating information will be subject to the company’s announcements.

Q: Does the company have a share repurchase plan? Does the controlling shareholder have a shareholding increase plan?

A: The company currently has no plan to purchase shares, nor has it received any notice from the controlling shareholder regarding an increase in the company’s shareholdings.

Q: Please introduce the company’s performance in 2025.

A: In 2025, the company achieved operating revenue of 418,236.94 million yuan, a decrease of 9.44% compared with the same period last year; net profit attributable to shareholders of the listed company was 10,304.10 million yuan, a decrease of 33.39% compared with the same period last year; and net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was 8,241.60 million yuan. The main reasons are as follows:

(1) During the reporting period, the sales quantity of the company’s main products decreased by 6.09% compared with the same period last year, and the average selling price decreased by 6.96%, resulting in operating revenue for this period decreasing by 9.44% compared with the same period last year. In terms of volume, angle steel tower sales were 499,000 tons, down 4.43% year-on-year; steel pipe tower sales were 475,000 tons, down 31.96% year-on-year; and other steel structures and contact wire support frame sales were 453,000 tons, up 30.56% year-on-year. In terms of pricing, the selling price of angle steel towers decreased by 7.22% compared with the same period last year; the selling price of steel pipe towers decreased by 6.03%; and the selling price of other steel structures and contact wire support frames decreased by 2.74%.

(2) During the reporting period, the decline in the selling prices of the company’s main products was greater than the decline in raw materials. Sales prices decreased by 6.96% year-on-year, while unit costs decreased by 6.69% year-on-year, resulting in the company’s gross profit margin for its main business decreasing by 0.61 percentage points compared with the same period last year.

(3) Other income for this period was 33,353.63 million yuan, down 22.88% from the prior period, mainly because the gain obtained from additional input VAT credit offsets decreased compared with the prior period.

(4) Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was 8,241.60 million yuan, mainly because the company, to revitalize assets, obtained a gain of 926.08 million yuan from the sale of idle factory premises during this period.

Q: What is the current number of shareholders of the company?

A: As of March 31, 2026, the company’s total number of shareholders was 18,796.

Huijin Tong (603577) principal business: research and development, production, and sales of equipment such as transmission line towers, fasteners, communication towers, and photovoltaic supports, as well as power project general contracting, inspection and testing services, and other related services.

Huijin Tong’s 2025 annual report shows that, for the year, the company’s main operating revenue was 4.182 billion yuan, a year-on-year decline of 9.44%; net profit attributable to the parent company was 103 million yuan, a year-on-year decline of 33.39%; and net profit after deducting non-recurring items was 82.416 million yuan, a year-on-year decline of 39.14%. Of this, in Q4 2025, the company’s single-quarter main operating revenue was 1.28 billion yuan, a year-on-year decline of 7.42%; the single-quarter net profit attributable to the parent company was 20.7654 million yuan, a year-on-year decline of 58.32%; and the single-quarter net profit after deducting non-recurring items was 18.3971 million yuan, a year-on-year decline of 60.29%. The company’s liability ratio was 67.54%, investment income was -47.68 million yuan, finance expenses were 97.9014 million yuan, and gross profit margin was 13.35%.

The above content has been compiled from public information by Securities Star and generated by an AI algorithm (Network Information Filing Record No. 310104345710301240019), and does not constitute investment advice.