Xinyye Shares' net profit in 2025 is expected to grow by over 36% year-on-year, but operating cash flow is down nearly 62% year-on-year. Revenue is projected to increase by 0.15% in 2026.

Ask AI · Does the decline in cash flow of Yunnan Tin Company affect its transformation into a technology metal?

Reporter: Cai Ding Editor: Huang Sheng

Yunnan Tin Company (SZ000960, stock price 32.50 yuan, market value 53.477 billion yuan) disclosed its 2025 annual report on the evening of March 29, showing that the company achieved revenue of 43.535 billion yuan in 2025, a year-on-year increase of 3.72%; net profit attributable to shareholders of the listed company was 1.966 billion yuan, a year-on-year increase of 36.14%; non-net profit was approximately 2.418 billion yuan, a year-on-year increase of 24.48%; basic earnings per share was 1.1561 yuan. The company plans to distribute 2.5 yuan in cash for every 10 shares, without issuing bonus shares.

Image source: Yunnan Tin Company annual report

Although net profit recorded growth, the reporter from “Daily Economic News” (hereinafter referred to as “the reporter”) noticed that due to a significant increase in futures margin payments and raw material prepayments, the net cash flow from operating activities of Yunnan Tin Company decreased by 61.95% year-on-year to 1.295 billion yuan during the reporting period.

Net profit below expectations, domestic and global market share further increased

Vertically, this is the first increase in revenue for Yunnan Tin Company after three consecutive years of decline (2022-2024). Additionally, the net profit attributable to shareholders of 1.966 billion yuan is the highest annual figure since 2021. Nevertheless, according to data compiled by Wind Financial Terminal, the consensus forecast for the net profit attributable to shareholders of Yunnan Tin Company in 2025 from nine institutions is approximately 2.409 billion yuan, thus the disclosed figure of 1.966 billion yuan is below expectations. The disclosed value is 18.37% lower than the consensus forecast.

Image source: Wind

Image source: Wind

In the current environment where regulatory authorities highly value “market value management,” Yunnan Tin Company plans to distribute a year-end cash dividend of 411 million yuan for 2025. Combined with the 181 million yuan already distributed in the first three quarters, the total annual dividend reaches 592 million yuan, accounting for 30.13% of the net profit attributable to shareholders, with total dividends over the past three years approaching 1.5 billion yuan. At the same time, the company repurchased 370,000 shares using its own funds, which have been canceled, reducing registered capital.

The annual report shows that Yunnan Tin Company maintains its position as the world’s largest tin producer and seller, accounting for the largest share of the global tin market.

Moreover, based on its own production and sales data and relevant data released by industry associations, Yunnan Tin Company estimates that its domestic market share will rise to 53.35% in 2025, an increase of 5.37 percentage points from 2024, while its global market share is 27.16%, up 2.13 percentage points from 2024. In addition to tin, Yunnan Tin Company holds the world’s largest indium resource reserves in the Dulong mining area (native indium accounts for nearly 29% of the domestic total).

Although there are concerns about cyclical fluctuations in the secondary market, the annual report of Yunnan Tin Company reveals a new growth engine for tin demand—explosive growth in emerging fields such as new energy vehicles, photovoltaics, AI computing power, and grid upgrades, which have become the core driving force of demand growth. The company states that with the global semiconductor cycle on the rise and the increase in intelligence rates, the “green, low-melting point, and good conductivity” characteristics of tin are accelerating its transformation from traditional industrial metal to “strategic technology metal.”

Expected revenue growth of 0.15% in 2026

The annual report shows that the net cash flow generated from operating activities during the reporting period decreased by 61.95% year-on-year to 1.295 billion yuan. The company states, “The main reason is the increase in futures margin and raw material prepayments compared to the previous period.”

At the same time, the net cash flow from investing activities decreased by 150.92% compared to the previous year, mainly due to the receipt of funds from the reduction of equity in certain new material companies in the previous period and the new investments in the tin-indium laboratory in the current period. The simultaneous decline in operating cash flow and investment cash flow led to a 94.92% decrease in the net increase in cash and cash equivalents at the end of the period compared to the previous year.

Image source: Yunnan Tin Company annual report

Regarding the significant difference between the net cash flow from operating activities and the net profit during the reporting period, Yunnan Tin Company further explains that this is “mainly due to non-cash gains and losses such as asset amortization and scrapping, changes in operating receivables and payables, inventory changes, and other adjusting items.”

The reporter noticed that Yunnan Tin Company made notable adjustments to its debt structure during the reporting period. Long-term loans decreased by 57.45% to 2.473 billion yuan at the end of the period, while short-term loans increased by 266.7% year-on-year to 4.4 billion yuan. This is directly reflected in a significant reduction in the company’s financial expenses to 206 million yuan, a year-on-year decrease of 29.53%.

In the annual report, Yunnan Tin Company clearly stated its main work goals for 2026: it expects revenue of 43.6 billion yuan, which is an estimated increase of approximately 0.15% compared to the 43.535 billion yuan in 2025. The report also disclosed that the company plans to produce 90,000 tons of tin this year (compared to 91,200 tons in 2025), 125,000 tons of copper, 135,000 tons of zinc, and 91.6 tons of indium ingots (compared to 106 tons in 2025).

However, the company added, “This plan is a guiding indicator, and the final results are subject to uncertainties influenced by various internal and external environments, operational management, and other factors, thus it does not constitute a substantive commitment to operating revenue and the output of various products.”

Daily Economic News