On the evening of April 28, Lone Star Technology Group Co., Ltd. (hereinafter referred to as “Lone Star Technology” or the “Company”) released its 2025 annual report.
The report shows that the company’s profit strength has shrunk significantly in 2025, and the large losses in the fourth quarter have further hindered it.
The company’s revenue in 2025 is 4.296 billion yuan, a slight decrease of 1.37% year-on-year. The net profit attributable to the parent company is 39.5667 million yuan, a year-on-year decrease of 72.81%. The decrease in non-net profit is 83.73%, and the main business profit has been significantly weakened.
Operations deteriorated significantly in the fourth quarter, with revenue declining by double digits and falling into losses in a single quarter. Multiple factors such as large asset and credit impairment provisions during the year, deepening contradictions between supply and demand in the industry, sharp fluctuations in raw material prices, and poor cost transmission squeezed profits.
Specifically, the company will achieve operating income of 4.296 billion yuan in 2025, a year-on-year decrease of 1.37%; the net profit attributable to shareholders of listed companies is 39.5667 million yuan, a year-on-year decrease of 72%.
.81%; net profit after non-recurring gains and losses attributable to shareholders of listed companies was 22.7661 million yuan, a year-on-year decrease of 83.73%; basic earnings per share was 0.0805 yuan, a year-on-year decrease of 72.96%.
The net cash flow generated from operating activities was 206 million yuan, a year-on-year increase of 453.57%.
As of the end of December 2025, the company’s total assets were 4.238 billion yuan, a decrease of 3.92% from the end of 2024; the net assets attributable to shareholders of listed companies were 1.834 billion yuan, a decrease of 0.39% from the end of 2024.
In the fourth quarter of 2025, the company’s operating income was 1.050 billion yuan, a year-on-year decrease of 14.40%; the net profit loss attributable to shareholders of listed companies was 21.43 million yuan, a year-on-year decrease of 171.50%; the net profit loss attributable to shareholders of listed companies excluding non-recurring gains and losses was 33.47 million yuan, a year-on-year decrease of 223.50%.
The company plans not to distribute cash dividends, give away bonus shares, or convert public reserve funds into share capital.
The total provision for asset impairment in 2025 is RMB 5.7627 million, including provision for credit impairment loss of RMB 2.2229 million and provision for asset impairment loss of RMB 3.5398 million.
The net profit attributable to shareholders of the listed company for the current period was reduced by 5.7627 million yuan, and the amount of owner’s equity attributable to shareholders of the listed company for the current period was reduced by 5.7627 million yuan.
During the reporting period, the company’s revenue fell slightly, but its profitability fell off a cliff. Net profit attributable to the parent company fell by more than 70% year-on-year, and the decline in non-net profits further expanded, reflecting that the profitability foundation of the main business has significantly weakened, and the meager contribution of non-recurring gains and losses to profits has been unable to offset the collapse of main business profits.
The single-quarter performance in the fourth quarter turned from a profit to a loss, with revenue declining by double digits year-on-year, and a significant loss on the profit side, which became the direct cause of the sharp drop in profits for the whole year.
The company mentioned in its 2025 annual report that under the conditions that the growth rate of traditional carbon black demand is limited and high-end carbon black products still need to rely on imports, the structured supply and demand contradiction in the domestic carbon black industry has gradually deepened.
In addition, the price of upstream raw material oil has been affected by the production capacity policies of the coking and steel industries, which have fluctuated violently throughout the year. The cost transmission mechanism has failed, and the profits of the carbon black industry have been further squeezed, and the industry is facing severe challenges.
At the same time, competition in the high-end carbon black field is gradually intensifying. The company’s core customer groups are concentrated in large domestic and foreign tire companies. Affected by the spillover effect of low-price competition in the market, there is a risk of customer loss.
The company’s products are mainly used in carbon black for rubber, especially carbon black for tires. The company’s operating income mainly relies on the production and sales of carbon black products.
With the structural supply and demand imbalance in the carbon black market in 2025, the growth rate of the downstream automobile tire industry has slowed down, and the overall carbon black industry is under pressure. In addition, the upgrading of the green tire industry has increased demand for high-end carbon black. If the company cannot adapt to changes in downstream demand in a timely manner, it may lead to a decline in operating performance.
In terms of raw materials, coal tar, anthracene oil, and ethylene tar, the main raw materials of carbon black, still account for more than 80% of production costs. In 2025, affected by factors such as domestic steel and coking industry policy adjustments, international crude oil price fluctuations, and changes in upstream and downstream supply and demand relationships, the prices of the above raw oils will fluctuate significantly.
Moreover, there is a certain lag in the transmission of carbon black prices to raw material prices. If the risk of raw material price fluctuations cannot be smoothly transferred to the downstream of the industrial chain, it will have an impact on the company’s performance.
In addition, the company completed the equity acquisition of China Rubber (Chongqing) Carbon Black Co., Ltd. during the reporting period, further improving its industrial layout in the southwest region.
In terms of production operations, the company’s carbon black production in 2025 will reach 668,700 tons, with a capacity utilization rate of 103.67%.
At the same time, the company actively responds to the national “dual carbon” policy, continues to promote green and low-carbon transformation, and implements energy-saving upgrade projects for carbon black tail gas waste heat power generation units to improve energy recycling efficiency.
The company stated that it will continue to increase investment in research and development and improve product quality and technical level in the future to respond to market changes and needs.
