Xianglu Tungsten Industry's net profit in 2025 is expected to increase by 260.56% year-on-year, with the capacity for tungsten wire used in photovoltaics gradually being released.

On the evening of March 31, Luoyang Tungsten Industry (002842) disclosed its 2025 annual report. For 2025, the company achieved operating revenue of RMB 2.409 billion, up 37.71%; net profit attributable to shareholders was RMB 144 million, compared with a net loss of RMB 89.5027 million in the same period of the prior year, representing an increase of 260.56%; basic earnings per share were RMB 0.46. The company plans to distribute cash dividends of RMB 1.38 per 10 shares (including tax).

Regarding the growth in performance, Luoyang Tungsten Industry said that during the reporting period, the prices of tungsten metal raw materials rose throughout the year, and the tungsten market’s supply-demand situation improved compared with prior years. As one of the major tungsten product and tungsten material manufacturers in China, the company enhanced its pricing power for tungsten products; the pass-through of rising raw material prices to downstream products was relatively smooth. As a result, the gross margin and gross profit of the company’s main products increased significantly. Sales order volume for cemented carbide increased markedly year over year. Meanwhile, capacity for photovoltaic tungsten wires was gradually released. In addition, the company strengthened cost control and improved its profitability. Revenue and gross profit contributions increased year over year, providing important support for the growth in performance.

Luoyang Tungsten Industry is one of the companies in China’s tungsten industry with a complete industrial chain. Its business scope includes the production of the full range of tungsten products such as tungsten concentrate mining and processing, ammonium paratungstate smelting, tungsten oxide, tungsten powder, tungsten carbide powder, cemented carbides, tungsten wires, and more. According to the annual report disclosure of Luoyang Tungsten Industry, during the reporting period, the company’s output and sales volume of cemented carbides both increased, rising year over year by 84.67% and 70.78%, respectively. The company will continue to increase R&D efforts for cemented carbide products, optimize sintering processes, eliminate certain outdated and backward production equipment, and improve production efficiency.

For tungsten carbide powder, affected by international developments, production and sales declined slightly, decreasing year over year by 11.66% and 21.07%, respectively. Luoyang Tungsten Industry said that the company will continuously optimize and upgrade equipment, adopt intelligent control modes, reduce labor costs, improve the degree of automated operation of equipment, and enhance product quality, thereby increasing production and sales volume.

With respect to the ultrafine tungsten wire project, Luoyang Tungsten Industry mentioned in its annual report that the trend toward large-sized photovoltaic silicon wafers and thinner wafers is becoming even more pronounced. By reducing the thickness of silicon wafers, material can be saved without changing the area, thereby lowering the cost of silicon wafers. The line-thinning trend accelerates and expands demand for tungsten wires in the “busbar” of diamond wire. Tungsten wires have high tensile strength; under the same breaking force, the wire diameter can be smaller, and the potential for line thinning is greater. Luoyang Tungsten Industry said that in the future, the penetration rate of tungsten wire is expected to rise rapidly. As photovoltaic economics gradually becomes more prominent, the global photovoltaic installation market will remain robust, and diamond wire consumption will increase as wire diameter decreases and silicon wafers become thinner.

During the reporting period, Luoyang Tungsten Industry carried out R&D and expansion toward the direction of photovoltaic ultrafine tungsten wires, targeting changes in application-side markets for tungsten products that have emerged in recent years. The ultrafine tungsten wire lines径 produced and developed by the company have a diameter of 22–27μm. After being submitted and verified with samples, they have already met downstream customers’ needs. By the end of this reporting period, the Chaozhou Fengquanhu plant area has production capacity of 500 million meters per month, and the company is fully pushing forward the construction project for an annual output of 30 billion meters of ultrafine tungsten wire lines. In 2025, the company’s tungsten wire production and sales volume increased by 75.06% and 217.48%, respectively, compared with the same period.

Luoyang Tungsten Industry further pointed out that during the reporting period, the company stayed focused on its manufacturing core business. Through lean production, cost control, optimization of product structure, and expansion of market channels, its profitability and overall operating quality improved significantly. Looking ahead to 2026, the company will make sustained improvement in profitability the core focus, seize opportunities arising from industry recovery, deepen technological innovation and intelligent transformation, optimize capacity layout and supply-chain coordination, continue to expand high-quality customers and high-end markets, and consolidate the favorable trend in profitability.

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