FUYAO GLASS's net profit in 2025 is expected to increase by 24%, reaching a record high, as the wave of automotive intelligence brings growth opportunities | Financial Report Insights

The world's largest automotive glass manufacturer, FUYAO GLASS, showcases its ability to navigate through cycles with an impressive annual performance report amidst trade frictions and uncertainties in the automotive industry. While both revenue and profit reached historic highs, the company announced a year-end cash dividend, with a total annual dividend amount exceeding 5.48 billion yuan.

Core data is as follows:

FUYAO GLASS's consolidated operating revenue for 2025 reached 45.787 billion yuan, a year-on-year increase of 16.65%;

The net profit attributable to shareholders of the listed company was 9.312 billion yuan, a year-on-year increase of 24.20%;

The net cash flow generated from operating activities reached 12.055 billion yuan, a significant year-on-year increase of 40.79%.

The gross profit margin further improved to 37.27%, and the weighted average return on net assets rose to 25.56%, an increase of 2.84 percentage points compared to the previous year.

The company plans to distribute a year-end cash dividend of 1.20 yuan per share (tax included) for the fiscal year 2025 to shareholders. Combined with the previously implemented mid-year dividend of 0.90 yuan per share for 2025, the total annual dividend per share amounts to 2.10 yuan, with a total annual cash dividend of 5.48 billion yuan, resulting in a dividend payout ratio of 58.85% of net profit attributable to the parent company, maintaining a high return ratio for consecutive years.

Record High Revenue and Profit, Continuous Improvement in Profit Quality

In 2025, FUYAO GLASS achieved operating revenue of 45.787 billion yuan, an increase of 16.65% compared to the previous year's 39.252 billion yuan, particularly notable against the backdrop of overall sluggish growth in the global automotive industry. The total profit amounted to 11.162 billion yuan, a year-on-year increase of 24.15%, with net profit growth significantly outpacing revenue, indicating a dual drive of scale expansion and profit improvement.

By product, automotive glass remains the core pillar, achieving revenue of 41.889 billion yuan in 2025, a year-on-year increase of 17.30%, accounting for approximately 93% of main business revenue. The gross profit margin was 31.32%, an increase of 1.17 percentage points year-on-year.

The company pointed out that the continuous increase in the proportion of high value-added products is an important factor driving profit improvement—high-end products such as smart panoramic sunroof glass, adjustable light glass, and head-up display glass accounted for an increase of 5.44 percentage points compared to the same period last year.

The float glass segment generated revenue of 6.480 billion yuan, a year-on-year increase of 8.71%, with the gross profit margin increasing by 3.60 percentage points to 39.64%.

By region, domestic revenue was 24.241 billion yuan, a year-on-year increase of 14.58%; overseas revenue was 20.857 billion yuan, a year-on-year increase of 18.81%, with steady expansion observed both domestically and internationally The scale of overseas assets reached 25.327 billion yuan, accounting for 36.15% of total assets. Among them, the revenue of the U.S. subsidiary in 2025 is equivalent to 7.917 billion yuan, with a net profit equivalent to 884 million yuan.

On the expense side, R&D expenses increased to 1.913 billion yuan, a year-on-year growth of 14.03%, accounting for 4.18% of operating income, with R&D personnel reaching 6,338. Financial expenses benefited from an exchange gain of 298 million yuan this period (compared to an exchange loss of 24 million yuan in the same period last year), contributing positively to net profit.

Abundant Cash Flow, Continuous Capacity Expansion

In 2025, the net cash flow generated from operating activities of FUYAO GLASS reached 12.055 billion yuan, an increase of 40.79% compared to last year's 8.562 billion yuan, significantly enhancing cash generation capability. The ending balance of cash and cash equivalents was 19.241 billion yuan, a slight increase from the beginning of the year.

In terms of capital expenditure, the cash paid for the purchase and construction of fixed assets, intangible assets, and other long-term assets for the year was 6.164 billion yuan, primarily invested in Anhui supporting automotive glass, Anhui parts automotive glass, and Anhui float glass projects (approximately 1.799 billion yuan in total), Fujian supporting glass projects (approximately 1.132 billion yuan), and U.S. automotive glass projects (approximately 983 million yuan), among others.

During the reporting period, key projects in Hefei, Fuzhou, Benxi float glass, and Hungary were successively put into production, resulting in a leap in the company's capacity scale.

From the balance sheet perspective, as of December 31, 2025, the company's total assets were 70.062 billion yuan, an increase of 10.76% compared to the beginning of the year; the net assets attributable to shareholders of the parent company were 37.556 billion yuan, a year-on-year growth of 5.22%. The asset-liability ratio was 46.40%, a slight increase from the previous year. Net debt was negative, indicating the company is in a net cash position.

Industry Landscape and 2026 Outlook: The Wave of Intelligence Brings Structural Opportunities

From the industry background, according to statistics from the China Association of Automobile Manufacturers, in 2025, China's automobile production and sales reached 34.531 million and 34.4 million units, respectively, with year-on-year growth of 10.4% and 9.4%, setting new records. China has maintained its position as the world's largest automobile producer and seller for seventeen consecutive years.

The new four trends of "electrification, connectivity, intelligence, and sharing" in the automotive industry are accelerating, with more new technologies integrated into automotive glass, leading to sustained strong demand for high value-added products.

The company has made corresponding deployments at the strategic level. It will comprehensively promote digital and intelligent transformation, aiming to build a "Digital FUYAO"; at the same time, it will establish a dual-track talent system of "business experts + AI application experts," deeply integrating AI technology into core processes such as R&D design and production management.

The company disclosed that the total funding requirement for 2026 is expected to be approximately 49.862 billion yuan, including operating expenses of 39 billion yuan and capital expenditures of 7.730 billion yuan. The planned new projects for aluminum parts, decorative parts, and others will continue to advance.

The company also pointed out that the complex global economic and political situation, uncertainty in trade policies, exchange rate fluctuations, and the accelerated pace of technological changes in the automotive industry remain the main risk factors faced by the company

High Dividends Reflect Shareholder Return Confidence, Over 5.4 Billion Yuan Distributed in Annual Dividends

In terms of profit distribution, the company implemented two dividend distributions for the fiscal year 2025.

For the interim dividend, the distribution of interim dividends for A-shares and H-shares was completed in October and November 2025, respectively, with a distribution of 0.90 yuan per share (tax included), totaling 2.349 billion yuan. For the year-end dividend, the board proposed a distribution of 1.20 yuan per share (tax included) to all shareholders, totaling approximately 3.132 billion yuan, expected to be completed by June 15, 2026, at the latest.

Combined, the total cash dividend for the fiscal year 2025 amounts to 5.48 billion yuan (tax included), accounting for 58.85% of the net profit attributable to the parent company, significantly higher than the 20% lower limit stipulated in the company's articles of association, continuing the company's consistent practice of high dividend payouts in recent years.

In addition, the company also disclosed that the cumulative cash dividends over the past three years (2023-2025) totaled approximately 13.571 billion yuan, with an average annual net profit of about 7.480 billion yuan, resulting in a cumulative dividend payout ratio of 181.43%