Youfa Group: This year, we acquired Hebei Haiqianwei Steel Pipe and Jilin Huaming Pipe Industry, establishing a network of 10 production bases.
Recently, Youfa Group stated during an investor relations event that the company's core business focuses on welding across various product categories. Steel pipe , it has ranked first nationwide in production and sales for 19 consecutive years, with annual steel pipe output exceeding 20 million tons and net external sales surpassing 13 million tons. It proudly holds two renowned trademarks—“Youfa” and “Zhengjinyuan”—and its flagship product is hot-dip galvanized steel. Zinc The market share of round pipes exceeds 35%. Youfa products are primarily used in two major areas: fluid transportation and structural support, serving industries such as water supply, drainage, gas supply, heating systems, fire protection engineering, steel structures, construction projects, equipment manufacturing, as well as agriculture, animal husbandry, machinery, real estate, municipal infrastructure, light industry, and oil & gas transportation, among others. Moreover, Youfa's steel pipe products are widely adopted in many large-scale infrastructure and hydropower projects.
The company's primary raw materials for procurement include Strip steel , such as coiled steel plates and zinc ingots, are primarily procured through two main methods: negotiated procurement and fixed-price purchasing, complemented by a certain scale of hedging activities to mitigate risks associated with price fluctuations. Currently, product sales mainly follow a distribution model, with cash-and-carry transactions being the primary settlement method. Long-term purchase and sales agreements have been signed with key distributors. Additionally, the company is actively expanding its direct-sales model aimed at end customers, striving to provide users with a broader range of products and enhanced ancillary services. The pricing principle for the company’s products is primarily "material cost + processing fees + reasonable profit," enabling rapid inventory turnover to boost profitability and maintain a competitive edge in the market.
Currently, the company is implementing its "Three-Year Action" plan. This year, it acquired Hebei Haiqianwei Steel Pipe and Jilin Huaming Pipe Industry, bringing the total number of production bases to 10. Going forward, we will continue to adhere to the guiding principles of green development, innovative development, and high-quality growth, adopting a variety of approaches—including new construction, acquisitions, leasing, and partnerships—to optimize our domestic production layout, expand product categories and specifications, and collaboratively pursue mutual benefits and shared success with our partners. We aim to establish new production capacities in key regions such as Sichuan-Chongqing, Central China, South China, and Xinjiang.
At the same time, the company is conducting in-depth research into the welded steel pipe industries in Southeast Asia, the Middle East, Central Asia, and other regions. In line with the company’s new 10-year strategic plan and its global "Going Out" initiative, we are now laying the groundwork for overseas investment opportunities, aiming to swiftly launch our first-ever overseas project.
Based on preliminary research, markets such as Southeast Asian countries show tremendous growth potential for welded steel pipes. While these regions have previously seen exports of related products through international traders, trade alone has not been enough to fully capitalize on local market opportunities. If we can successfully establish production capacity there, it will significantly bolster the company’s expansion into overseas markets and help unlock a second growth curve.
In the first six months of 2025, the company sold 6.5477 million tons of various steel pipes, representing a year-on-year increase of 4.18%. Revenue reached RMB 24.888 billion, a year-on-year decrease of 5.81%. Net profit attributable to shareholders of the listed company amounted to RMB 287 million, up 160.36% from the same period last year. Earnings per share were RMB 0.21, reflecting a significant year-on-year increase of 162.50%.
In the future, the company will continue to adhere to the following key business strategies:
First, in line with the Group’s 10-year strategic roadmap, we will diligently implement the three-year action plan, accelerate the optimization of our domestic and international production capacity layout, and maintain steady growth in scale.
Second, while sustaining our current production and sales volume, the company will significantly increase investment in R&D for high-value-added products, actively exploring and developing new products, businesses, and innovative business models. In 2024, we established the "Youfa Institute for Hydraulic Pipeline Application Research," the "Youfa Institute for Structural Steel Manufacturing Industry Research," and the "Youfa Institute for Steel Pipe Application in the Construction Industry." These institutes will focus deeply on end-market sectors, helping us boost the proportion of our terminal business and enhance product profitability.
Third, we will further strengthen collaboration across the industry value chain, continuously driving cost reductions, improving efficiency, and enhancing profitability. This will enable us to maintain high operational efficiency through rapid capital turnover, strategic marketing transformations, and a robust focus on strengthening our terminal business—complemented by prudent hedging practices to mitigate risks from market volatility.
The company is confident that these initiatives will not only support sustained performance growth but also solidify our position as an industry leader.
