Fangda Special Steel's Q3 sees fair value surge from H-share gains

Fangda Special Steel Technology Co. Ltd. announced an unaudited fair value gain of CNY 64,191,818.85 for its transactional financial assets in the third quarter of 2025. This gain represents 25.90% of the company's 2024 net profit attributable to shareholders and is expected to significantly impact its net profit for Q3 2025.

The primary driver for this increase was the appreciation of H-share stock in Sunshine Insurance Group. The share price rose from HK$3.25 per share on June 30, 2025, to HK$3.84 per share on September 30, 2025. This H-share investment stems from a 2022 decision to use up to CNY 430 million of idle funds for wealth management, primarily through a trust investing in Sunshine Insurance Group's H-shares. The trust acquired 78,722,000 H-shares at HK$5.83 per share, totaling HK$459 million.

The company cautioned that future returns on securities investments and wealth management products remain uncertain due to stock market volatility. This fair value change will be recorded as a non-recurring gain and will not affect Fangda Special Steel's net profit after deducting non-recurring gains and losses.