CHINA ORIENTAL GROUP (00581) has announced an expected net profit for the 2025 fiscal year of approximately RMB 270 million to RMB 315 million, representing a year-on-year increase of about 20% to 40%. Despite continued weak demand for downstream steel products leading to a persistent decline in the average selling price of steel products, the anticipated growth in the Group's net profit for the relevant year is primarily attributable to the combined effect of the following factors. These include (i) a drop in the prices of key raw materials, whose downward trend has been faster than the decline in steel product prices; (ii) the Group's ongoing comprehensive promotion of its lean management strategy, encompassing cost reduction, efficiency improvements, management optimization, and technological upgrades; and (iii) a year-on-year recovery in the production and sales volume of steel products. These factors have collectively driven an overall improvement in the gross profit margin of steel products.