China Oriental Group Company (581) H1 2025 earnings summary

Executive summary

• Revenue for the first half of 2025 was RMB19.86 billion, down 12% year-over-year, mainly due to a 14.5% drop in average steel selling prices amid weak downstream demand, despite a 6.5% increase in sales volume.

• Net profit surged 97.5% year-over-year to RMB243 million, driven by lower raw material costs and effective lean management.

• Gross profit increased 45.9% to RMB938 million, with gross margin rising to 7.8% from 4.9% a year earlier.

• EBITDA rose to RMB1,065 million from RMB815 million year-over-year, with margin improving to 5.4% from 3.6%.

• No interim dividend was declared for H1 2025.

Financial highlights

• Total sales volume of self-manufactured steel products increased 6.5% year-over-year to 4.01 million tonnes.

• Revenue from self-manufactured steel products fell 9% to RMB12,008 million, mainly due to lower prices.

• Gross profit per tonne of steel rose 36.8% year-over-year to RMB234.

• Adjusted profit for the period (excluding non-recurring items and real estate impairments) was RMB386 million, up 213.4%.

• Basic EPS was RMB0.05, up from RMB0.03 in the prior year period.

Outlook and guidance

• Management expects gradual improvement in steel demand and prices in the second half of 2025, with continued policy support and infrastructure investment in China.

• Ongoing focus on green, low-carbon, and high-value-added product development, digital transformation, and business diversification.

• Ongoing projects include the NEMM joint venture with ArcelorMittal and further investments in green energy and digital factories.