China Oriental Group Company (581) H1 2026 earnings summary

Executive summary

• Revenue for H1 2026 was RMB18.22 billion, down 8.3% year-over-year, mainly due to subdued steel demand and lower sales volumes.

• Net profit rose 3.2% to RMB251 million, supported by cost controls, reduced provisions, and JV profit contributions.

• EBITDA decreased to RMB1.01 billion from RMB1.07 billion year-over-year.

• Basic EPS increased to RMB0.06 from RMB0.05 in H1 2025.

• No interim dividend was declared for H1 2026.

Financial highlights

• Gross profit fell to RMB785 million (down 16.3%) or RMB948 million (down 23.7%), with gross margin declining to 6.6% from 7.8%.

• Adjusted profit (excluding non-recurring items and impairments) was RMB322 million, down from RMB386 million year-over-year.

• Sales volume of self-manufactured steel products was 3.96 million tonnes, down 1.0% year-over-year.

• Average selling price per tonne of steel was RMB2,995, nearly flat year-over-year.

• Cash and cash equivalents were RMB3.84 billion; current ratio remained at 1.2x.

Outlook and guidance

• Management expects a moderate global economic recovery and gradual steel market improvement in H2 2026, aided by policy support and supply discipline.

• Steel market is anticipated to remain in a strong supply/weak demand pattern, but with no risk of sharp consumption decline.

• Focus remains on green transformation, digitalisation, product R&D, and high-value product development.