Chongqing Iron & Steel Company (1053) H1 2025 earnings summary

Executive summary

• Revenue for H1 2025 was RMB13.09 billion, down 13.26% year-over-year, with a net loss of RMB131 million, a significant reduction from the RMB689 million loss in H1 2024.

• The company focused on cost reduction, efficiency improvements, and quality enhancement, achieving a 40% reduction in quality-related losses and a 77% decrease in customer complaints compared to 2024.

• Specialty steel and green transformation initiatives advanced, with energy savings of 56,000 tonnes of standard coal and a self-generation rate reaching 96.4% in March.

• Operational improvements were achieved despite weak steel and raw material prices and industry oversupply.

Financial highlights

• Revenue: RMB13.09 billion, down 13.26% year-over-year.

• Net loss attributable to shareholders: RMB131 million, improved from a RMB689 million loss in H1 2024.

• Basic and diluted EPS: -0.01 RMB/share, up from -0.08 RMB/share in H1 2024.

• Net cash flows from operating activities: RMB880 million, up 7.01% year-over-year.

• Gross margin for steel products improved by up to 4.67 percentage points year-over-year.

Outlook and guidance

• The company will continue to focus on high-end, intelligent, green, and efficient development, with emphasis on cost control, inventory optimization, and green transformation.

• Plans include further expansion of local resources, integrated purchasing and sales, and energy efficiency improvements to counter long-term industry risks.