Chongqing Iron & Steel Company (1053) H1 2026 earnings summary

Executive summary

• Revenue for H1 2026 was RMB11.83 billion, down 9.62% year-over-year, with a net loss attributable to shareholders of RMB179 million, an increase in loss of RMB48 million compared to H1 2025.

• The company achieved a turnaround to profit in Q2 2026, with a net profit of RMB20 million, reversing the loss trend from Q1 and improving industry rankings in profitability and cost.

• Production and sales volumes declined, but cost reduction and efficiency measures improved competitiveness and management efficiency.

• Industry conditions remained challenging due to oversupply, declining steel prices, firm raw material costs, and increased logistics expenses.

Financial highlights

• Revenue: RMB11.83 billion, down 9.62% year-over-year.

• Net loss attributable to shareholders: RMB179 million, compared to a loss of RMB131 million in H1 2025.

• Net cash flows from operating activities: RMB563 million, down 36.09% year-over-year.

• Gross margin for principal operations: 0.61%, a decrease of 0.5 percentage points year-over-year.

• Basic earnings per share: -0.02 RMB, compared to -0.01 RMB in H1 2025.

Outlook and guidance

• The company will focus on optimizing procurement, increasing high value-added specialty steel production, accelerating destocking, and further cost reduction.

• Plans include strengthening digital systems, controlling asset-liability ratio, and expanding direct supply to end-users.