Chongqing Iron & Steel Company (1053) H2 2024 earnings summary

Executive summary

• Recorded a net loss attributable to shareholders of RMB3.20 billion for 2024, deepening from RMB1.49 billion loss in 2023, amid a challenging steel market with high output, high costs, and low demand.

• Operating income fell 30.7% year-over-year to RMB27.24 billion, mainly due to lower sales volume and prices of commodity billet.

• No profit distribution or capital reserve transfer proposed for 2024 due to negative unappropriated profit.

Financial highlights

• Total assets decreased 5.0% to RMB35.48 billion; net assets attributable to shareholders dropped 16.4% to RMB16.61 billion.

• Net cash flow from operating activities rose 28.2% to RMB1.31 billion.

• Basic and diluted EPS were both -0.36 RMB/share, compared to -0.17 RMB/share in 2023.

• Gross margin for iron and steel segment decreased by 3.31 percentage points year-over-year.

Outlook and guidance

• Plans to produce 6.67 million tons of iron, 8.01 million tons of steel, and 7.73 million tons of materials in 2025.

• Focus areas for 2025 include safety, green development, cost control, efficiency, and market expansion.

• Industry expected to remain under pressure with supply exceeding demand and policy constraints on new capacity.