Chongqing Iron & Steel Company (1053) H2 2025 earnings summary

Executive summary

• Reported a net loss attributable to shareholders of RMB 2,722 million for 2025, narrowing from a RMB 3,196 million loss in 2024.

• Revenue declined 11.9% year-over-year to RMB 24,002 million amid lower steel prices and volumes.

• No dividend proposed due to negative unappropriated profit; share capital reduced by cancellation of repurchased shares.

• Industry faced high output, high cost, low demand, and low prices, prompting cost reduction and efficiency initiatives.

Financial highlights

• Total assets decreased 9.6% to RMB 32,086 million; net assets attributable to shareholders fell 16.2% to RMB 13,912 million.

• Operating cash flow improved 25.9% to RMB 1,649 million; net cash outflows from investing and financing activities.

• Basic and diluted EPS were RMB -0.31, compared to RMB -0.36 in 2024.

• Gross margin for iron and steel segment increased by 5.76 percentage points year-over-year.

Outlook and guidance

• Plans to produce 6.07 million tonnes of iron, 7.05 million tonnes of steel, and 6.78 million tonnes of materials in 2026.

• Strategic focus on green transformation, high-end products, smart manufacturing, and regional market leadership.

• Emphasis on risk management, lean operations, and value creation amid ongoing industry challenges.