Fangda Special Steel Technology (600507) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 was RMB 8.03 billion, down 7.61% year-over-year; net profit attributable to shareholders was RMB 208 million, down 48.56% year-over-year.

• Gross margin and net margin declined due to higher raw material costs and reduced fair value gains.

• Total assets increased 35.40% to RMB 26.39 billion; net assets attributable to shareholders decreased 2.41% to RMB 9.91 billion.

Financial highlights

• Operating income: RMB 8.03 billion (down 7.61% YoY).

• Net profit attributable to shareholders: RMB 208 million (down 48.56% YoY).

• Operating cash flow: RMB 313 million (down 20.33% YoY).

• Basic and diluted EPS: RMB 0.09 (down 48.56% YoY).

• Gross margin and net margin both declined significantly.

Outlook and guidance

• Industry expects continued structural differentiation: high-end plate demand strong, construction steel weak.

• Downside risks remain from weak real estate and global trade barriers; industry profit recovery expected to be mild in H2 2026.