Inner Mongolia Baotou Steel Union (600010) H2 2024 earnings summary

Executive summary

• Revenue reached ¥68.09 billion, down 3.51% year-over-year; net profit attributable to shareholders was ¥264.63 million, a 48.64% decrease year-over-year.

• Adjusted net profit (excluding non-recurring items) was -¥42.16 million, a significant decline from ¥433.55 million last year.

• Operating cash flow improved to ¥2.38 billion from -¥988.63 million last year.

• Board proposes a cash dividend of ¥0.02 per 10 shares, totaling ¥90.58 million.

• Production: 14.21 million tons of iron, 14.99 million tons of steel, 1.412 million tons of billets, 377,300 tons of rare earth concentrate, and 578,400 tons of fluorspar concentrate.

Financial highlights

• Gross margin was 7.88%, down 1.54 percentage points year-over-year.

• Basic EPS was ¥0.0058, down 48.67% year-over-year; adjusted EPS was -¥0.0009.

• Weighted average ROE was 0.51%, down 0.47 percentage points; adjusted ROE was -0.08%.

• Total assets increased 2.21% to ¥155.13 billion; net assets attributable to shareholders rose 0.18% to ¥51.91 billion.

• Asset-liability ratio increased to 60.48% from 59.50%.

Outlook and guidance

• 2025 targets: 14.62 million tons of iron, 15.64 million tons of crude steel, 14.76 million tons of billets, 390,000 tons of rare earth concentrate, and 650,000 tons of fluorspar concentrate.

• Focus on cost control, product structure optimization, and green transformation; plans to expand high-end steel and rare earth steel production.

• Emphasis on digitalization, green energy, and R&D to drive future growth.