Inner Mongolia Baotou Steel Union (600010) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 was RMB 13.31 billion, down 13.73% year-over-year due to weak steel prices and higher raw material costs.

• Net loss attributable to shareholders was RMB 462.70 million, compared to a profit of RMB 44.96 million in Q1 2025.

• Production disruptions from accidents and scheduled maintenance led to lower output and higher costs.

• The company is accelerating recovery efforts and optimizing procurement and cost controls.

Financial highlights

• Operating income: RMB 13.31 billion, down from RMB 15.43 billion year-over-year.

• Net loss: RMB 462.70 million vs. net profit of RMB 44.96 million last year.

• Operating cash flow: negative RMB 1.81 billion, further deteriorating from negative RMB 987 million in Q1 2025.

• Basic and diluted EPS: -0.0102 RMB vs. 0.0010 RMB year-over-year.

• Gross margin compressed due to higher input costs and weak demand.

Outlook and guidance

• Focus remains on long-term stable profitability in steel, optimizing industrial layout, and expanding high-end and differentiated steel products.

• Plans to accelerate recovery of affected production lines and enhance safety and efficiency.

• Continued efforts to expand downstream demand and improve order fulfillment.