Inner Mongolia Baotou Steel Union (600010) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 was RMB 14.66 billion, down 18.57% year-over-year; YTD revenue was RMB 49.87 billion, down 6.94% year-over-year.

• Net loss attributable to shareholders in Q3 was RMB 624.54 million, a 1,110.78% increase in losses year-over-year; YTD net loss was RMB 516.44 million, a 208.75% increase in losses year-over-year.

• The company attributes the losses to strong supply, weak demand, low prices, and high costs in the steel industry, with steel prices falling more than raw material prices.

Financial highlights

• Gross margin and profitability declined sharply, with basic and diluted EPS at -0.0138 for Q3 and -0.0114 YTD.

• Operating cash flow for Q3 was RMB 731.70 million; YTD operating cash flow was RMB 897.62 million.

• Total assets at quarter-end were RMB 153.25 billion, up 0.97% from year-end; equity attributable to shareholders was RMB 51.37 billion, down 0.87%.

Outlook and guidance

• The company is implementing a “quality improvement and efficiency enhancement” action plan, including a share buyback for capital reduction.