Jiangsu Shagang (002075) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 was ¥6.70 billion, down 1.89% year-over-year; net profit attributable to shareholders was ¥137 million, down 11.89% year-over-year.

• Operating cash flow dropped sharply by 84.54% year-over-year to ¥199 million.

• The company maintained a leading position in high-quality special steel and gear products, with strong R&D and green transformation initiatives.

• Dividend payout of ¥0.25 per 10 shares, totaling ¥54.85 million, representing 100% of distributable profit.

Financial highlights

• Gross margin for steel products was 8.15%, down 0.25 percentage points year-over-year.

• Total assets increased 8.68% from year-end 2025 to ¥24.14 billion; net assets attributable to shareholders rose 1.28% to ¥6.65 billion.

• Basic and diluted EPS were both ¥0.0625, down 11.85% year-over-year.

• Non-recurring gains totaled ¥44.37 million, mainly from government subsidies and fair value changes.

Outlook and guidance

• The company expects continued market pressure from high supply, rigid costs, and weak demand in steel, but will focus on cost reduction, product upgrades, and green transformation.

• Plans to expand new energy gear capacity to 300,000 units by end-2026 and accelerate high-end product development.