Liuzhou Iron & Steel Co (601003) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 was RMB 32.95 billion, down 4.96% year-over-year; net profit attributable to shareholders was RMB 76.12 million, down 79.31% year-over-year.

• Gross margin and profitability declined sharply due to weak steel demand, rising raw material costs, and industry overcapacity.

• The company maintained high R&D investment (RMB 1.81 billion, 5.5% of revenue), advanced high-end product development, and expanded international sales.

• No interim dividend or capital increase from reserves was proposed.

Financial highlights

• Operating income: RMB 32.95 billion, -4.96% year-over-year.

• Net profit attributable to shareholders: RMB 76.12 million, -79.31% year-over-year.

• Operating cash flow: RMB 1.48 billion, -9.37% year-over-year.

• Basic EPS: RMB 0.03, -78.57% year-over-year.

• Gross margin and net margin both declined significantly.

Outlook and guidance

• The company expects continued industry headwinds: weak demand, high raw material prices, and intensified competition.

• Strategic focus remains on high-end product development, cost control, green transformation, and international market expansion.