Nanjing Iron & Steel (600282) H1 2024 earnings summary

Executive summary

• Net profit attributable to shareholders reached ¥1.23 billion in H1 2024, up 24.70% year-over-year; Q2 net profit rose 22.65% sequentially from Q1.

• Revenue for H1 2024 was ¥33.68 billion, down 8.78% year-over-year, mainly due to lower sales prices and volumes.

• Advanced steel materials sales reached 1.2978 million tons, accounting for 27.14% of total steel sales, with gross margin up 1.61 percentage points year-over-year.

• The company maintained robust export growth, with steel product export orders up 64% and export volume up 31% year-over-year.

Financial highlights

• Net profit attributable to shareholders: ¥1.23 billion, up 24.70% year-over-year.

• Revenue: ¥33.68 billion, down 8.78% year-over-year.

• Operating cash flow: ¥1.02 billion, down 7.12% year-over-year.

• Basic and diluted EPS: ¥0.20, up 24.72% year-over-year.

• Gross margin for advanced steel materials: 17.94%, up 1.61 percentage points year-over-year.

• Total assets at period end: ¥69.46 billion, down 5.08% from year-end 2023.

Outlook and guidance

• The company expects continued pressure from weak demand and low steel prices but aims to enhance high-end product sales and cost control.

• Plans to maintain high R&D investment and further digital transformation to strengthen competitiveness.

• Dividend proposal: cash dividend of ¥1.00 (pre-tax) per 10 shares, totaling ¥616.5 million, representing 50% of H1 net profit.