Nanjing Iron & Steel (600282) H2 2024 earnings summary

Executive summary

• Achieved net profit attributable to shareholders of ¥2.26 billion, up 6.37% year-over-year, with a weighted average ROE of 8.59%.

• Revenue was ¥61.81 billion, down 14.79% year-over-year, mainly due to lower steel prices and sales volume.

• Fourth quarter net profit rose 10.24% year-over-year to ¥507 million.

• High-end steel materials sales reached 2.61 million tons, accounting for 28.03% of total steel sales, with gross margin of 17.17%.

• Total assets at year-end were ¥69.11 billion, down 5.56% from the previous year.

Financial highlights

• Net profit attributable to shareholders: ¥2.26 billion, up 6.37% year-over-year.

• Revenue: ¥61.81 billion, down 14.79% year-over-year.

• Operating cash flow: ¥3.22 billion, up 20.39% year-over-year.

• Basic and diluted EPS: ¥0.3667, up 6.38% year-over-year.

• Gross margin for steel manufacturing: 13.27%, up 1.34 percentage points.

• R&D expenses: ¥2.44 billion, up 1.41% year-over-year.

Outlook and guidance

• 2025 targets: steel output of 9.9 million tons, revenue of ¥63 billion, and fixed asset investment of ¥1.95 billion.

• Focus on agile operations, innovation, digital transformation, green development, and supply chain ecosystem.

• Emphasis on high-end, green, and intelligent manufacturing, with continued investment in R&D and digitalization.