Shandong Iron & Steel (600022) Q4 2025 earnings summary

Executive summary

• Achieved a turnaround to profitability in 2025, with net profit attributable to shareholders of RMB 106 million, compared to a loss of RMB 2.89 billion in 2024.

• Revenue declined 12.11% year-over-year to RMB 67.25 billion, mainly due to lower steel sales volume and prices.

• Gross margin improved by 6.34 percentage points to 9.40%, driven by cost reductions and product mix optimization.

• Operating cash flow surged to RMB 4.39 billion from RMB 216 million in 2024.

• Completed acquisition of Yinshan Section Steel, resolving intra-group competition and optimizing product structure.

Financial highlights

• Net profit attributable to shareholders: RMB 106 million (2024: loss of RMB 2.89 billion).

• Revenue: RMB 67.25 billion, down 12.11% year-over-year.

• Gross margin: 9.40%, up 6.34 percentage points.

• Operating cash flow: RMB 4.39 billion, up RMB 4.18 billion year-over-year.

• Basic and diluted EPS: RMB 0.0100 (2024: -0.2730).

• Asset-liability ratio: 64.71%, down 0.60 percentage points from 2024.

Outlook and guidance

• 2026 steel industry expected to see slight volume decline, continued structural optimization, and gradual improvement in profitability.

• Company targets 2026 revenue of RMB 67.5 billion, cost and expense total of RMB 67 billion, and production of 18.43 million tons of crude steel.

• Strategic focus on high-end, green, intelligent, and efficient development, with emphasis on product upgrades and cost control.