Angang Steel Co., Ltd. (00347) announced interim results with net loss of 2,689 billion yuan, an increase of 100.07% year-on-year

According to the Zhitong Finance App, Angang Steel Co., Ltd. (00347) announced its 2024 semi-annual results. The group achieved operating income of 55.449 billion yuan (RMB, same below) during the period, a year-on-year decrease of 7.69%; net loss to mother was 2,689 billion yuan, an increase of 100.07% over the previous year; and a basic loss per share was 0.287 yuan.

According to the announcement, in the first half of 2024, the steel industry continued to be weak. The overall industry lost money, downstream demand continued to be sluggish, and steel prices showed a low fluctuation trend. Although the raw materials side declined in tandem, the decline was lower than on the sales side. The scissor gap between buying and selling narrowed further, and profit margins were further compressed. Faced with downward pressure on the steel market, the company chose opportunities to purchase on the purchasing side to reduce procurement costs; the sales side emphasized product efficiency, and resources were skewed towards marginal profit ranking of previous products; and the manufacturing side continued to promote system cost reduction. However, due to the continued narrowing of the supply and marketing markets, the company's production and operation are still at a loss.

As of June 30, 2024, the Group's capital commitment was 3.44 billion yuan, mainly the signed foreign investment contracts of 239 million yuan that have not been fulfilled or not fully fulfilled, and signed construction and renovation contracts of 3.201 billion yuan that have not been fulfilled or not fully fulfilled.

In the first half of 2024, guided by Xi Jinping's ideology of socialism with Chinese characteristics in the new era, the company united and led employees to fully implement Angang Steel Group's “focus on five key points and promote three new breakthroughs” work plan, actively respond to downward pressure on the steel industry, strive to build a “Type 5 enterprise”, continue to deepen transformation and innovation, focus on improving quality and efficiency, increase market development efforts, and advance all production and operation tasks steadily and effectively. In the first half of the year, production of iron, steel and steel reached 12.285 million tons, 12.584 million tons, and 12.09.78 million tons respectively, a decrease of 8.23%, 6.99%, and 4.15%, respectively, compared with the same period last year. It sold 1201.1 million tons of steel, a decrease of 6.07% compared with the same period last year, and achieved a steel production and sales rate of 99.28%.