Angang Steel Company (347) H1 2024 earnings summary

Executive summary

• Operating income for H1 2024 was RMB55,449 million, down 7.69% year-over-year; net loss attributable to shareholders was RMB2,689 million, a 100.07% decrease from the prior year.

• Basic and diluted EPS were both -0.287, compared to -0.143 in H1 2023.

• Production and sales volumes of iron, steel, and rolled steel all declined year-over-year, reflecting weak downstream demand and persistent industry overcapacity.

• The steel industry faced weak demand, low prices, and high costs, leading to sector-wide losses and compressed profitability.

• The company focused on cost reduction, efficiency improvements, digital transformation, and green development.

Financial highlights

• Gross margin declined, with operating costs at RMB56,533 million, down 6.07% year-over-year.

• Net cash flow from operating activities was RMB572 million, a 77.26% decrease year-over-year.

• Total assets at June 30, 2024 were RMB96,702 million; owner’s equity attributable to shareholders was RMB52,041 million.

• Return on net assets (weighted average) was -5.03%, down 2.69 percentage points year-over-year.

• Net current liabilities were RMB10,059 million.

Outlook and guidance

• The company expects continued oversupply, weak demand, high costs, and low efficiency in the steel industry for the remainder of 2024.

• Strategic focus will remain on cost reduction, efficiency, marketing leadership, innovation, green transformation, and risk management.