Angang Steel Company (347) H2 2024 earnings summary

Executive summary

• Operating income for 2024 was RMB 105,101 million, down 9.06% year-over-year, with a net loss attributable to shareholders of RMB 7,122 million, a significant increase in losses compared to RMB 3,255 million in 2023.

• Basic earnings per share was RMB -0.759, compared to RMB -0.347 in 2023, reflecting a 118.73% year-over-year decline.

• The company faced intensified weak market conditions, declining steel prices, and high ore costs, leading to overall losses in the main steel business.

• No cash dividends, bonus shares, or reserve transfers were proposed for 2024 to preserve financial stability.

Financial highlights

• Total profit for 2024 was RMB -7,035 million, a 70.38% deeper loss year-over-year.

• Net cash flow from operating activities was RMB -787 million, down 148.08% from 2023.

• Total assets increased to RMB 100,578 million, while owner’s equity attributable to shareholders fell 12.93% to RMB 47,679 million.

• Asset-liability ratio rose to 51.61%, up 8.64 percentage points year-over-year.

• R&D expenditure rose 39.22% to RMB 3,972 million, representing 3.78% of operating income.

Outlook and guidance

• The company will continue its “11361” strategy, focusing on competitiveness, innovation, and risk resistance.

• Plans for 2025 include RMB 3,160 million in fixed and external investments, funded by internal resources, bank loans, and bond issuance.

• Emphasis on high-quality development, digital transformation, green and low-carbon initiatives, and cost reduction.