Beijing Shougang Co (000959) H1 2024 earnings summary

Executive summary

• Revenue for the first half of 2024 was RMB 56.68 billion, a slight decrease from RMB 57.37 billion year-over-year.

• Net profit attributable to shareholders was RMB 394.78 million, down from RMB 410.36 million year-over-year.

• Total assets as of June 30, 2024, were RMB 135.58 billion, with a debt ratio of 59.65%.

Financial highlights

• Operating income for H1 2024 was RMB 56.68 billion, with operating costs at RMB 54.48 billion.

• Gross margin remained stable, with main product lines (steel billets, hot-rolled, cold-rolled) contributing the majority of revenue.

• Basic EPS for the period was RMB 0.0509.

• Net cash flow from operating activities was RMB 1.15 billion, up from RMB 356 million year-over-year.

Outlook and guidance

• The company expects to recognize RMB 4.05 billion in revenue from unfulfilled contracts in the remainder of 2024.

• Management continues to focus on cost control, product structure optimization, and capital efficiency.