Shandong Iron & Steel (600022) Q3 2024 earnings summary

Executive summary

• Revenue for the first nine months of 2024 was RMB 64.33 billion, down 5.92% year-over-year, with a net loss attributable to shareholders of RMB 1.45 billion and a basic EPS of -0.1361 yuan per share.

• The company experienced a significant decline in profitability due to market downturns, with both net profit and operating profit turning negative compared to the previous year.

Financial highlights

• Q3 revenue was RMB 19.12 billion, a 10.71% decrease compared to the same quarter last year.

• Net cash flow from operating activities for the first nine months was RMB 1.57 billion, a notable improvement from the prior year due to reduced cash outflows for goods and services.

• Total assets at quarter-end were RMB 66.79 billion, nearly flat from year-end 2023.

• Shareholders' equity decreased by 7.29% to RMB 19.59 billion since year-end 2023.

Outlook and guidance

• Management attributes the profit decline to a market downturn and expects continued pressure on profitability.