Shandong Iron & Steel (600022) Q4 2024 earnings summary

Executive summary

• Revenue declined 9.26% year-over-year to ¥82.09 billion, with net loss attributable to shareholders of ¥2.26 billion, reflecting a challenging steel market and lower prices.

• Gross margin compressed to 1.95%, down 2.61 percentage points from last year, as cost reductions could not offset price declines.

• Operating cash flow turned positive at ¥202 million, a significant improvement from last year’s outflow.

• No dividend distribution for 2024 due to negative distributable profits.

Financial highlights

• Revenue: ¥82.09 billion, down 9.26% year-over-year.

• Net loss attributable to shareholders: ¥2.26 billion, compared to a loss of ¥399.6 million last year.

• Basic and diluted EPS: -0.2129 yuan, down from -0.0373 yuan.

• Gross margin: 1.95%, down 2.61 percentage points.

• Operating cash flow: ¥202 million, up ¥1.41 billion year-over-year.

• Net assets attributable to shareholders: ¥18.78 billion, down 11.11% year-over-year.

Outlook and guidance

• 2025 steel demand expected to decline by ~3%, with total apparent crude steel consumption below 900 million tons.

• Company targets a return to profitability, focusing on cost control, efficiency, and high-end product development.

• Planned 2025 production: 10.49 million tons pig iron, 15.33 million tons crude steel, 15.89 million tons billets.

• Fixed asset investment planned at ¥973 million for 2025, focusing on digitalization, green transformation, and product upgrades.