Hangzhou Iron & Steel warns of trading risks amid surge

Hangzhou Iron & Steel Group (SSE:600126) issued a warning to investors regarding abnormal stock trading fluctuations. The company's stock has surged 188.36% since January 22, 2025, significantly outpacing industry and market indices. The company cautions that the stock's market valuation has deviated from its fundamentals, leading to increased risks, and the company advises investors to invest rationally, including noting the risks of speculative trading and overvaluation. Additionally, the company projects a net loss of approximately -630 million yuan for 2024, citing low steel prices and high raw material costs, and the company also notes that the 2024 revenue attributable to their DeepSeek partnership accounts for only 0.06% of total revenue, which the company says is extremely low, and the partnership does not have any core technological capabilities. Furthermore, the company's controlling shareholder, Hangzhou Iron & Steel Group, stated that there are no impending material restructuring plans, share issuance, or asset injections, or other business issues.