Hangzhou Iron & Steel warns of extreme stock volatility

Hangzhou Iron & Steel (SSE:600126) has issued a risk warning to investors, citing severe abnormal fluctuations in its stock trading. The company's shares have surged 217.24% since January 22, 2025, significantly outperforming both the broader steel industry and the Shanghai Composite Index. The company emphasizes that this increase is not supported by fundamental changes and warns of potential market overreaction. The company also clarified that its involvement with DeepSeek is limited to deploying the software within partner systems, and its 2024 annual earnings are expected to show a net loss of approximately 630 million yuan. Hangzhou Iron & Steel also cautioned about relatively low gross profit margins.