Liuzhou Iron & Steel reports strong H1 2025 earnings, expands hedging

Liuzhou Iron & Steel (SSE:601003) announced a robust performance in the first half of 2025, with net profit attributable to shareholders increasing by 579.54% to yuan 367,896,081.95, and total profit soaring by 1007.86% to yuan 690,812,418.87. Operating cash flow also saw an 85.15% rise to yuan 1,628,540,837.52. Despite an 8.32% decrease in revenue to yuan 34,674,976,494.15, the company achieved these gains through cost reduction, efficiency improvements, and product structure optimization.

In a move to mitigate market volatility, the company's board approved the continuation of hedging activities for raw materials and products. The hedging program, managed through domestic futures exchanges, covers commodities like steel, iron ore, and coking coal, with a maximum allocation of yuan 300 million for margin/premiums. This strategy aims to stabilize production costs and safeguard operating margins without engaging in speculative trading.

The company also announced leadership changes, with Mr. Wu Danwei and Mr. Chen Li resigning as director and deputy general manager, respectively, due to work adjustments, while remaining in other company roles. Furthermore, Mr. Wang Jianhua has been nominated as an independent director, pending shareholder approval. These decisions align with the company's focus on refining governance and operational resilience.