Maanshan Iron & Steel swings to profit, streamlines operations

Maanshan Iron & Steel announced a comprehensive set of financial results for the first half of 2025, revealing a substantial improvement in profitability. The company recorded a profit of RMB117,712,960, a significant increase from the loss of RMB1,190,806,469 in the same period last year. Net loss attributable to shareholders also improved to RMB-74,780,316, up RMB10.7 bn year-on-year, on total revenue of RMB38.076 bn. The company attributes this improvement to enhanced purchasing and manufacturing efficiency, resulting in a RMB91 per tonne reduction in steel production costs.

Key strategic initiatives included the divestment of a 35.42% stake in Maanshan Iron & Steel Company Limited to Baoshan Iron & Steel Company Limited for RMB5.139 bn, with RMB2.569 bn already received. Baoshan Iron & Steel also injected RMB3.861 bn into Maanshan Iron & Steel Company Limited, reducing Maanshan Iron & Steel’s holding from 100% to 51%. The company's cash flow from operating activities decreased by 23.38% to RMB940,725,426, while cash flow from financing activities surged by 596.76% to RMB2,297,776,926, driven by the receipt of the first installment from the equity transfer.

The board and supervisory committee have approved the semi-annual report, emphasizing its accuracy and compliance with legal requirements. The company also detailed the write-off of inventory depreciation provisions of RMB48.903 m, the accrual of RMB33.688 m, and a RMB9.57 m provision for accounts receivable impairment. These actions align with the company's "four modernizations" and "four haves" operating principles, focusing on value creation, integrated collaboration, and continuous reform.