Xinjiang Ba Yi Iron & Steel reports H1 2025 revenue and profit drop

Xinjiang Ba Yi Iron & Steel (BYIS) reported a challenging first half of 2025, with revenue decreasing by 6.73% to 8,732,897,880.68 yuan compared to the same period in 2024. The company’s total profit saw a loss of 686,581,797.45 yuan. Operating cash flow was negative 255,547,569.43 yuan, a significant drop from 1,226,623,002.98 yuan in H1 2024. The decrease in revenue was attributed to a market downturn and lower selling prices for steel products.

Despite the downturn, BYIS is implementing a “Quality and Efficiency Improvement, Heavy Returns” action plan for 2025, focusing on its core steel business by accelerating product structure transformation. This includes an emphasis on high-tech and high-value-added products like SPCC-MC, Q370R, and Q550. Production data for H1 2025 showed varied performance, with construction materials production down 37.84% and sales down 37.77%, while plate production increased 20.20% and sales rose 20.87%. Metal products also saw an increase, with production up 8.90% and sales up 7.65%.

The company evaluated risks associated with Baowu Group Finance Co., Ltd., affirming it operates under robust internal controls and risk management. BYIS has deposit and loan transactions with Baowu Group Finance Co., Ltd. of 188m yuan and 1.598bn yuan, respectively, and a total credit line of 4.5bn yuan. The finance company’s operational stability is deemed to safeguard member companies' funds. BYIS stated there are no plans for profit distribution or capital increase from reserves for the reporting period.