Shandong Iron & Steel cash flow jumps 107% on high-end production shift

Shandong Iron and Steel Company Limited reported a substantial improvement in its third-quarter 2025 performance, achieving a net operating cash flow of CNY3.259 billion, an increase of CNY1.688 billion or 107.45% year-on-year. This turnaround is largely attributed to enhanced operational efficiency and strategic initiatives, including optimized product structure and cost control. The company's high-end product ratio increased by 5.4 percentage points year-on-year during the first three quarters of 2025.

The company is actively pursuing "high-end, green, intelligent, and efficient" development, with a focus on core products like bearing steel, pipeline steel, automotive plates, and high-strength wear-resistant steel. This strategy aims to expand market share and penetrate terminal markets. Shandong Iron and Steel also highlighted its commitment to digital transformation, establishing an AI Intelligence Department to integrate AI technology across business operations, smart factories, and production processes to improve efficiency and reduce costs.

Furthermore, the company has implemented a new operating model, "product management + simulated operations," which has significantly boosted profitability. This model involves cross-functional teams focused on cost reduction, production efficiency, logistics optimization, and energy savings, contributing to improved margins and overall financial health.