Baogang Group's 2026 interim net profit reaches 279 million yuan, up 84.61% year on year
Baogang Group has released its 2026 interim report, with net profit attributable to the parent company of 279 million yuan, up 84.61% from the same period last year, marking a second consecutive year of growth. Total operating revenue was 28.034 billion yuan, down 10.52% year on year. Net cash inflow from operating activities was 2.475 billion yuan, a sharp year-on-year increase of 1,281.92%. The latest asset-liability ratio was 58.48%, down 1.58 percentage points from the same period last year. Gross margin was 13.89%, up 4.33 percentage points year on year. Diluted earnings per share were 0.01 yuan, up 87.88% year on year.
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Investigation Report on Baotou Steel's Major Explosion Accident on January 18 Released: 10 Dead, 84 Injured
The investigation report on the major container explosion accident at a subsidiary of Baotou Steel on January 18 has been officially released. The accident resulted in 10 deaths, 84 injuries, and direct economic losses of 67.23 million yuan. The investigation team of the People's Government of Inner Mongolia Autonomous Region has determined that this was a major production safety liability accident. The direct cause was compound damage accumulated from long-term equipment corrosion, and the failure to take effective on-site measures within 1.5 hours after the leak occurred. Currently, seven individuals have been subjected to compulsory measures by judicial authorities, and two more have been recommended for transfer to judicial authorities. The production line involved in the accident has fully resumed operations, and insurance claims are also underway.
Critical Materials & Supply Chain▲
Over 70% of listed steelmakers warn of first-half losses as dual cost pressures erode profits
First-half earnings forecasts from domestic listed steel companies show a marked widening of industry losses. According to an incomplete tally by Jiemian News, 15 out of 20 listed steelmakers are in the red, accounting for 75 percent. Among them, Angang Steel, Bengang Steel Plates, and Anyang Iron and Steel each reported losses exceeding 1 billion yuan, while Wujin Stainless Steel and Zhongnan Steel, among others, swung from profit to loss. Ge Xin, deputy director of Lange Steel Research Center, noted that the domestic steel market is oversupplied, while iron ore, coking coal, and coke have all stayed at elevated prices, with dual cost pressures continuously eating into steelmakers' profits. Mysteel data from Shanghai Ganglian shows that raw material price increases significantly outpaced steel in the first half, with coking coal prices up 74 percent year on year and coke prices up 57.3 percent. National Bureau of Statistics data shows that profits in ferrous metal smelting and rolling processing totaled 18.17 billion yuan in the first five months, down 42.7 percent year on year. Facing the industry downturn, product mix and resource endowments have become a dividing line. Companies such as Taiyuan Iron and Steel, Jiuquan Iron and Steel, Fushun Special Steel, and Baotou Steel have reduced losses or achieved profits through differentiated business strategies. Ge Xin believes the steel industry has completely bid farewell to the era of scale expansion, and future core competitiveness will focus on high-end product layout, full-process cost control, and upstream mineral resource support. In the short term, the traditional off-season in July and August combined with high raw material prices will limit the room for profit recovery for most steelmakers. In the medium to long term, the commissioning of high-grade iron ore from Simandou in Guinea in the second half of the year and the implementation of domestic policies to ensure coal mine supply and increase production are expected to ease raw material cost pressures.
Critical Materials & Supply Chain
Six Major Steel Firms Submit First Mandatory ESG Reports, Climate Transition Plans Remain Fragmented
The 2026 annual reporting season marks the official arrival of mandatory ESG disclosure for A-shares. Six major steel companies subject to the new rules—Baosteel, Baotou Steel, Angang Steel, Maanshan Steel, Chongqing Iron and Steel, and CITIC Special Steel—have had their sustainability reports undergo rigorous regulatory scrutiny for the first time. None of the six firms included a dedicated, standalone chapter on a systematic transition plan; information was generally fragmented. However, all have established phased carbon peak and carbon neutrality target systems. Among them, CITIC Special Steel raised its 2030 target for reducing carbon emissions per tonne of steel from 5% to 10%. In terms of resource allocation, Baosteel and CITIC Special Steel explicitly disclosed dedicated investments in energy conservation and low-carbon initiatives. Baosteel's investment in energy saving and carbon reduction reached 3.2 billion yuan last year. However, none of the six mentioned plans for divesting or shutting down high-carbon assets. On direct measures, the six firms made breakthroughs across multiple low-carbon processes. For example, Angang Steel built a 10,000-tonne green electricity and green hydrogen fluidized bed hydrogen metallurgy pilot line, and Baosteel's Zhanjiang Steel put into operation a million-tonne hydrogen-based shaft furnace near-zero-carbon production line. In supply chain management, Baosteel and CITIC Special Steel led in Scope 3 emissions disclosure. Due to the lack of dedicated transition plans, emission reduction achievements and interim progress were not systematically presented. However, most companies met their phased green targets for 2025, with Baosteel's carbon emission intensity per tonne of steel dropping 8% cumulatively from 2020 levels. Greenpeace called on steel firms to add a dedicated climate transition plan section, providing more detailed equipment renewal and retirement timelines and low-carbon capital expenditure, to enhance disclosure transparency and facilitate transition financing.
600010.CG
Baogang Group Chairman and Deputy General Manager Step Down; New Directors Elected and CFO Appointed
Baogang Group announced that due to work adjustments, Zhang Zhao will no longer serve as Chairman, Director, and Chairman of the Strategy, Risk, and ESG Committee. Guo Wei will no longer serve as Deputy General Manager. Liu Mi will no longer serve as Director, CFO, and member of the Strategy, Risk, and ESG Committee. After their departure, Zhang Zhao and Liu Mi will take up positions at Baogang Group, while Guo Wei will remain with the company. The board has approved the election of Chen Wenzhuo as a non-independent director of the eighth board and proposed him as a candidate for Chairman. Chang Guoxing has been elected as a non-independent director and appointed as CFO. Until the new Chairman is appointed, Zhang Zhao will continue to fulfill his relevant duties.
Critical Materials & Supply Chain▲
Baogang Group Adjusts Q3 2026 Rare Earth Concentrate Related-Party Transaction Price to 38,565 Yuan per Ton
Baogang Group announced that it plans to adjust the related-party transaction price for rare earth concentrate in the third quarter of 2026 to 38,565 yuan per ton, excluding tax, on a dry basis with REO at 50 percent. For every 1 percent increase or decrease in REO, the tax-exclusive price will change by 771.30 yuan per ton.
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