Xining Special Steel Co Ltd

Xining Special Steel released its 2026 interim report. Total operating revenue was 2.817 billion yuan, down 2.40 percent year on year. Net profit attributable to the parent company was negative 311 million yuan, with the loss widening by 76.5299 million yuan compared with the same period last year. Net cash flow from operating activities was negative 116 million yuan, down 1,133.57 percent year on year. The company's asset-liability ratio rose to 58.45 percent, gross margin was negative 8.03 percent, return on equity was negative 9.00 percent, and diluted earnings per share was negative 0.10 yuan. The number of shareholders was 71,800, and the top ten shareholders held 72.05 percent of total share capital.

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.

On the evening of July 14, several listed steel companies including Bengang Steel Plates, Lingyuan Iron and Steel, and Maanshan Iron and Steel disclosed their first-half 2026 earnings forecasts, broadly anticipating losses. Among them, Bengang Steel Plates expects a net loss attributable to shareholders of the listed company of 1.89 billion yuan, with the loss widening by 35.07 percent year-on-year. Lingyuan Iron and Steel forecasts a net loss attributable to shareholders of the listed company of between 770 million and 810 million yuan, an increase in losses compared with the same period last year. Xining Special Steel expects a net loss attributable to owners of the parent of approximately 303 million yuan, with the loss widening by 69 million yuan year-on-year. Maanshan Iron and Steel anticipates a net loss attributable to shareholders of the listed company of around 72 million yuan, narrowing the loss by about 3 million yuan year-on-year. Earlier, Angang Steel and Chongqing Iron and Steel also warned of first-half losses, while Valin Steel, though forecasting a profit of 200 million to 300 million yuan, sees a year-on-year decline of 82.84 to 88.56 percent. The industry's downturn persists, with the contradiction of strong supply and weak demand becoming more pronounced, and high and firm prices for raw materials such as iron ore and coal serving as the core triggers for the losses.

Xining Special Steel disclosed its earnings forecast, expecting a net loss attributable to the parent company of 303 million yuan in the first half of 2026, compared with a loss of 234 million yuan in the same period last year. The net loss after deducting non-recurring items is expected to be 450 million yuan, compared with a loss of 247 million yuan a year earlier. The company stated that the steel industry is undergoing deep adjustments, with strong supply and weak demand in the steel market, firm prices of major raw materials and fuels, and fluctuating downward steel selling prices. In addition, the company's promotion of green and environmental protection upgrades and equipment and process renovation projects caused periodic disruptions to production and operations, leading to a year-on-year increase in losses in the first half of the year.