Hang Zhou Iron & Steel Co Ltd

Hangzhou Iron & Steel released its 2026 interim report, swinging to a profit, with net profit attributable to the parent company of 12.526 million yuan, an increase of 127 million yuan compared with the same period last year. The company's total operating revenue was 12.615 billion yuan, and net cash inflow from operating activities was 744 million yuan, marking two consecutive years of growth. The asset-liability ratio fell to 35.67%, and the gross margin was 3.89%, rising for four consecutive quarters. The number of shareholders was 155,100, and the top ten shareholders held 64.13% of the total share capital.

A-share listed steel companies broadly came under pressure in the first half of 2026. Data from Hithink RoyalFlush shows that as of July 16, a total of 25 listed steel firms had disclosed their semi-annual earnings forecasts, with 16 reporting losses, accounting for more than 60 percent of the total. Ge Xin, deputy director of Lange Steel Research Center, said the domestic steel market is firmly in a state of oversupply, while raw material prices for iron ore, coking coal and coke remain elevated, keeping overall industry sentiment at a low level. Performance is clearly diverging. Small and medium-sized mills focused on construction long products such as rebar and wire rod are posting large losses, while leading enterprises with exposure to high-end flat products, stainless steel and military-grade special steel are holding the line on profitability. Angang Steel expects a first-half net loss attributable to the parent of 2.047 billion yuan, Bengang Steel Plates warns of a loss of 1.89 billion yuan, and Anyang Iron and Steel has swung from profit to a loss of nearly 1.2 billion yuan. Valin Steel, Taigang Stainless Steel and Liuzhou Iron and Steel remain profitable but with year-on-year declines in net profit, while Hangzhou Iron and Steel has turned a loss into a profit. Ge Xin noted that the steel industry will enter its traditional off-season in the second half of the year, leaving limited room for most steelmakers to repair earnings. However, once the concentrated release of high-grade iron ore from Guinea's Simandou project materialises and domestic policies to ensure coal mine supply and boost output take effect, raw material cost pressure is expected to ease.

Hangzhou Iron & Steel announced that it expects net profit attributable to owners of the parent company for the first half of 2026 to be 12.6 million yuan, swinging to a profit year-on-year. The change in performance is mainly due to narrowing losses in the core steel business and the release of benefits from the digital economy business. The company's net profit in the first quarter was 10 million yuan, implying an estimated second-quarter net profit of about 3 million yuan, a quarter-on-quarter decline of 68 percent.