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Chongqing Iron and Steel's 2026 interim report shows net loss of 179 million yuan, widening year-on-year
Chongqing Iron and Steel released its 2026 interim report. During the reporting period, the company's total operating revenue was 11.826 billion yuan, down 9.62% year-on-year. Net profit attributable to the parent company was negative 179 million yuan, a decrease of 47.8849 million yuan compared with the same period last year, with the loss widening year-on-year. Net cash inflow from operating activities was 563 million yuan, down 36.09% year-on-year. The company's asset-liability ratio was 55.06%, gross margin was 0.84%, return on equity was negative 1.21%, and diluted earnings per share was negative 0.02 yuan. The number of shareholders was 171,800, and the top ten shareholders held 52.32% of the total share capital.
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Chongqing Iron and Steel H1 revenue falls 9.6%, loss widens to 179 million yuan
Chongqing Iron and Steel released its 2026 interim report. First-half operating revenue was 11.826 billion yuan, down 9.6% year on year, while net loss attributable to the parent widened to 179 million yuan from a loss of 131 million yuan in the same period last year. In the second quarter, operating revenue was 6.94 billion yuan, up 7.2% year on year, and net profit attributable to the parent swung to a profit of 20.25 million yuan. As of the end of the second quarter, total assets were 32.813 billion yuan, up 2.3% from the end of the previous year, and net assets attributable to the parent were 14.746 billion yuan, up 6.0%. The company said that although the steel industry remains oversupplied, cost-reduction measures enabled it to return to a quarterly profit in the second quarter, with operating performance continuing to recover from the bottom.
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.
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Multiple steel companies issue first-half 2026 profit warnings, broadly forecasting losses
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.
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Valin Steel expects first-half net profit to drop over 80%
Valin Steel issued a profit forecast, estimating first-half 2026 net profit at 200 million to 300 million yuan, a year-on-year decline of 82.84% to 88.56%. The company said the steel industry remains in a deep adjustment, with prominent supply-demand imbalances and high raw material prices squeezing profit margins. In addition, a one-off expense from back taxes and late payment penalties, including 452 million yuan in back taxes and 244 million yuan in late payment penalties, dragged on current results. After absorbing the impact of the back taxes, first-half total profit is expected to be 750 million to 950 million yuan. Chongqing Iron and Steel earlier also forecast a half-year loss of 179 million yuan, similarly affected by industry oversupply and rising costs. A CICC research report noted that steel industry profits in 2026 are unlikely to see significant improvement, but differentiated output controls and domestic substitution of high-end materials may bring structural opportunities.
China