Jiang Su Wujin Stainless Steel Pipe Group Co Ltd

Wujin Stainless Steel has released its 2026 interim report. Total operating revenue was 821 million yuan, down 26.79 percent year on year. Net profit attributable to the parent company was a loss of 49.14 million yuan, a decrease of 125 million yuan compared with the same period last year, down 165.09 percent year on year, swinging from profit to loss. Net cash flow from operating activities was a negative 70.41 million yuan, down 164.45 percent year on year. The company's latest asset-liability ratio was 35.47 percent, gross margin was 4.35 percent, return on equity was negative 1.93 percent, and diluted earnings per share was negative 0.09 yuan. The company had 23,100 shareholders, and the top ten shareholders held 44.47 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.

Wujin Stainless Steel disclosed its earnings forecast, expecting a net loss attributable to the parent of 49 million yuan in the first half of 2026, compared with a profit of 75.4975 million yuan in the same period last year. The net loss after deducting non-recurring items is expected to be 62 million yuan, compared with a profit of 68.4806 million yuan in the same period last year. The company's main business is the research, development, production and sales of industrial stainless steel pipes and fittings. Both main business revenue and gross margin declined year-on-year in the current period, mainly due to intensified market competition, price competition, and higher cost allocation amid a decrease in total orders, leading to a decline in gross margin. The company stated that it will continue to promote lean management, develop new domestic application markets while advancing foreign trade business, to ensure stable production and operation.