Liuzhou Steel has disclosed its earnings forecast, estimating a net profit attributable to the parent company of 69 million to 83 million yuan for the first half of 2026, a year-on-year decline of 77.45% to 81.25%. Deducted non-recurring net profit is expected to be 49 million to 63 million yuan, down 81.84% to 85.88% year-on-year. The company stated that the sharp decline in performance is mainly due to a drop in domestic real estate development investment, a turn to negative manufacturing investment, and slowing infrastructure investment, compounded by heavy rainfall causing project shutdowns, with the steel market's strong supply and weak demand pattern remaining unimproved. At the same time, upstream raw material and fuel prices rose year-on-year, while downstream demand was sluggish, making it difficult to pass on costs, putting pressure on industry profitability. In addition, the upgrade and renovation of the company's 2800mm medium plate production line affected production and sales scale, and the full operation of ultra-low emission equipment increased depreciation and maintenance costs, with multiple factors squeezing profit margins. The company achieved a counter-trend recovery in production and operations in the second quarter by advancing collaborative efficiency initiatives.
Liuzhou Iron & Steel Co LtdCompany forecasts 70%+ profit drop due to weak downstream demand from real estate, manufacturing, and infrastructure, plus cost pressures.