Zhongnan Co. disclosed its earnings forecast, expecting a net loss attributable to the parent company of 20 million to 35 million yuan in the first half of 2026, compared with a profit of 5.29 million yuan in the same period last year. The net loss after deducting non-recurring items is expected to be 45 million to 85 million yuan, compared with a loss of 38.36 million yuan a year earlier. The company stated that the steel industry is facing the challenge of a widening scissors gap between costs and selling prices, with raw material prices fluctuating at high levels while steel prices decline, squeezing profit margins. Although the company has mitigated some adverse effects by strengthening cost-conscious operations, promoting product structure optimization, and reducing costs and increasing efficiency, it still reported a loss during the reporting period due to the dual pressures of strong supply and weak demand in the industry, as well as the squeeze from both input costs and output prices.
Sgis Songshan Co LtdThe article discusses steel industry challenges of strong supply and weak demand, which affects Sgis Songshan as a steel producer, but the company is not directly mentioned.