Xinyu Steel swings to H1 loss as steel slump bites
First-half loss confirmed at 607 million yuan Xinyu Steel's interim report showed a net loss of 607 million yuan, versus a 110 million yuan profit a year earlier, with revenue down 8.02% and operating cash flow negative 1.245 billion yuan. The loss is driven by industry oversupply, high raw material costs, and the Q1 blast furnace overhaul. This confirms weak earnings and pressures the share price.
The confirmed H1 loss is the core negative fundamental result for the period.
Industry-wide losses from cost squeeze Over 70% of listed steelmakers warned of first-half losses, with coking coal up 74% and coke up 57.3% year on year, while steel prices lagged. This industry backdrop explains why Xinyu Steel's losses are not company-specific and keeps pressure on the stock until raw material costs ease.
Shows the sector-wide cost pressure that is the main external driver of Xinyu's loss.
Q2 core profit turned positive after overhaul After a 62-day blast furnace overhaul ended in February, Q2 deducted net profit swung to 72-99 million yuan from a Q1 loss of 787 million yuan. The company exited low-end trade and grew high-end product sales, showing the worst may be over and supporting a recovery narrative.
The Q2 turnaround is the main positive counterweight to the H1 loss.
Dividend payout raised to at least 50% The board approved a plan to pay at least 50% of distributable profit as cash dividends for 2026-2028, with a minimum of 0.1 yuan per share annually, and share buybacks count toward the ratio. This signals confidence in future cash generation and supports the stock, though shareholder approval is still pending.
A concrete capital-return commitment that can support investor sentiment despite current losses.