RecentlyAzteckingmegawaysMaanshan Iron and Steel Co., Ltd. disclosed its quarterly report in 2024. During the reporting period, the company achieved a total operating income of about 203.Azteckingmegaways92 million yuan, down 10% from the same period last yearAzteckingmegaways.31%; it belongs to the shareholders of the listed companyAzteckingmegawaysThe net profit loss was 311 million yuan, continuing the loss trend.
Prior to this, Maanshan Iron and Steel Co., Ltd. disclosed the 2023 annual report, realizing the net profit belonging to shareholders of listed companies-1.327 billion yuan for the whole year.
Deterioration of cash flow from business activities
In the first quarter of 2024, the net cash flow generated by the company's operating activities was-1.308 billion yuan, compared with 1.657 billion yuan in the first quarter of 2023. The demand of the iron and steel industry continues to be weak, sales have declined, and the net cash inflow from both ends of purchases and sales has declined compared with the same period last year; at the same time, the statement of Maanshan Iron and Steel Group Financial Co., Ltd. will no longer be merged in this period, and the cash inflow outside the main steel industry has decreased compared with the same period last year.
During the reporting period, the group produced 4.5 million tons of pig iron and 4.91 million tons of crude steel, basically the same as the same period last year, and produced 4.49 million tons of steel, a decrease of 7.1 percent over the same period last year.
Maanshan Iron and Steel Co., Ltd. mentioned in the first quarterly report that the overall demand for steel downstream of the iron and steel industry is insufficient, and the operating pressure of iron and steel enterprises is great. The national output of pig iron and crude steel decreased by 1.9% and 2.9% respectively compared with the same period last year, while steel output increased by 4.4%. The average domestic steel price index fell 5.61% compared with the same period last year; iron ore prices fluctuated, the average Platts index (62%Fe:CFR: Qingdao Port) fell 1.36% year-on-year; and the average coke price index fell 18.52% year on year.
The loss widened last year.
According to the 2023 annual report of Maanshan Iron and Steel Co., Ltd., the company achieved a total operating income of 98.938 billion yuan in 2023, down 3.15% from the same period last year. The net profit attributed to shareholders of listed companies was-1.327 billion yuan, compared with a loss of 885 million yuan in the same period last year.
According to the announcement, in 2023, the situation of the iron and steel industry is extremely grim, the supply is stronger than the demand, the actual downward shift of the cost center of gravity is significantly less than the decline in steel prices, and the profit space of steel enterprises has been seriously squeezed. The company should actively respond, take the "four modernizations" as the direction, take "Siyou" as the operating program, seize the market opportunities such as rail transit, new energy vehicles and household appliances, practice accounting operation and strengthen lean operation with two-wheel drive, reduce cost and increase efficiency on the one hand, grasp variety channels on the other, significantly improve business performance in the second half of the year, achieve a net profit of 911 million yuan (unaudited) belonging to shareholders of listed companies, and reduce losses compared with the previous year. However, due to the high price of raw fuel market and other factors, the operating income in the second half of the year could not fully make up for the loss in the first half of the year, and the company suffered a loss in operating performance in 2023.
The announcement also shows that in 2023, the non-recurrent profit and loss of the company belonging to the shareholders of the listed company is about 374 million yuan, which is mainly due to the comprehensive effects of the company's profit and loss on the disposal of non-current assets, the investment income obtained from the disposal of the shares of subsidiaries, and the government subsidies received. The year-on-year increase in non-recurring profits and losses attributable to shareholders of listed companies in 2023 is mainly due to the increase in government subsidies included in the profits and losses of the company in 2023, and investment income from the merger of Maanshan Iron and Steel Group Finance Co., Ltd., the company's holding subsidiary, and Baowu Group Finance Co., Ltd.
According to the Guotai Junan research report, 2023's steel production and sales volume were 20.615 million tons and 20.595 million tons, up 3.66% and 3.61% respectively over the same period last year; the gross profit per ton of steel was 79.14 yuan / ton, down 52.44% from the same period last year. In 2023, the overall steel demand is weak, steel prices fall, superimposed raw material prices remain high, and the company's performance is under short-term pressure.