Chongqing Iron & Steel Co (HKG: 1053) has released its interim results for the six months ended June 30, 2026, with revenue reaching RMB 11.826 billion, down 9.62% year-on-year. The company recorded a net loss attributable to shareholders of RMB 179 million, widening by 36.55% compared to the same period last year, with basic loss per share of RMB 0.02.
The operational downturn has been steadily improving, with the company achieving a profitable single quarter in Q2. The substantial loss trend observed in Q1 was effectively contained, and in the April-to-June period, production and sales volumes, costs, and selling prices all improved in tandem, delivering profitability for the quarter.
Compared with 2025, the company's competitive position in the industry has been steadily recovering: during January-June, both profit per tonne of steel and return on net assets moved up 13 percentile rankings within the industry. Meanwhile, the China Iron and Steel Association's pricing percentile for hot-rolled coils and heavy plates improved by 10 and 5 percentiles, respectively.
Dual efforts in energy management and process optimization have driven breakthroughs in core metrics. June saw notable results from both energy control and manufacturing process enhancements: external energy purchase costs fell by RMB 27 per tonne versus 2025, hitting an all-time low; blast furnace fuel ratio dropped by 20 kg per tonne, marking a near two-year low; converter smelting cycle time was shortened by 3.48 minutes, setting a new record; and the 4100mm heavy plate line at the rolling mill achieved another monthly high in residual material utilization.
Product and channel optimisation has continued, strengthening the company's ability to hedge against market risks. The push toward higher-value products accelerated, with high value-added special steel grades in hot-rolled coils and medium-heavy plates rising by 17 and 9 percentage points, respectively, versus 2025. Lock-in pricing efforts were intensified, with fixed-price orders for hot-rolled coils and medium-heavy plates each up 9 percentage points year-on-year, effectively smoothing out spot price volatility. Direct supply to end users has also been expanded, significantly reducing profit leakage through intermediaries.