Maanshan Iron & Steel Company Limited (Magang) released its unaudited 1H 2026 results, showing mixed performance as decisive cost-control measures partially offset softer steel demand.

Revenue and Profitability • Group revenue declined 2.23 % year on year to RMB 37.22 billion, reflecting weaker average steel prices. • Total profit edged up 1.86 % to RMB 0.12 billion, while operating profit surged 63.74 % to RMB 0.18 billion on lower financing costs, higher asset-disposal gains and tighter cost management. • Net loss attributable to shareholders narrowed to RMB 0.07 billion versus a RMB 0.07 billion loss a year earlier. Excluding non-recurring items, the loss widened to RMB 0.22 billion. • Basic and diluted loss per share remained RMB 0.01.

Cash Flow and Balance Sheet • Net cash generated from operating activities soared 295 % to RMB 3.72 billion, driven by greater use of bank bills and lower cash outlays for raw-material purchases. • Total assets slipped 1.18 % to RMB 80.78 billion; net assets attributable to owners were slightly lower at RMB 23.96 billion. • Interest-bearing debt stood at RMB 14.34 billion, entirely renminbi-denominated, with 79 % at fixed rates. Unutilised credit lines totalled RMB 44.21 billion, supporting liquidity. The asset-liability ratio eased to 55.12 %, down 0.55 percentage point from end-2025.

Operational Metrics • Group output reached 9.25 million tonnes of pig iron (-1.18 %), 10.02 million tonnes of crude steel (-3.19 %) and 9.93 million tonnes of finished steel (-1.64 %). • The flagship Magang Limited unit generated RMB 0.12 billion in total profit, up RMB 0.12 billion year on year, aided by a RMB 1.09 billion reduction across iron-making, energy, logistics and quality costs. • Subsidiary Changjiang Steel lifted total profit by RMB 0.05 billion to RMB 0.15 billion, raising the direct rolling rate to an all-time high of 91.67 %.

Strategic Highlights • Key product sales rose 11 % to 3.63 million tonnes; automotive steel shipments advanced 12 % to 1.24 million tonnes. • High-speed railway wheel deliveries totalled 2,444 units, coinciding with ten new CRCC certifications. • The group’s WIND ESG rating improved from A to AA, reflecting advances in energy efficiency and environmental compliance. • Ongoing investments include a No.4 slab caster, an additional 750,000-unit wheel line and further special-steel capacity.

Outlook for 2H 2026 Management cautions that oversupply and production curbs will keep industry margins tight. Priorities include deepening product differentiation, accelerating special-steel and high-speed rail wheel expansion, extending Baosteel collaboration, and maintaining strict cost and safety disciplines.

Dividend The board proposed no interim dividend for 1H 2026.

Governance and Other Matters All directors attended the board meeting approving the results; the interim financials were reviewed by the audit committee. There were no changes in controlling shareholders, no overdue bonds, and no share buy-backs during the period.