Guangdong Zhongnan Iron & Steel (000717.SZ) announced its performance forecast for the first half of 2024, with a net loss of RMB 0.39 billion - 0.48 billion attributable to shareholders of the listed company during the reporting period, compared with a profit of RMB 3.14 million in the same period last year; After deducting non-recurring gains and losses, the net loss is RMB 0.45 billion - 0.54 billion, compared with a loss of RMB 56.18 million in the same period last year; the basic loss per share is RMB 0.1609 - 0.1980.
In the first half of 2024, the steel market situation continued to decline, steel prices fell sharply, especially the price of building materials fell more, and raw material prices continued to run at a high level. The company's profit space narrowed, and the company's steel production and sales volume decreased due to the joint overhaul of blast furnace No.6. As a result of multiple adverse factors, although the company vigorously promoted lean operation, cost reduction and efficiency improvement, expense reduction, structural adjustment, and improvement of operation efficiency and other measures, production costs decreased significantly year-on-year, but it still failed to cover the impact of changes in sales volume and steel prices, resulting in a sharp year-on-year decline in the company's performance in this reporting period.