On July 11th, Gelunhui reported that Shandong Iron and Steel (600022.SH) estimated that the net income attributable to the mother company's owners in the first half of 2024 would be between -0.89 billion yuan to -1.04 billion yuan, a decrease of 256.5% to 316.58% year-on-year. The net profit of deducting non-recurring gains and losses attributable to the owner of the parent company is -0.895 billion yuan to -1.045 billion yuan, a decrease of 126.62% to 164.6% year-on-year.
In the first half of 2024, the steel industry will face an evident situation of strong supply, weak demand, low prices and high costs, which will continuously compress the company's profit margins and reduce the purchase and sales difference significantly compared to the same period last year.
The company actively responded to the severe market situation, focused on the management theme of 'change for survival', comprehensively deepened management reform, persisted in accountable management, deepened lean management, implemented more than 100 change support projects from procurement, marketing, production operation, financial management, human resources and other aspects, and made full use of the major opportunities brought by Baoshan Iron & Steel's participation in our company's controlling subsidiary - Shandong Iron and Steel Group Rizhao Co., Ltd. With its advantages in management, technology, talent and resources, the cooperation and support were strengthened. The company's operating performance has been improving month by month, and the loss reduction in the second quarter compared to the first quarter exceeded 50%.
Through the management reform since the first half of the year, especially since the second quarter, the company completed the reform of the management institution, with a reduction ratio of more than 50% in the setting of management institutions. The two bases, Jinan Steel City and Rizhao Base, have accumulated synergies of approximately 0.21 billion yuan. In the future, the company will strengthen the implementation of a series of reform measures, and the effectiveness of the changes will continue to show.