Lingyuan Iron & Steel Co Ltd

Lingyuan Iron and Steel released its 2026 interim report, with net profit attributable to the parent company at negative 808 million yuan, a loss expansion of 230 million yuan compared with the same period last year. The company's total operating revenue was 7.818 billion yuan, up 5.98 percent year on year, but net cash flow from operating activities was negative 112 million yuan, down 207.11 percent year on year. The company's latest asset-liability ratio was 78.42 percent, up 11.79 percentage points from the same period last year, with gross margin at negative 6.99 percent and return on equity at negative 24.67 percent.

Lingyuan Iron & Steel disclosed its earnings forecast, expecting a net loss attributable to shareholders of 770 million to 810 million yuan for the first half of 2026, compared with a loss of 578 million yuan in the same period last year. The net loss after deducting non-recurring items is expected to be 780 million to 820 million yuan, compared with a loss of 576 million yuan a year earlier. The company stated that the steel industry remains in a phase of reducing output, adjusting structure, and optimizing existing capacity, with supply exceeding demand. Steel prices fluctuated within a narrow range, while coal and coke prices rose significantly, squeezing profits through higher costs. Despite the company's all-out efforts to increase revenue, cut costs, and improve efficiency, it was unable to reverse the loss-making situation. Non-recurring gains and losses increased net profit by 11.29 million yuan compared with the same period last year.

On the evening of July 14, several listed steel companies including Bengang Steel Plates, Lingyuan Iron and Steel, and Maanshan Iron and Steel disclosed their first-half 2026 earnings forecasts, broadly anticipating losses. Among them, Bengang Steel Plates expects a net loss attributable to shareholders of the listed company of 1.89 billion yuan, with the loss widening by 35.07 percent year-on-year. Lingyuan Iron and Steel forecasts a net loss attributable to shareholders of the listed company of between 770 million and 810 million yuan, an increase in losses compared with the same period last year. Xining Special Steel expects a net loss attributable to owners of the parent of approximately 303 million yuan, with the loss widening by 69 million yuan year-on-year. Maanshan Iron and Steel anticipates a net loss attributable to shareholders of the listed company of around 72 million yuan, narrowing the loss by about 3 million yuan year-on-year. Earlier, Angang Steel and Chongqing Iron and Steel also warned of first-half losses, while Valin Steel, though forecasting a profit of 200 million to 300 million yuan, sees a year-on-year decline of 82.84 to 88.56 percent. The industry's downturn persists, with the contradiction of strong supply and weak demand becoming more pronounced, and high and firm prices for raw materials such as iron ore and coal serving as the core triggers for the losses.