CHONGQING IRON(01053) issues profit warning. It is expected that the net loss attributable to shareholders for the first three quarters will decrease significantly to 2.1 billion to 2.3 billion yuan.

Chongqing Iron (01053) announced that, according to preliminary calculations by the finance department, it is expected to achieve a net loss attributable to the shareholders of the listed company of RMB 2.1 billion to RMB 2.3 billion in the first three quarters of 2025. Compared with the same period last year, it is expected to reduce the loss by RMB 11.2 billion to RMB 11.4 billion. It is expected to achieve a net loss attributable to the shareholders of the listed company after deducting non-recurring gains and losses of RMB 2.2 billion to RMB 2.4 billion in the first three quarters of 2025. Compared with the same period last year, it is expected to reduce the loss by RMB 11.1 billion to RMB 11.3 billion. The announcement stated that the main reasons for the significant reduction in expected losses are as follows: (1) "Cost reduction in procurement" and "increased profits in sales" empower each other, significantly improving profitability: On the procurement side, deepening localization layout, precise inventory control, optimizing QP structure (monthly storage ratio stable at over 50%), achieving precise cost reduction in procurement; on the sales side, through channel expansion, structural optimization, and adjustment of business models, pushing up the value positioning of plate and coil products, combined with an increase in the proportion of locked prices during market downturns, stable high-grade steel proportion, further enhancing product added value and competitiveness. (2) "Cost reduction" and "efficiency improvement" run in parallel, enhancing risk resistance capability: On the one hand, promoting lean management throughout the production process, controlling costs through technological optimization and efficient resource use, achieving a new high in solid waste utilization, achieving optimal iron consumption, and reducing coal mixing stickiness to a new low, steadily improving energy utilization efficiency, comprehensively reducing manufacturing costs; on the other hand, continuously promoting refined control, reaching a historical low in ore inventory, and continuously optimizing risk control capabilities.