CHONGQING IRON (01053) expects to achieve a net loss attributable to shareholders of the listed company of 179 million yuan in the first half of 2026.

Chongqing Iron (01053) announced that the company expects to incur a net loss attributable to shareholders of the listed company of 179 million yuan in the first half of 2026, an increase of 48 million yuan compared to the same period last year; it is expected to incur a net loss of 203 million yuan after deducting non-recurring gains and losses, an increase of 62 million yuan compared to the same period last year. On a quarterly basis, the net profit attributable to shareholders of the listed company in the second quarter of 2026 is expected to be 20 million yuan, turning a profit from the loss in the first quarter, with the company's operating fundamentals gradually improving each quarter. The main reasons for the performance changes in this period: (1) In the first half of 2026, the domestic steel market had weak supply and demand, with oversupply in the industry and narrowing price differentials in purchases and sales. The transportation cost of iron ore rose due to global geopolitical conflicts and maintenance of the Three Gorges Dam ship lock, with ore prices remaining firm, and coal prices rapidly increasing due to supply disturbances. In addition, the production and sales scale decreased in the first quarter, leading to an increased loss compared to the same period last year. (2) Facing the pressure of industry cyclicality, the company continued to deepen its comprehensive cost reduction and efficiency improvement special action, promoting a series of measures such as localized procurement, intensive production, and high-end product structure. Cost control and expense reduction were strictly implemented to offset the adverse impacts of market conditions. The effects of various operational improvement measures gradually emerged, with improvements quarter by quarter and a turnaround from loss to profit in the second quarter compared to the first quarter.