Core Viewpoint - The steel sector has experienced a significant improvement in profitability during the third quarter, with key companies showing notable stock price increases. Group 1: Stock Performance - Maanshan Iron & Steel Co., Ltd. (00323) rose by 5.38%, reaching HKD 2.74 [1] - Chongqing Iron & Steel Co., Ltd. (601005) increased by 2.88%, reaching HKD 1.43 [1] - Ansteel Company Limited (000898) (00347) saw a rise of 1.83%, reaching HKD 2.22 [1] Group 2: Industry Profitability - According to Mysteel, the profitability rate of steel mills increased from 59% at the end of June to 64% by the end of August [1] - In September, steel prices did not rise as much as coking coal prices, leading to a decline in profitability rates, with an average of 62% for the third quarter, up 4.5 percentage points from the second quarter [1] - Longjiang Securities estimates that the net profit per ton for the steel industry in Q3 2025 will be 92 CNY, an increase of 14 CNY per ton compared to the previous quarter, placing it at the 68th percentile since 2021 [1] Group 3: Future Outlook - Longjiang Securities anticipates that the profit margin for iron ore will be significantly greater than that for coking coal in 2026, with the commencement of the Ximangdu project potentially providing opportunities [1] - The report indicates that the expectation of reduced production among steel companies remains unfulfilled, as high-frequency data shows insufficient willingness to cut production [1] - The industry is expected to see a sustained realization of supply-side contraction logic under differentiated production restrictions and graded management in 2026 [1]

Core Viewpoint - The steel sector has experienced a significant improvement in profitability during the third quarter, with a notable increase in profit margins for steel mills compared to previous quarters [1] Industry Summary - Steel stocks saw a rapid increase in share prices, with Maanshan Iron & Steel Co. rising by 5.38% to HKD 2.74, Chongqing Iron & Steel Co. increasing by 2.88% to HKD 1.43, and Ansteel Co. gaining 1.83% to HKD 2.22 [1] - According to Mysteel's statistics, the profitability rate of steel mills rose from 59% at the end of June to 64% by the end of August, although it declined in September due to steel prices not keeping pace with coking coal prices [1] - The average profitability rate for steel mills in the third quarter was 62%, which is an increase of 4.5 percentage points compared to the second quarter [1] - Longjiang Securities projects that the net profit per ton for the steel industry will reach CNY 92 in Q3 2025, reflecting a quarter-on-quarter increase of CNY 14 per ton, positioning it at the 68th percentile since 2021 [1] Future Outlook - Longjiang Securities anticipates that the profit margin for iron ore will have greater potential for reduction compared to coking coal, with the commissioning of the Ximangdu project in 2026 expected to provide opportunities for growth [1] - The report indicates that the expectation of reduced internal competition in the third quarter remains largely speculative, as steel companies show limited willingness to cut production based on high-frequency molten iron data [1] - The industry is expected to see a sustained realization of supply-side contraction logic under differentiated production restrictions and graded management in 2026 [1]

Market Performance - The Hong Kong stock market indices experienced a decline, with the Hang Seng Index falling by 0.79%, the Hang Seng Tech Index down by 1.76%, and the National Enterprises Index decreasing by 0.92% [1] - Gold stocks saw significant drops, with Tongguan Gold and Lingbao Gold falling over 6%, Zijin Mining and Chifeng Jilong Gold down over 5%, Zhaojin Mining down over 4%, and Zijin Gold International down over 2% [1] Capital Flow - Southbound funds recorded a net purchase of Hong Kong stocks amounting to 9.832 billion HKD, with the Shanghai-Hong Kong Stock Connect contributing 5.202 billion HKD and the Shenzhen-Hong Kong Stock Connect contributing 4.630 billion HKD [1] - China National Offshore Oil Corporation, Xiaomi Group-W, and China Mobile received net purchases of 1.046 billion HKD, 1.002 billion HKD, and 753 million HKD respectively [2] - Alibaba-W, Sunny Optical Technology, and SMIC faced net sales of 868 million HKD, 325 million HKD, and 234 million HKD respectively [2] Regulatory Changes - Starting from August 19, 2024, the Shanghai and Shenzhen Stock Exchanges will adjust the information disclosure mechanism for the Shanghai-Shenzhen-Hong Kong Stock Connect, which will include daily disclosures of total trading amounts and active securities [3]

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年10月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 鞍鋼股份有限公司(備註1) 呈交日期: 2025年11月4日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | H | | | 於香港聯交所上市 (註1) | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 00347 | 說明 | H股 | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 1,411,540,000 | RMB | | 1 RMB | | 1,411,540,000 | | 增加 / 減少 (-) | | | | | | RMB | | | | 本月底結存 | | | 1,411,540,000 | RMB | | 1 RMB | | 1,411,540,000 | FF301 第 2 頁 共 12 頁 v 1 ...

致：香港交易及結算所有限公司 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年10月31日 狀態: 新提交 | 2. 股份分類 | 普通股 | 股份類別 | A | | 於香港聯交所上市 (註1) | | 否 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 000898 | 說明 | | A股（深圳證券交易所） | | | | | | | | 法定/註冊股份數目 | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 7,957,681,258 | RMB | | 1 RMB | | 7,957,681,258 | | 增加 / 減少 (-) | | | 0 | | | RMB | | 0 | | 本月底結存 | | | 7,957,681,258 | RMB | | 1 RMB | | 7,957,681,258 | 本月底法定/註冊股本總額： RMB 9,369,221,258 公司名稱: 鞍鋼股份有限公司(備註1) 呈交日期: ...

Core Viewpoint - Ansteel Co., Ltd. has shown a mixed performance in stock price and financial results, with a notable increase in net profit despite a decline in revenue [1][2]. Financial Performance - As of September 30, 2025, Ansteel reported operating revenue of 73.092 billion yuan, a year-on-year decrease of 7.78% [2]. - The company recorded a net profit attributable to shareholders of -2.040 billion yuan, which represents a year-on-year increase of 59.87% [2]. Stock Performance - Ansteel's stock price increased by 13.33% year-to-date, with a recent trading price of 2.72 yuan per share [1]. - Over the last 60 days, the stock price has risen by 1.12%, while it remained unchanged over the last 5 trading days [1]. Shareholder Information - As of September 30, 2025, the number of shareholders decreased by 0.45% to 95,700 [2]. - The average circulating shares per person remained at 0 shares, unchanged from the previous period [2]. Dividend Distribution - Ansteel has cumulatively distributed dividends of 21.437 billion yuan since its A-share listing, with 6.392 million yuan distributed in the last three years [3]. Institutional Holdings - As of September 30, 2025, Hong Kong Central Clearing Limited is the sixth-largest circulating shareholder, holding 77.9972 million shares, an increase of 25.3221 million shares from the previous period [3]. - The Southern CSI 500 ETF is the seventh-largest circulating shareholder, holding 34.9382 million shares, a decrease of 0.8428 million shares [3]. - Guotai CSI Steel ETF is a new entrant among the top ten circulating shareholders, holding 24.0346 million shares [3].

Core Insights - Ansteel Co., Ltd. reported a total revenue of 73.092 billion yuan for Q3 2025, a year-on-year decrease of 7.78%, while the net profit attributable to shareholders was -2.04 billion yuan, an increase of 59.87% year-on-year [1] - The company's gross margin improved significantly, with a year-on-year increase of 103.82%, and the net margin also saw a year-on-year increase of 57.44% [1] - The company is focusing on high-end, intelligent, and green development, aiming to integrate new information technology with production and management processes [4] Financial Performance - Q3 revenue was 24.493 billion yuan, showing a year-on-year increase of 2.86%, while the net profit for the quarter was -896 million yuan, up 62.59% year-on-year [1] - The total expenses for sales, management, and finance amounted to 1.532 billion yuan, accounting for 2.1% of revenue, with a year-on-year increase of 9.44% [1] - Earnings per share were -0.22 yuan, reflecting a year-on-year increase of 59.78% [1] Financial Changes - Financial expenses increased by 40.56% due to an increase in financing scale [2] - Other income rose by 70.24% due to increased government subsidies and tax benefits [2] - Asset impairment losses decreased by 55.49% as the provision for inventory write-downs was lower than the previous year [2] Operational Strategies - The company has implemented measures to enhance operational efficiency and reduce costs, including adjusting product mix and optimizing procurement strategies [2][5] - The net cash flow from operating activities increased by 728.75% due to a rise in net profit and changes in accounts receivable [5] - Future plans include a focus on high-tech, high-value-added products and green manufacturing practices [4]

Market Overview - The Hang Seng Index fell by 0.89%, down 232 points, closing at 26,050 points, while the Hang Seng Tech Index dropped by 1.91% [1] - The early trading volume in the Hong Kong stock market reached HKD 142.3 billion [1] Biotechnology Sector - The Hang Seng Biotechnology Index rebounded by 2.16%, with notable gains in several stocks: - InnoCare Pharma (09606) surged by 10.88% - 3SBio (01530) increased by over 10% - Innovent Biologics rose by 6.82% - Kelun-Biotech (06990) gained 5.69% [1] - Fosen Pharmaceuticals (01652) saw a significant increase, with a peak rise of nearly 74% and an early gain of 59.42% following the approval of Enzalutamide soft capsules and the potential selection of Metformin and Empagliflozin for national procurement [1] - Rongchang Biopharma (09995) rose by 6.75%, reporting a 40% year-on-year revenue growth and a significant reduction in losses for the first three quarters [1] Medical Sector - Spring Medical (01858) increased by over 21%, turning a profit of HKD 77.06 million in the third quarter as the company actively expands its international market [2] New Stocks Performance - Newly listed Dipo Technology (01384) continued to rise, gaining 18.97% and doubling its stock price within three days of listing [3] Financial Sector - China Everbright Bank (06818) fell by 5% post-earnings, with both revenue and profit declining in the third quarter, facing pressure from fair value changes [4] Other Notable Stocks - Huahao Zhongtian Pharmaceutical-B (02563) experienced a significant drop of over 37% due to a large unlock of shares after one year of listing [5] - Lion Holdings (02562) plummeted over 24% to a new low, planning to issue convertible bonds to raise approximately HKD 260 million for investments in gold and related products [6] - Air China (00753) dropped over 8%, with a more than 11% decline in net profit for the third quarter, and plans to raise up to HKD 20 billion through A-share placement [7]

Core Viewpoint - Ansteel Corporation (00347) experienced a decline of over 7%, with a current drop of 7.17%, trading at HKD 2.07, with a transaction volume of HKD 37.85 million [1] Financial Performance Summary - For the first three quarters of 2025, Ansteel reported an operating revenue of RMB 73.092 billion, a year-on-year decrease of 7.78% [1] - The net loss attributable to shareholders narrowed to RMB 2.04 billion, a year-on-year reduction of 59.87% [1] - In the third quarter alone, the company achieved an operating revenue of RMB 24.493 billion, reflecting a year-on-year growth of 2.86% [1] - The net loss for the third quarter was approximately RMB 896 million, which represents a year-on-year narrowing of 62.59% [1]

Core Insights - Company reported a total operating revenue of 73.092 billion yuan, ranking 5th among disclosed peers [1] - The net profit attributable to shareholders was -2.04 billion yuan, an increase of 3.044 billion yuan compared to the same period last year [1] - Operating cash flow was 1.968 billion yuan, ranking 10th among disclosed peers, with an increase of 2.281 billion yuan year-on-year [1] Financial Metrics - The latest debt-to-asset ratio is 52.00%, ranking 6th among disclosed peers [3] - The latest gross profit margin is 0.14%, an increase of 3.68 percentage points compared to the same period last year [3] - The latest return on equity (ROE) is -4.46%, an increase of 5.78 percentage points year-on-year [3] - The diluted earnings per share (EPS) is -0.22 yuan, an increase of 0.32 yuan compared to the same period last year [3] - The total asset turnover ratio is 0.74 times, ranking 8th among disclosed peers [3] - The inventory turnover ratio is 5.42 times, an increase of 0.29 times year-on-year, representing a 5.56% increase [3] Shareholder Structure - The number of shareholders is 95,700, with the top ten shareholders holding 7.671 billion shares, accounting for 81.88% of the total share capital [3] - The largest shareholder is Anshan Iron and Steel Group Co., Ltd. with 5.39 billion shares [3] - Other significant shareholders include Hong Kong Central Clearing (Agent) Co., Ltd. with 1.49 billion shares and China National Petroleum Corporation with 902 million shares [3]