Report Overview [Filing Information](index=1&type=section&id=Filing%20Information) Grupo Simec filed a Form 6-K for June 2025 as a foreign private issuer under Form 20-F, signed by the CEO on July 25, 2025 - Grupo Simec, S.A.B. de C.V. filed a Form 6-K for June 2025, confirming its status as a foreign private issuer filing under Form 20-F[1](index=1&type=chunk)[2](index=2&type=chunk) - The report was signed by Sergio Vigil González, Chief Executive Officer, on July 25, 2025[4](index=4&type=chunk) [Earnings Announcement](index=3&type=section&id=Earnings%20Announcement) Grupo Simec, S.A.B. de C.V. announced its operational results for the six-month period ended June 30, 2025, through a press release issued on July 25, 2025 - Grupo Simec announced its results of operations for the six-month period ended June 30, 2025, on July 25, 2025[5](index=5&type=chunk) Financial Performance Analysis [First Six Months 2025 vs. 2024](index=3&type=section&id=First%20Six%20Months%202025%20vs.%202024) Grupo Simec saw significant 1H 2025 declines in net income and operating profit versus 1H 2024, primarily from decreased steel shipments and a substantial shift to comprehensive financial cost - The decrease in operating profit is mainly due to less shipments of finished steel products[11](index=11&type=chunk) - The Company recorded a decrease in net income of **94%** from **Ps. 5,435 million** in the first half of 2024 to **Ps. 304 million** in the same period of 2025[16](index=16&type=chunk) - Comprehensive financial cost for the first half of 2025 represented an expense of **Ps. 1,845 million** compared with a net income of **Ps. 2,809 million** for the first half of 2024, primarily due to an exchange loss[14](index=14&type=chunk) [Net Sales](index=3&type=section&id=Net%20Sales_1H_YoY) Net Sales Performance (1H 2025 vs. 1H 2024) | Metric | 1H 2025 (Ps. million) | 1H 2024 (Ps. million) | Change (%) | | :----------------------------- | :-------------------- | :-------------------- | :--------- | | Net Sales | 14,835 | 16,279 | (9)% | | Shipments (Thousand Tons) | 901 | 1,015 | (11)% | | Average Sales Price | - | - | 3% (higher)| | Sales Outside Mexico | 6,573 | 7,287 | (10)% | | Sales in Mexico | 8,262 | 8,992 | (8)% | [Cost of Sales](index=3&type=section&id=Cost%20of%20Sales_1H_YoY) Cost of Sales Performance (1H 2025 vs. 1H 2024) | Metric | 1H 2025 (Ps. million) | 1H 2024 (Ps. million) | Change (%) | | :-------------------------------- | :-------------------- | :-------------------- | :--------- | | Cost of Sales | 11,167 | 12,232 | (9)% | | Cost of Sales as % of Net Sales | 75% | 75% | 0% | | Average Cost of Finished Steel | - | - | 3% (higher)| [Gross Profit](index=3&type=section&id=Gross%20Profit_1H_YoY) Gross Profit Performance (1H 2025 vs. 1H 2024) | Metric | 1H 2025 (Ps. million) | 1H 2024 (Ps. million) | Change (%) | | :----------- | :-------------------- | :-------------------- | :--------- | | Gross Profit | 3,668 | 4,047 | (9)% | | Gross Margin | 25% | 25% | 0% | [Selling, General and Administrative Expenses](index=3&type=section&id=Selling%2C%20General%20and%20Administrative%20Expenses_1H_YoY) SG&A Expenses (1H 2025 vs. 1H 2024) | Metric | 1H 2025 (Ps. million) | 1H 2024 (Ps. million) | Change (%) | | :-------------------------------- | :-------------------- | :-------------------- | :--------- | | SG&A Expenses | 1,307 | 1,176 | 11% | | SG&A as % of Net Sales | 9% | 7% | 2% pts | [Other Income (Expenses), net](index=3&type=section&id=Other%20Income%20%28Expenses%29%2C%20net_1H_YoY) Other Income (Expenses), net (1H 2025 vs. 1H 2024) | Metric | 1H 2025 (Ps. million) | 1H 2024 (Ps. million) | Change (%) | | :------------------------ | :-------------------- | :-------------------- | :--------- | | Other Income (Expenses), net | 263 | 45 | 484% | [Operating Profit](index=3&type=section&id=Operating%20Profit_1H_YoY) Operating Profit Performance (1H 2025 vs. 1H 2024) | Metric | 1H 2025 (Ps. million) | 1H 2024 (Ps. million) | Change (%) | | :--------------- | :-------------------- | :-------------------- | :--------- | | Operating Profit | 2,624 | 2,916 | (10)% | | Operating Margin | 18% | 18% | 0% | [EBITDA](index=4&type=section&id=EBITDA_1H_YoY) Consolidated EBITDA (1H 2025 vs. 1H 2024) | Consolidated (Ps. million) | 2025 | 2024 | Change (%) | | :------------------------- | :--- | :--- | :--------- | | Net income (loss) | 304 | 5,435| (94)% | | Depreciation and amortization | 541 | 497 | 8.9% | | Income taxes | 476 | 291 | 63.6% | | Financial results (income) loss | 1,845| (2,809)| N/C | | EBITDA | 3,165| 3,413| (7)% | [Comprehensive Financial Cost](index=4&type=section&id=Comprehensive%20Financial%20Cost_1H_YoY) Comprehensive Financial Cost (1H 2025 vs. 1H 2024) | Metric | 1H 2025 (Ps. million) | 1H 2024 (Ps. million) | Change | | :-------------------------- | :-------------------- | :-------------------- | :----- | | Comprehensive Financial Cost | 1,845 (expense) | 2,809 (income) | Shift from income to expense | | Exchange (Loss) Income | (2,332) (loss) | 2,030 (income) | Shift from income to loss | | Net Interest Income | 487 | 737 | (34)% | [Income Taxes](index=4&type=section&id=Income%20Taxes_1H_YoY) Income Taxes (1H 2025 vs. 1H 2024) | Metric | 1H 2025 (Ps. million) | 1H 2024 (Ps. million) | Change (%) | | :---------------- | :-------------------- | :-------------------- | :--------- | | Net Tax Expense | 476 | 291 | 63.6% | | Current Tax Expense | 383 | 412 | (7)% | | Deferred Tax (Expense) Income | 93 (expense) | (121) (income) | Shift from income to expense | [Net Income](index=4&type=section&id=Net%20Income_1H_YoY) Net Income Performance (1H 2025 vs. 1H 2024) | Metric | 1H 2025 (Ps. million) | 1H 2024 (Ps. million) | Change (%) | | :--------- | :-------------------- | :-------------------- | :--------- | | Net Income | 304 | 5,435 | (94)% | [Second Quarter 2025 vs. First Quarter 2025](index=4&type=section&id=Second%20Quarter%202025%20vs.%20First%20Quarter%202025) In Q2 2025, Grupo Simec experienced a significant deterioration in financial performance compared to Q1 2025, reporting a net loss of Ps. 1,000 million, a sharp decline from a net income of Ps. 1,305 million in the previous quarter, primarily driven by decreased net sales, lower shipments, and a substantial increase in comprehensive financial cost due to exchange losses - Net sales decreased **9%** in Q2 2025 compared to Q1 2025, mainly due to lower shipments of finished steel products (**11%**)[17](index=17&type=chunk) - The Company recorded a decrease in net income from **Ps. 1,305 million** in Q1 2025 to a net loss of **Ps. 1,000 million** for Q2 2025[29](index=29&type=chunk) - Comprehensive financial cost in Q2 2025 was an expense of **Ps. 1,902 million**, a significant shift from a net income of **Ps. 57 million** in Q1 2025, primarily due to a net exchange loss of **Ps. 2,176 million**[27](index=27&type=chunk) [Net Sales](index=4&type=section&id=Net%20Sales_QoQ) Net Sales Performance (Q2 2025 vs. Q1 2025) | Metric | Q2 2025 (Ps. million) | Q1 2025 (Ps. million) | Change (%) | | :----------------------------- | :-------------------- | :-------------------- | :--------- | | Net Sales | 7,052 | 7,783 | (9)% | | Shipments (Thousand Tons) | 425 | 476 | (11)% | | Average Sales Price | - | - | 1% (higher)| | Sales Outside Mexico | 3,104 | 3,469 | (11)% | | Domestic Sales | 3,948 | 4,314 | (8)% | [Cost of Sales](index=5&type=section&id=Cost%20of%20Sales_QoQ) Cost of Sales Performance (Q2 2025 vs. Q1 2025) | Metric | Q2 2025 (Ps. million) | Q1 2025 (Ps. million) | Change (%) | | :-------------------------------- | :-------------------- | :-------------------- | :--------- | | Cost of Sales | 5,381 | 5,786 | (7)% | | Cost of Sales as % of Net Sales | 76% | 74% | 2% pts | | Average Cost of Sales per Ton | - | - | 4% (increase)| [Gross Profit](index=5&type=section&id=Gross%20Profit_QoQ) Gross Profit Performance (Q2 2025 vs. Q1 2025) | Metric | Q2 2025 (Ps. million) | Q1 2025 (Ps. million) | Change (%) | | :----------- | :-------------------- | :-------------------- | :--------- | | Gross Profit | 1,671 | 1,997 | (16)% | | Gross Margin | 24% | 26% | (2)% pts | [Selling, General and Administrative Expense](index=5&type=section&id=Selling%2C%20General%20and%20Administrative%20Expense_QoQ) SG&A Expense (Q2 2025 vs. Q1 2025) | Metric | Q2 2025 (Ps. million) | Q1 2025 (Ps. million) | Change (%) | | :-------------------------------- | :-------------------- | :-------------------- | :--------- | | SG&A Expense | 674 | 633 | 6% | | SG&A as % of Net Sales | 10% | 8% | 2% pts | [Other (Expenses) Income, net](index=5&type=section&id=Other%20%28Expenses%29%20Income%2C%20net_QoQ) Other (Expenses) Income, net (Q2 2025 vs. Q1 2025) | Metric | Q2 2025 (Ps. million) | Q1 2025 (Ps. million) | Change (%) | | :------------------------ | :-------------------- | :-------------------- | :--------- | | Other Income (Expenses), net | 201 | 62 | 224% | [Operating Income](index=5&type=section&id=Operating%20Income_QoQ) Operating Income Performance (Q2 2025 vs. Q1 2025) | Metric | Q2 2025 (Ps. million) | Q1 2025 (Ps. million) | Change (%) | | :--------------- | :-------------------- | :-------------------- | :--------- | | Operating Income | 1,198 | 1,426 | (16)% | | Operating Margin | 17% | 18% | (1)% pts | [EBITDA](index=5&type=section&id=EBITDA_QoQ) Consolidated EBITDA (Q2 2025 vs. Q1 2025) | Consolidated (Ps. million) | Q2 2025 | Q1 2025 | Change (%) | | :------------------------- | :------ | :------ | :--------- | | Net income (loss) | (1,000) | 1,305 | N/C |\ | Depreciation and amortization | 275 | 266 | 3.4% |\ | Income taxes | 297 | 179 | 65.9% |\ | Financial results (income) loss | 1,902 | (57) | N/C |\ | EBITDA | 1,473 | 1,692 | (13)% | [Comprehensive Financial Cost](index=6&type=section&id=Comprehensive%20Financial%20Cost_QoQ) Comprehensive Financial Cost (Q2 2025 vs. Q1 2025) | Metric | Q2 2025 (Ps. million) | Q1 2025 (Ps. million) | Change | | :-------------------------- | :-------------------- | :-------------------- | :----- | | Comprehensive Financial Cost | 1,902 (expense) | 57 (income) | Shift from income to expense | | Net Interest Income | 274 | 213 | 28.6% | | Net Exchange Loss | (2,176) | (156) | 1295% | [Income Taxes](index=6&type=section&id=Income%20Taxes_QoQ) Income Taxes (Q2 2025 vs. Q1 2025) | Metric | Q2 2025 (Ps. million) | Q1 2025 (Ps. million) | Change (%) | | :---------------- | :-------------------- | :-------------------- | :--------- | | Income Tax Expense | 297 | 179 | 65.9% | | Current Tax Expense | 197 | 186 | 5.9% | | Deferred Tax (Expense) Income | 100 (expense) | (7) (income) | Shift from income to expense | [Net Income](index=6&type=section&id=Net%20Income_QoQ) Net Income Performance (Q2 2025 vs. Q1 2025) | Metric | Q2 2025 (Ps. million) | Q1 2025 (Ps. million) | Change | | :--------- | :-------------------- | :-------------------- | :----- | | Net Income | (1,000) (loss) | 1,305 (income) | Shift from income to loss | [Second Quarter 2025 vs. Second Quarter 2024](index=6&type=section&id=Second%20Quarter%202025%20vs.%20Second%20Quarter%202024) In Q2 2025, Grupo Simec reported a net loss of Ps. 1,000 million, a significant reversal from a net profit of Ps. 3,979 million in Q2 2024, primarily driven by a 16% decrease in net sales due to lower shipment volumes, increased SG&A expenses, and a dramatic shift from comprehensive financial income to a large financial cost, mainly from exchange losses - Net sales decreased **16%** in Q2 2025 compared to Q2 2024, primarily due to a **21%** decrease in finished steel product shipments, despite a **6%** increase in average sales price[31](index=31&type=chunk) - The Company recorded a net loss of **Ps. 1,000 million** in Q2 2025 compared to **Ps. 3,979 million** of net profit in Q2 2024[41](index=41&type=chunk) - Comprehensive financial cost for Q2 2025 was a net expense of **Ps. 1,902 million**, a significant shift from a net income of **Ps. 2,662 million** for Q2 2024, largely due to an exchange loss of **Ps. 2,176 million**[39](index=39&type=chunk) [Net Sales](index=6&type=section&id=Net%20Sales_QoQ_YoY) Net Sales Performance (Q2 2025 vs. Q2 2024) | Metric | Q2 2025 (Ps. million) | Q2 2024 (Ps. million) | Change (%) | | :----------------------------- | :-------------------- | :-------------------- | :--------- | | Net Sales | 7,052 | 8,394 | (16)% | | Shipments (Thousand Tons) | 425 | 536 | (21)% | | Average Sales Price | - | - | 6% (increase)| | Sales Outside Mexico | 3,104 | 3,593 | (14)% | | Domestic Sales | 3,948 | 4,801 | (18)% | [Cost of Sales](index=6&type=section&id=Cost%20of%20Sales_QoQ_YoY) Cost of Sales Performance (Q2 2025 vs. Q2 2024) | Metric | Q2 2025 (Ps. million) | Q2 2024 (Ps. million) | Change (%) | | :-------------------------------- | :-------------------- | :-------------------- | :--------- | | Cost of Sales | 5,381 | 6,356 | (15)% | | Cost of Sales as % of Net Sales | 76% | 76% | 0% | | Average Cost of Sales by Ton | - | - | 7% (increase)| [Gross (Loss) Profit](index=7&type=section&id=Gross%20%28Loss%29%20Profit_QoQ_YoY) Gross Profit Performance (Q2 2025 vs. Q2 2024) | Metric | Q2 2025 (Ps. million) | Q2 2024 (Ps. million) | Change (%) | | :----------- | :-------------------- | :-------------------- | :--------- | | Gross Profit | 1,671 | 2,038 | (18)% | | Gross Margin | 24% | 24% | 0% | - The decrease in gross profit is mainly due to a lower volume of finished steel products shipped[33](index=33&type=chunk) [Selling, General and Administrative Expense](index=7&type=section&id=Selling%2C%20General%20and%20Administrative%20Expense_QoQ_YoY) SG&A Expenses (Q2 2025 vs. Q2 2024) | Metric | Q2 2025 (Ps. million) | Q2 2024 (Ps. million) | Change (%) | | :-------------------------------- | :-------------------- | :-------------------- | :--------- | | SG&A Expenses | 674 | 580 | 16% | | SG&A as % of Net Sales | 10% | 7% | 3% pts | [Other Income (Expenses), net](index=7&type=section&id=Other%20Income%20%28Expenses%29%2C%20net_QoQ_YoY) Other Income (Expenses), net (Q2 2025 vs. Q2 2024) | Metric | Q2 2025 (Ps. million) | Q2 2024 (Ps. million) | Change (%) | | :------------------------ | :-------------------- | :-------------------- | :--------- | | Other Income (Expenses), net | 201 | 40 | 403% | [Operating (Loss) Income](index=7&type=section&id=Operating%20%28Loss%29%20Income_QoQ_YoY) Operating Income Performance (Q2 2025 vs. Q2 2024) | Metric | Q2 2025 (Ps. million) | Q2 2024 (Ps. million) | Change (%) | | :--------------- | :-------------------- | :-------------------- | :--------- | | Operating Income | 1,198 | 1,498 | (20)% | | Operating Margin | 17% | 18% | (1)% pts | - The decrease in operating profit was due to a lower volume of finished steel products shipped[36](index=36&type=chunk) [EBITDA](index=7&type=section&id=EBITDA_QoQ_YoY) Consolidated EBITDA (Q2 2025 vs. Q2 2024) | Consolidated (Ps. million) | Q2 2025 | Q2 2024 | Change (%) | | :------------------------- | :------ | :------ | :--------- | | Net income (loss) | (1,000) | 3,979 | N/C |\ | Depreciation and amortization | 275 | 249 | 10.4% |\ | Income taxes | 297 | 181 | 63.9% |\ | Financial results (income) loss | 1,902 | (2,662) | N/C |\ | EBITDA | 1,473 | 1,747 | (16)% | [Comprehensive Financial Cost](index=7&type=section&id=Comprehensive%20Financial%20Cost_QoQ_YoY) Comprehensive Financial Cost (Q2 2025 vs. Q2 2024) | Metric | Q2 2025 (Ps. million) | Q2 2024 (Ps. million) | Change | | :-------------------------- | :-------------------- | :-------------------- | :----- | | Comprehensive Financial Cost | 1,902 (expense) | 2,662 (income) | Shift from income to expense | | Net Interest Income | 274 | 487 | (43.7)%|\ | Exchange (Loss) Income | (2,176) (loss) | 2,133 (income) | Shift from income to loss | [Income Taxes](index=8&type=section&id=Income%20Taxes_QoQ_YoY) Income Taxes (Q2 2025 vs. Q2 2024) | Metric | Q2 2025 (Ps. million) | Q2 2024 (Ps. million) | Change (%) | | :---------------- | :-------------------- | :-------------------- | :--------- | | Net Tax Expense | 297 | 181 | 63.9% | | Deferred Tax (Expense) Income | 100 (expense) | (113) (income) | Shift from income to expense | [Net Income (Loss)](index=8&type=section&id=Net%20Income%20%28Loss%29_QoQ_YoY) Net Income (Loss) Performance (Q2 2025 vs. Q2 2024) | Metric | Q2 2025 (Ps. million) | Q2 2024 (Ps. million) | Change | | :--------- | :-------------------- | :-------------------- | :----- | | Net Income | (1,000) (loss) | 3,979 (profit) | Shift from profit to loss | [Summary Financial Tables](index=8&type=section&id=Summary%20Financial%20Tables) The summary tables provide a consolidated view of Grupo Simec's financial performance for the first semester and second quarter of 2025, alongside comparative data for 2024 and Q1 2025. Key trends include significant declines in sales, operating profit, EBITDA, and net income across all comparative periods, primarily driven by reduced shipment volumes and adverse financial costs [First Semester Comparative Data](index=8&type=section&id=First%20Semester%20Comparative%20Data) First Semester Financial Performance (1H 2025 vs. 1H 2024) | (Ps. million) | 1H '25 | 1H '24 | Year 25 VS' 24 | | :-------------------------------- | :----- | :----- | :------------- | | Sales | 14,835 | 16,279 | (9)% | | Cost of Sales | 11,167 | 12,232 | (9)% | | Gross Profit | 3,668 | 4,047 | (9)% | | Selling, General and Administrative Expense | 1,307 | 1,176 | 11% | | Other Income (Expenses), net | 263 | 45 | 484% | | Operating Profit | 2,624 | 2,916 | (10)% | | EBITDA | 3,165 | 3,413 | (7)% | | Net income | 304 | 5,435 | (94)% | | Sales Outside Mexico | 6,573 | 7,287 | (10)% | | Sales in Mexico | 8,262 | 8,992 | (8)% | | Total Sales (Thousand Tons) | 901 | 1,015 | (11)% | [Quarterly Comparative Data](index=8&type=section&id=Quarterly%20Comparative%20Data) Quarterly Financial Performance (Q2 2025 vs. Q1 2025 vs. Q2 2024) | (Ps. million) | 2Q'25 | 1Q '25 | 2Q '24 | 2Q´25 vs 1Q´25 | 2Q´25 vs 2Q ´24 | | :-------------------------------- | :---- | :----- | :----- | :------------- | :------------- | | Sales | 7,052 | 7,783 | 8,394 | (9)% | (16)% | | Cost of Sales | 5,381 | 5,786 | 6,356 | (7)% | (15)% | | Gross Profit | 1,671 | 1,997 | 2,038 | (16)% | (18)% | | Selling, General and Adm. Expenses | 674 | 633 | 580 | 6% | 16% | | Other Income (Expenses), net | 201 | 62 | 40 | 224% | 403% | | Operating Profit | 1,198 | 1,426 | 1,498 | (16)% | (20)% | | EBITDA | 1,473 | 1,692 | 1,747 | (13)% | (16)% | | Net Income | (1,000)| 1,305 | 3,979 | N/C | N/C | | Sales Outside Mexico | 3,104 | 3,469 | 3,593 | (11)% | (14)% | | Sales in Mexico | 3,948 | 4,314 | 4,801 | (8)% | (18)% | | Total Sales (Thousand Tons) | 425 | 476 | 536 | (11)% | (21)% | [Product Sales Data](index=9&type=section&id=Product%20Sales%20Data) Product Sales Data (Jan-Jun 2025 vs. Jan-Jun 2024) | Product | Thousands of Tons Jan-Jun 2025 | Ps. million Jan-Jun 2025 | Average Price per Ton Jan-Jun 2025 | Thousands of Tons Jan-Jun 2024 | Ps. million Jan-Jun 2024 | Average Price per Ton Jan-Jun 2024 | | :---------------------- | :----------------------------- | :----------------------------- | :--------------------------------- | :----------------------------- | :----------------------------- | :--------------------------------- | | Commercial Long Steel | 642 | 9,503 | 14,802 | 744 | 11,191 | 15,042 | | Special Bar Quality SBQ | 259 | 5,332 | 20,587 | 271 | 5,088 | 18,775 | | Total | 901 | 14,835 | 16,465 | 1,015 | 16,279 | 16,038 | Product Sales Data (Q2 2025 vs. Q1 2025 vs. Q2 2024) | Product | Thousands of Tons Apr-Jun 2025 | Ps. million Apr-Jun 2025 | Average Price per Ton Apr-Jun 2025 | Thousands of Tons Jan-Mar 2025 | Ps. million Jan-Mar 2025 | Average Price per Ton Jan-Mar 2025 | Thousands of Tons Apr-Jun 2024 | Ps. million Apr-Jun 2024 | Average Price per Ton Apr-Jun 2024 | | :---------------------- | :----------------------------- | :----------------------------- | :--------------------------------- | :----------------------------- | :----------------------------- | :--------------------------------- | :----------------------------- | :----------------------------- | :--------------------------------- | | Commercial Long Steel | 319 | 4,855 | 15,219 | 360 | 5,374 | 14,928 | 392 | 5,756 | 14,684 | | Special Bar Quality SBQ | 106 | 2,197 | 20,726 | 116 | 2,409 | 20,767 | 144 | 2,638 | 18,319 | | Total | 425 | 7,052 | 16,593 | 476 | 7,783 | 16,351 | 536 | 8,394 | 15,660 | Financial Statements [Statements of Financial Position](index=10&type=section&id=Statements%20of%20Financial%20Position) As of June 30, 2025, Grupo Simec's total assets decreased slightly to Ps. 71.3 billion from Ps. 73.3 billion at the previous year-end, mainly driven by a decrease in cash and cash equivalents and a reduction in total current liabilities, while total equity saw a modest increase Statements of Financial Position (As of June 30, 2025 vs. December 31, 2024) | Account | Ending Current Quarter (Ps. thousand) | Ending Previous Year (Ps. thousand) | | :-------------------------- | :------------------------------------ | :---------------------------------- | | TOTAL ASSETS | 71,297,240 | 73,298,400 | | TOTAL CURRENT ASSETS | 46,475,998 | 48,376,308 | | CASH AND CASH EQUIVALENTS | 27,503,193 | 29,158,227 | | TRADE RECEIVABLES, NET | 4,469,275 | 4,491,623 | | INVENTORIES | 10,740,555 | 11,164,370 | | TOTAL NON-CURRENT ASSETS | 24,821,242 | 24,922,092 | | PROPERTY, PLANT AND EQUIPMENT, NET | 20,380,573 | 19,630,424 | | TOTAL LIABILITIES | 11,639,174 | 14,056,389 | | TOTAL CURRENT LIABILITIES | 7,779,592 | 10,199,924 | | TRADE PAYABLES | 2,843,348 | 4,166,934 | | TOTAL NON-CURRENT LIABILITIES | 3,859,582 | 3,856,465 | | DEFERRED TAX LIABILITIES | 3,686,944 | 3,668,882 | | TOTAL EQUITY | 59,658,066 | 59,242,011 | | RETAINED EARNINGS | 52,872,672 | 42,384,854 | | NET INCOME FOR THE PERIOD | 304,297 | 10,487,818 | Informational Data (As of June 30, 2025 vs. December 31, 2024) | Informational data | Ending Current Quarter (Ps. thousand) | Ending Previous Year (Ps. thousand) | | :------------------------- | :--------------------- | :------------------- | | SHORT-TERM FOREIGN CURRENCY LIABILITIES | 3,962,931 | 3,962,931 | | LONG-TERM FOREIGN CURRENCY LIABILITIES | 488,242 | 488,242 | | OUTSTANDING SHARES (+) | 497,709,214 | 497,709,214 | | REPURCHASED SHARES (+) | 37,080,000 | 36,716,000 | [Statements of Comprehensive Income](index=13&type=section&id=Statements%20of%20Comprehensive%20Income) Grupo Simec's Statements of Comprehensive Income show a significant decline in profitability for both the accumulated six-month period and the second quarter of 2025 compared to the previous year. Net profit attributable to owners of parent decreased by 94% for the six-month period and shifted to a net loss for Q2 2025, primarily due to a substantial increase in finance costs driven by exchange losses Statements of Comprehensive Income (Current Year vs. Previous Year) | (Ps. thousand) | CURRENT YEAR ACCUMULATED | CURRENT YEAR QUARTER | PREVIOUS YEAR ACCUMULATED | PREVIOUS YEAR QUARTER | | :-------------------------------- | :----------------------- | :------------------- | :------------------------ | :-------------------- | | REVENUE | 14,834,750 | 7,052,139 | 16,278,981 | 8,393,523 | | COST OF SALES | 11,166,978 | 5,380,759 | 12,232,354 | 6,355,950 | | GROSS PROFIT | 3,667,772 | 1,671,380 | 4,046,627 | 2,037,573 | | GENERAL EXPENSES | 1,307,231 | 674,588 | 1,175,723 | 580,767 | | OPERATING PROFIT (LOSS) (*) | 2,624,316 | 1,198,262 | 2,916,183 | 1,497,562 | | FINANCE INCOME (COSTS), NET | (1,845,243) | (1,902,227) | 2,808,859 | 2,661,834 | | PROFIT (LOSS) BEFORE INCOME TAX | 779,073 | (703,965) | 5,725,042 | 4,159,396 | | INCOME TAX EXPENSE | 475,882 | 296,882 | 290,908 | 180,777 | | NET PROFIT (LOSS) | 303,191 | (1,000,847) | 5,434,134 | 3,978,619 | | PROFIT (LOSS) ATTRIBUTABLE TO OWNERS OF PARENT | 304,297 | (1,000,380) | 5,435,369 | 3,979,068 | | BASIC EARNINGS (LOSS) PER SHARE | 0.61 | (2.01) | 10.92 | 7.99 | Other Comprehensive Income (Net of Income Tax) | OTHER COMPREHENSIVE INCOME (NET OF INCOME TAX) | CURRENT YEAR ACCUMULATED | CURRENT YEAR QUARTER | PREVIOUS YEAR ACCUMULATED | PREVIOUS YEAR QUARTER | | :--------------------------------------------- | :----------------------- | :------------------- | :------------------------ | :-------------------- | | NET PROFIT (LOSS) | 303,191 | (1,000,847) | 5,434,134 | 3,978,619 | | FOREING CURRENCY TRANSLATION | 69,281 | (1,249,693) | (520,854) | (374,527) | | TOTAL OTHER COMPREHENSIVE INCOME | 177,809 | (1,249,693) | (520,854) | (374,527) | | TOTAL COMPREHENSIVE INCOME | 481,000 | (2,250,540) | 4,913,280 | 3,604,092 | | COMPREHENSIVE INCOME, ATTRIBUTABLE TO OWNERS OF PARENT | 483,926 | (2,248,365) | 4,913,527 | 3,603,250 | Informative Data (12 Months) | Informative data (12 Months) | CURRENT YEAR (Ps. thousand) | PREVIOUS YEAR (Ps. thousand) | | :--------------------------- | :-------------------------- | :--------------------------- | | REVENUE NET (**) | 32,213,441 | 34,471,254 | | OPERATING PROFIT (LOSS) (**) | 5,009,225 | 5,875,359 | | PROFIT (LOSS) ATTRIBUTABLE TO OWNERS OF PARENT(**) | 5,323,913 | 7,845,669 | | NET PROFIT (LOSS) (**) | 5,331,107 | 7,851,660 | [Statements of Cash Flows](index=15&type=section&id=Statements%20of%20Cash%20Flows) For the first half of 2025, Grupo Simec reported a net decrease in cash and cash equivalents of Ps. 1,657,182 thousand, a significant reversal from a net increase of Ps. 4,312,878 thousand in the previous year, primarily driven by negative cash flows from operating activities and continued investment in property, plant, and equipment Statements of Cash Flows (Current Year vs. Previous Year) | (Ps. thousand) | CURRENT YEAR | PREVIOUS YEAR | | :-------------------------------- | :----------- | :------------ | | PROFIT (LOSS) BEFORE INCOME TAX | 779,073 | 5,725,042 | | DEPRECIATION AND AMORTISATION FOR THE PERIOD | 541,487 | 497,198 | | NET CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES | (1,528,152) | 3,936,799 | | NET CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES | (10,967) | (210,590) | | (-) INVESTMENT IN PROPERTY, PLANT AND EQUIPMENT | (1,377,247) | (725,205) | | NET CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES | (118,063) | 165,489 | | NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (1,657,182) | 4,312,878 | | CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 29,158,227 | 23,584,335 | | CASH AND CASH EQUIVALENTS AT END OF PERIOD | 27,503,193 | 27,965,651 | [Statements of Changes in Equity](index=16&type=section&id=Statements%20of%20Changes%20in%20Equity) Grupo Simec's total equity increased slightly to Ps. 59,658,066 thousand as of June 30, 2025, from Ps. 59,242,011 thousand at January 1, 2025, primarily driven by retained earnings and other comprehensive income, despite share repurchases Statements of Changes in Equity (As of June 30, 2025) | (Ps. thousand) | CAPITAL STOCK | SHARES REPURCHASED | PREMIUM ON ISSUANCE OF SHARES | RETAINED EARNINGS (ACCUMULATED LOSSES) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | EQUITY ATTRIBUTABLE TO OWNERS OF PARENT | NON-CONTROLLING INTERESTS | TOTAL EQUITY | | :-------------------------------- | :------------ | :----------------- | :---------------------------- | :------------------------------------- | :-------------------------------------------- | :-------------------------------------- | :------------------------ | :----------- | | BALANCE AT 1 JANUARY 2025 | 2,832,268 | 4,481,816 | 4,575,233 | 52,872,672 | (3,556,863) | 59,213,787 | 28,224 | 59,242,011 | | REPURCHASE OF SHARES | | 64,945 | | | | (64,945) | | (64,945) | | (DECREASE) INCREASE IN NON-CONTROLLING INTERESTS | | | | | 71,101 | 71,101 | (1,820) | 69,281 | | COMPREHENSIVE INCOME | | | | 304,297 | | 304,297 | (1,106) | 303,191 | | BALANCE AT 30 JUNE 2024 | 2,832,268 | 4,546,761 | 4,575,233 | 53,176,969 | (3,485,762) | 59,632,768 | 25,298 | 59,658,066 | Notes to Financial Statements [Nature of Business and Relevant Events](index=18&type=section&id=Nature%20of%20Business%20and%20Relevant%20Events) Grupo Simec, S.A.B. de C.V. and its subsidiaries primarily engage in the manufacture and sale of special bar quality (SBQ) commercial and structural steel products for the automotive and construction industries across Mexico, the United States, and Canada. The Company is a subsidiary of Industrias CH, S.A.B. de C.V - Grupo Simec's principal activities are the manufacture and sale of SBQ commercial and profiles structural steel products for the automotive and construction industries in Mexico, USA, and Canada[56](index=56&type=chunk) - The Company is a subsidiary of Industrias CH, S.A.B. de C.V[56](index=56&type=chunk) [Basis of Preparation](index=18&type=section&id=Basis%20of%20Preparation) The consolidated financial statements are prepared in accordance with IAS 34 (interim financial information) and IFRS 1 (first-time adoption), consistent with policies applied at December 31, 2024. They are based on historical cost, except for certain fair-valued financial instruments, and include entities controlled by the Company, with intercompany transactions eliminated - Consolidated financial statements are interim, unaudited, and prepared according to IAS 34 and IFRS 1, consistent with policies applied at December 31, 2024[57](index=57&type=chunk)[58](index=58&type=chunk) - Statements are prepared on the historical cost basis, except for certain financial instruments valued at fair value[60](index=60&type=chunk) - Consolidated financial statements include Grupo Simec and entities controlled by the company, with all intercompany transactions, balances, income, and expenses eliminated[59](index=59&type=chunk)[60](index=60&type=chunk) [Consolidated Financial Statements](index=18&type=section&id=Consolidated%20Financial%20Statements) - The consolidated financial statements are interim, unaudited, and prepared according to IAS 34, as part of the first consolidated financial statement under IFRS issued for the year ended December 31, 2012, adopting IFRS 1[57](index=57&type=chunk) - The accounting policies applied are consistent with those used for the consolidated financial statements at December 31, 2024[58](index=58&type=chunk) [Historic Cost](index=18&type=section&id=Historic%20Cost) - Consolidated financial statements are prepared on the historical cost basis, except for certain financial instruments valued at fair value[60](index=60&type=chunk) [Consolidated Base](index=18&type=section&id=Consolidated%20Base) - Consolidated financial statements include Grupo Simec and entities controlled by the company, where control is defined as the power to govern financial and operating policies to obtain benefits[60](index=60&type=chunk) - Business acquisitions are recorded using the purchase method, with identifiable assets and liabilities recognized at fair value at the acquisition date[64](index=64&type=chunk)[65](index=65&type=chunk) - Goodwill is recognized as an asset at the acquisition date, valued as the excess of consideration paid over the fair value of acquired net identifiable assets and liabilities[67](index=67&type=chunk) [Subsidiaries Included in Consolidation](index=20&type=section&id=Subsidiaries%20Included%20in%20Consolidation) Subsidiaries Included in Consolidation (2025 vs. 2024) | Subsidiaries established in Mexico | Percentage of equity owned 2025 | Percentage of equity owned 2024 | | :--------------------------------- | :------------------------------ | :------------------------------ | | Compañía Siderúrgica de Guadalajara, S.A. de C.V. | 99.99% | 99.99% | | Arrendadora Simec, S.A. de C.V. | 100.00% | 100.00% | | Simec International, S.A. de C.V. | 100.00% | 100.00% | | Compañía Siderúrgica del Pacífico, S.A. de C.V. | 99.99% | 99.99% | | ... (partial list) | ... | ... | | Republic Steel(5) | 99.41% | 99.41% | | GV do Brasil Industria e Comercio de Aco LTDA (7) | 99.99% | 99.99% | - The list includes numerous subsidiaries in Mexico, the United States (e.g., Republic Steel, Pacific Steel, Simec USA, Corp.), Curacao (Undershaft Investments, NV.), and Brazil (GV do Brasil Industria e Comercio de Aco LTDA, Companhia Siderúrgica do Espirito Santo S.A.), with ownership percentages mostly at **99.99%** or **100%**[75](index=75&type=chunk) [Summary of Significant Accounting Policies](index=21&type=section&id=Summary%20of%20Significant%20Accounting%20Policies) This section outlines Grupo Simec's key accounting policies, including the conversion of foreign subsidiary financial statements using IAS 21, valuation of cash and equivalents, provisions for doubtful accounts and slow-moving inventory, depreciation of property, plant and equipment, and the accounting treatment for leases, borrowing costs, intangible assets, goodwill, impairment, provisions, retirement benefits, income per share, income taxes, foreign currency transactions, financial instruments, derivative financial instruments, and revenue recognition - The functional and reporting currency of the Company is the Mexican peso, with foreign subsidiaries' financial statements translated according to IAS 21[78](index=78&type=chunk) - Inventories are recorded at the lower of acquisition/production cost and market/net realizable value, using the average cost method, with a reserve for slow-moving inventory[83](index=83&type=chunk)[85](index=85&type=chunk) - The Company uses derivative financial instruments (natural gas swaps) to manage exposure to natural gas price fluctuations, recognizing effective portions of fair value changes in other comprehensive income[129](index=129&type=chunk)[130](index=130&type=chunk)[133](index=133&type=chunk) [Conversion of Financial Statements of Foreign Subsidiaries](index=21&type=section&id=Conversion%20of%20Financial%20Statements%20of%20Foreign%20Subsidiaries) - The functional and reporting currency of the Company is the Mexican peso. Financial statements of foreign subsidiaries are translated to Mexican pesos in accordance with IAS 21, 'The Effects of Changes in Foreign Exchange Rates'[78](index=78&type=chunk) - The U.S. dollar is the functional currency for U.S. subsidiaries, and the Brazilian real for GV do Brasil. Assets and liabilities are translated at the balance sheet date exchange rate, while equity, revenues, costs, and expenses use historical rates[79](index=79&type=chunk)[81](index=81&type=chunk) Exchange Rate (Mexican pesos per one U.S. dollar) | Exchange Rate (Mexican pesos per one U.S. dollar) | Rate | | :------------------------------------------------ | :--- | | Current exchange rate as of March 31, 2025 | 20.4003 | | Current exchange rate as of June 30, 2025 | 18.8483 | | Current exchange rate as of September 30, 2024 | 19.6697 | | Current exchange rate as of December 31, 2024 | 20.5103 | [Cash and Cash Equivalents](index=22&type=section&id=Cash%20and%20Cash%20Equivalents) - Cash consists of non-interest-generating bank deposits. Cash equivalents are short-term fixed income investments with original maturities less than three months, stated at cost plus accrued yields, similar to fair value[82](index=82&type=chunk) [Allowances for Doubtful Accounts](index=22&type=section&id=Allowances%20for%20Doubtful%20Accounts) - The Company records an allowance for doubtful accounts based on customer balances older than one year, those under litigation, or potential losses from non-fulfillment[82](index=82&type=chunk) [Inventories and Cost of Sales](index=22&type=section&id=Inventories%20and%20Cost%20of%20Sales) - Inventories are recorded at the lower of acquisition/production cost and market/net realizable value, using the average cost method[83](index=83&type=chunk) - A reserve is created for slow-moving inventory, considering products and raw materials with turnover greater than one year[85](index=85&type=chunk) [Property, Plant and Equipment](index=23&type=section&id=Property%2C%20Plant%20and%20Equipment) - Property, plant and equipment are recorded at cost less impairment, depreciated using the straight-line method over their useful lives, starting when assets are ready for use[87](index=87&type=chunk) - Land is not depreciated. Useful lives, residual values, and depreciation methods are reviewed annually[87](index=87&type=chunk)[88](index=88&type=chunk) Estimated Useful Life of Assets | Asset Category | Estimated Useful Life (Years) | | :--------------- | :---------------------------- | | Buildings | 10 to 65 | | Machinery and equipment | 5 to 40 | | Transportation equipment | 4 | | Furniture, mixtures and computer equipment | 3 to 10 | [Leasing](index=23&type=section&id=Leasing) - Leases are classified as finance leases if they transfer substantially all risks and benefits of ownership, otherwise as operating leases[89](index=89&type=chunk) - Assets under finance leases are recognized at fair value or present value of minimum lease payments, with corresponding liabilities. Operating lease payments are expensed straight-line[90](index=90&type=chunk)[91](index=91&type=chunk)[92](index=92&type=chunk) [Borrowing Cost](index=23&type=section&id=Borrowing%20Cost) - Borrowing costs directly attributable to the acquisition, construction, or production of qualifying assets are capitalized to the cost of those assets until they are ready for use or sale[92](index=92&type=chunk) [Intangible Assets](index=24&type=section&id=Intangible%20Assets) - Intangible assets with finite useful lives are recorded at cost less accumulated amortization and impairment, amortized straight-line. Indefinite useful life intangibles are recognized at cost less impairment[94](index=94&type=chunk) - Internally generated intangible assets from development activities are recognized only if specific criteria demonstrating technical feasibility, intention, ability to use/sell, future economic benefits, adequate resources, and reliable expenditure valuation are met[95](index=95&type=chunk)[99](index=99&type=chunk) [Goodwill](index=24&type=section&id=Goodwill) - Goodwill from business combinations is recognized as an asset at the acquisition date, less accumulated impairment losses[98](index=98&type=chunk) - Goodwill is allocated to cash-generating units and subject to annual impairment reviews, or more frequently if impairment is indicated[98](index=98&type=chunk) [Impairment of Tangible and Intangible Assets](index=25&type=section&id=Impairment%20of%20Tangible%20and%20Intangible%20Assets) - The Company reviews carrying amounts of tangible and intangible assets annually for impairment indications. If indicated, the recoverable amount (higher of fair value less cost to sell and value in use) is calculated[103](index=103&type=chunk) - Impairment losses are recognized immediately in profit or loss, unless the asset is carried at a revalued amount. Reversals are also recognized in profit or loss, up to the amount that would have been if no impairment was recognized[103](index=103&type=chunk) [Provisions](index=25&type=section&id=Provisions) - Provisions are recognized when the Company has a present legal or assumed obligation from past events, it is probable that the obligation will be settled, and the amount can be reliably estimated[103](index=103&type=chunk) - The recognized amount is the best estimate of the expenditure required, considering risks and uncertainties, and is discounted to present value if cash flows are estimated[100](index=100&type=chunk) [Cost of Retirement Benefits](index=25&type=section&id=Cost%20of%20Retirement%20Benefits) - Contributions to defined contribution plans are expensed when services are rendered. Defined benefit plan costs are determined using the projected unit credit method with actuarial valuations[101](index=101&type=chunk) [Income Per Share](index=25&type=section&id=Income%20Per%20Share) - Earnings per share are calculated by dividing net income controlling interest by the weighted average of common shares outstanding[102](index=102&type=chunk) [Income Taxes](index=26&type=section&id=Income%20Taxes) - Income tax expense is the sum of current and deferred income tax. Current tax is based on fiscal profits, and deferred tax is recognized on temporary differences using the liability method[104](index=104&type=chunk)[105](index=105&type=chunk) - Deferred tax assets are recognized if future taxable profits are probable, and their carrying value is reviewed annually[105](index=105&type=chunk)[106](index=106&type=chunk) - Current and deferred taxes are recognized in profit or loss, unless related to items recognized in other comprehensive income or directly in equity[110](index=110&type=chunk) [Foreign Currency Transaction](index=26&type=section&id=Foreign%20Currency%20Transaction) - Transactions in foreign currencies are recorded using exchange rates at transaction dates. Monetary items in foreign currency are converted at period-end exchange rates[112](index=112&type=chunk) - Exchange rate differences are recognized in the income statement, with exceptions for certain loans related to assets under construction, hedging transactions, and foreign operation investments[114](index=114&type=chunk)[118](index=118&type=chunk) [Financial Instruments (Assets and Liabilities)](index=27&type=section&id=Financial%20Instruments%20%28Assets%20and%20Liabilities%29) - Financial assets are classified as 'financial assets at fair value through income', 'preserved at maturity investment', 'financial assets available for sale', and 'loans and charge receivable'[114](index=114&type=chunk) - The Company has no financial assets classified as 'financial assets at fair value through income', 'preserved at maturity investments' or 'financial assets available for sale'. Loans and receivables are stated at amortized cost less impairment[115](index=115&type=chunk) - Financial liabilities are classified as 'financial liabilities at fair value through income' or 'other financial liabilities', with the latter valued at fair value net of transaction costs and amortized using the effective interest rate method[125](index=125&type=chunk)[127](index=127&type=chunk)[128](index=128&type=chunk) [Derivative Financial Instruments](index=29&type=section&id=Derivative%20Financial%20Instruments) - The Company uses derivative financial instruments, specifically natural gas swaps, to manage exposure to natural gas price risk for production[129](index=129&type=chunk)[130](index=130&type=chunk) - Derivatives are initially recognized at fair value and remeasured at fair value at period-end. Effective portions of cash flow hedges are recognized in other comprehensive income[129](index=129&type=chunk)[133](index=133&type=chunk) - Hedge accounting is discontinued if the hedging relationship is reversed, the instrument expires/is sold, or no longer meets effectiveness criteria (**80%-125%** compensation)[133](index=133&type=chunk)[135](index=135&type=chunk) [Revenue Recognition](index=30&type=section&id=Revenue%20Recognition) - Revenue is recognized when the risks and benefits of inventories are transferred to the customer, typically coinciding with product delivery[137](index=137&type=chunk) - Net sales represent goods sold at list price, less returns and discounts[137](index=137&type=chunk) [Segments Information](index=30&type=section&id=Segments%20Information) - Segment information is presented based on region and operational business, aligning with management's decision-making information[137](index=137&type=chunk) [Earnings (Loss) Per Share](index=30&type=section&id=Earnings%20%28Loss%29%20Per%20Share) - Earnings per share are calculated by dividing controlling net income or loss by the weighted average shares outstanding during each year presented[136](index=136&type=chunk)[137](index=137&type=chunk) Supplementary Information [Investments in Associates and Joint Ventures](index=31&type=section&id=Investments%20in%20Associates%20and%20Joint%20Ventures) The report lists numerous subsidiaries and associated companies, primarily involved in steel manufacturing, sales, and related services across Mexico, the US, and Brazil. However, the provided table indicates zero acquisition cost and current value for all listed investments, suggesting these are fully consolidated subsidiaries rather than equity-accounted associates/joint ventures Investments in Associates and Joint Ventures | COMPANY NAME | PRINCIPAL ACTIVITY | NUMBER OF SHARES | % OWNERSHIP | ACQUISITION COST | CURRENT VALUE | | :-------------------------------- | :----------------------------------- | :--------------- | :---------- | :--------------- | :------------ | | SIMEC INTERNATIONAL | FABRICACION Y VENTA DE PROD. DE ACERO | 0 | 99.99 | 0 | 0 | | ARRENDADORA SIMEC | FABRICACION Y VENTA DE PROD DE ACERO | 0 | 100.00 | 0 | 0 | | PACIFIC STEEL | COMPRA VENTA DE CHATARRA | 0 | 100.00 | 0 | 0 | | ... (partial list) | ... | ... | ... | ... | ... | | TOTAL INVESTMENT IN ASSOCIATES | | | | 0 | 0 | - The table lists numerous entities with high ownership percentages (e.g., **99.99%**, **100%**) but shows zero acquisition cost and current value, indicating these are likely fully consolidated subsidiaries rather than equity-accounted investments[140](index=140&type=chunk) [Breakdown of Credits](index=32&type=section&id=Breakdown%20of%20Credits) Grupo Simec's credit breakdown indicates no bank loans. The only listed stock market loan is unsecured medium-term notes with a current year balance of Ps. 5,692 thousand, maturing within one year. Supplier credits are significant, with Ps. 1,013,920 thousand due within the current year and Ps. 1,829,428 thousand due in 5 years or more Breakdown of Credits (Current Year) | CREDIT TYPE / INSTITUTION | CURRENT YEAR (Ps. thousand) | UNTIL 1 YEAR (Ps. thousand) | UNTIL 5 YEAR OR MORE (Ps. thousand) | | :------------------------ | :-------------------------- | :-------------------------- | :---------------------------------- | | TOTAL BANKS | 0 | 0 | 0 | | UNSECURED MEDIUM TERM NOTES | 5,692 | 5,692 | 0 | | TOTAL SUPPLIERS | 1,013,920 | 1,013,920 | 1,829,428 | - The company has no bank loans. Its only listed stock market loan is unsecured medium-term notes totaling **Ps. 5,692 thousand**, due within one year[141](index=141&type=chunk) - Supplier credits amount to **Ps. 1,013,920 thousand** for the current year (within 1 year) and **Ps. 1,829,428 thousand** for 5 years or more[141](index=141&type=chunk) [Monetary Foreign Currency Position](index=34&type=section&id=Monetary%20Foreign%20Currency%20Position) Grupo Simec holds a significant net monetary asset position in foreign currency, primarily U.S. dollars, totaling Ps. 27,542,318 thousand, composed of Ps. 31,471,740 thousand in monetary assets and Ps. 3,929,422 thousand in liabilities Monetary Foreign Currency Position | FOREIGN CURRENCY POSITION | DOLLARS (Ps. thousand) | OTHER CURRENCIES (Ps. thousand) | TOTAL (Ps. thousand) | | :------------------------ | :----------------------- | :-------------------------------- | :--------------------- | | MONETARY ASSETS | 31,471,740 | 0 | 31,471,740 | | LIABILITIES | 3,929,422 | 0 | 3,929,422 | | NET BALANCE | 27,542,318 | 0 | 27,542,318 | - The Company has a net monetary foreign currency balance of **Ps. 27,542,318 thousand**, entirely in U.S. dollars[143](index=143&type=chunk) [Debt Instruments and Financial Limitations](index=35&type=section&id=Debt%20Instruments%20and%20Financial%20Limitations) Grupo Simec has outstanding 8 7/8% medium-term notes (MTNs) due in 1998, with a remaining balance of Ps. 5.7 million ($302,000 USD) as of June 30, 2025. The company is in compliance with all financial covenants related to these notes, including current assets to current liabilities, total liabilities to total assets, and operating income plus non-cash items - The remaining balance of **8 7/8%** medium-term notes (MTNs) due 1998 is **Ps. 5.7 million** (**$302,000 USD**) as of June 30, 2025[30](index=30&type=chunk)[146](index=146&type=chunk) Financial Limitations (Covenants) Compliance | Financial Limitation (Covenant) | Required | Actual Situation (as of June 30, 2025) | Compliance | | :-------------------------------- | :------- | :------------------------------------- | :--------- | | Current assets to current liabilities | 1.0 times or more | 5.97 times | Accomplished | | Total liabilities to total assets | Not more than 0.60 | 0.16 | Accomplished | | Operating income plus non-cash items | 2.0 times or more | 59.60 | Accomplished | [Distribution of Revenue by Product](index=36&type=section&id=Distribution%20of%20Revenue%20by%20Product) For Q2 2025, Grupo Simec's total revenue was Ps. 14,834,750 thousand, with domestic sales contributing Ps. 8,261,627 thousand and foreign sales (including foreign subsidiaries) contributing Ps. 6,573,123 thousand. Commercial Profiles represent the largest product line in both domestic and foreign markets Distribution of Revenue by Product (Q2 2025) | Product Line | Sales Market | Share % Volume | Amount (Ps. thousand) | | :---------------- | :----------- | :------------- | :-------------------- | | COMMERCIAL PROFILES | DOMESTIC | 345 | 5,268,021 | | SPECIAL PROFILES | DOMESTIC | 138 | 2,993,606 | | TOTAL | DOMESTIC | 483 | 8,261,627 | | COMMERCIAL PROFILES | FOREIGN | 296 | 4,234,357 | | SPECIAL PROFILES | FOREIGN | 100 | 1,798,952 | | TOTAL | FOREIGN | 396 | 6,033,309 | | SPECIAL PROFILES | FOREIGN SUBSIDIARIES | 22 | 539,814 | | T O T A L | | 901 | 14,834,750 | - Total revenue for Q2 2025 was **Ps. 14,834,750 thousand**, with domestic sales accounting for **Ps. 8,261,627 thousand** and foreign sales (including foreign subsidiaries) for **Ps. 6,573,123 thousand**[147](index=147&type=chunk) - Commercial Profiles are the largest revenue contributor in both domestic (**Ps. 5,268,021 thousand**) and foreign (**Ps. 4,234,357 thousand**) markets[147](index=147&type=chunk) [Analysis of Paid Capital Stock](index=37&type=section&id=Analysis%20of%20Paid%20Capital%20Stock) Grupo Simec's total capital stock consists of 497,709,214 shares, comprising 90,850,050 fixed portion shares and 406,859,164 variable portion shares. The total capital social is Ps. 2,420,230 thousand (Ps. 441,786 thousand fixed and Ps. 1,978,444 thousand variable) Analysis of Paid Capital Stock | Characteristic | Fixed Portion | Variable Portion | Total | | :--------------- | :------------ | :--------------- | :---- | | Number of Shares | 90,850,050 | 406,859,164 | 497,709,214 | | Capital Social (Ps. thousand) | 441,786 | 1,978,444 | 2,420,230 | | Total Number of Shares Representing the Capital Stock | | | 497,709,214 | - The total number of shares representing the capital stock is **497,709,214**[147](index=147&type=chunk)

Core Insights - Grupo Simec reported a significant decline in net income, dropping 94% from Ps. 5,435 million in the first half of 2024 to Ps. 304 million in the first half of 2025, primarily due to decreased sales and shipments of finished steel products [13][40]. Sales Performance - Net sales decreased by 9% from Ps. 16,279 million in the first half of 2024 to Ps. 14,835 million in the first half of 2025, driven by an 11% reduction in shipments of finished steel products [2][40]. - Total sales outside of Mexico fell by 10% to Ps. 6,573 million, while domestic sales decreased by 8% to Ps. 8,262 million [2][40]. - In the second quarter of 2025, net sales decreased by 9% compared to the first quarter, from Ps. 7,783 million to Ps. 7,052 million [14][40]. Cost and Profitability - Cost of sales decreased by 9% from Ps. 12,232 million in the first half of 2024 to Ps. 11,167 million in the first half of 2025, maintaining a consistent percentage of 75% of net sales for both periods [3][40]. - Gross profit fell from Ps. 4,047 million in the first half of 2024 to Ps. 3,668 million in the first half of 2025, representing a gross profit margin of 25% for both periods [4][40]. - Selling, general, and administrative expenses increased by 11% from Ps. 1,176 million to Ps. 1,307 million, rising from 7% to 9% of net sales [5][40]. Operating and EBITDA Performance - Operating profit decreased by 10% from Ps. 2,916 million in the first half of 2024 to Ps. 2,624 million in the first half of 2025, with an operating margin of 18% for both periods [7][40]. - EBITDA declined by 7% from Ps. 3,413 million in the first half of 2024 to Ps. 3,165 million in the first half of 2025 [8][40]. Financial Costs and Income - Comprehensive financial costs shifted from a net income of Ps. 2,809 million in the first half of 2024 to an expense of Ps. 1,845 million in the first half of 2025, primarily due to an exchange loss of Ps. 2,332 million [11][40]. - The company recorded a net tax expense of Ps. 476 million in the first half of 2025, compared to Ps. 291 million in the same period of 2024 [12][40]. Quarterly Comparison - In the second quarter of 2025, net income turned into a loss of Ps. 1,000 million, compared to a profit of Ps. 3,979 million in the second quarter of 2024 [39][40]. - The second quarter of 2025 saw a 16% decrease in net sales compared to the same quarter in 2024, dropping from Ps. 8,394 million to Ps. 7,052 million [28][40].

Core Insights - VCI Global Limited has launched Qsecore, a groundbreaking encryption solution that provides hardware-level security for voice calls, messaging, and file storage, aimed at enterprise and government use [1][4] - Qsecore is the first Subscriber Identity Module (SIM)-layer security product, offering a zero-trust architecture independent of operating systems or third-party cloud services [2][7] - The secure mobile communications market is projected to reach approximately USD 88.8 billion by 2032, growing at a CAGR of 19.8% from 2022 to 2032, driven by digitalization and data privacy concerns [2] Product Details - Qsecore will begin commercial rollout in August 2025, focusing on enterprise and strategic market deployments, with multi-user licenses and sector-specific secure deployments [3] - The Qsecore app includes functionalities for secure calls, chat, media sharing, and file vault, ensuring that all communications and stored files are encrypted at the SIM layer [7] - Qsecore is compatible with existing SIM cards and works on most iOS and Android smartphones without requiring hardware modifications [7] About QuantGold Data Platform - QuantGold is a sovereign-grade encrypted AI compute platform that allows institutions to analyze sensitive data without exposing it, built on over 120 encryption patents [5] - The platform supports compliant, privacy-preserving AI computation and operates across key sectors including healthcare, finance, and public administration [5] Company Overview - VCI Global is a diversified global holding company focused on AI & Robotics, Fintech, Cybersecurity, Renewable Energy, and Capital Market Consultancy, with a strong presence in Asia, Europe, and the United States [6]

Trade and Tariffs - The reinstatement of Section 232 tariffs on all steel imports by the U.S. at 25% is expected to impact international trade flows and increase input costs [26]. - Over 80% of Mexico's exports are dependent on trade with the U.S., making the Mexican economy vulnerable to changes in U.S. trade policies [28]. - Increased low-priced steel exports from Asia, especially China, have raised concerns about unfair competition, prompting potential anti-dumping duties in Brazil and Mexico [30]. - The U.S. Department of Commerce imposed tariffs of 66.7% on rebar imports from Deacero, S.A.P.I de C.V. and 20.58% on imports from other Mexican producers due to anti-dumping investigations [220]. - A preliminary dumping rate of 66.7% was imposed on the company's exports of rebar to the United States, which was ratified on June 1, 2022 [221]. - The CPTPP aims to eliminate or reduce tariff and non-tariff barriers across substantially all trade in goods and services, creating new opportunities for businesses [217]. - The USMCA maintains tariff-free access for most steel products among the United States, Mexico, and Canada, facilitating regional trade [212]. - The Mexican government has taken measures to prevent unfair trade practices such as dumping in the steel import market [210]. - The company has been affected by numerous steel dumping and countervailing duty claims, but these duties have not materially impacted its operations [218]. Industry Challenges - The steel industry is facing significant pricing pressure due to unfair trade practices, particularly from producers in state-supported economies like China [29]. - The global steel industry is experiencing structural overcapacity, with current production exceeding consumption, particularly affecting long products [37]. - Competition from alternative materials like aluminum and composites could reduce demand for steel products, impacting market prices [44]. - Labor disputes could disrupt operations, with approximately 67% of employees in Mexico represented by labor unions [45]. - Future global health emergencies could materially disrupt the company's operations, financial condition, and cash flows, similar to the impacts experienced during the COVID-19 pandemic [48]. - High inflation rates in Mexico could reduce consumer purchasing power and adversely affect demand for the company's products [86]. Environmental Compliance - Compliance with environmental laws is becoming increasingly stringent, with potential significant liabilities for non-compliance [46]. - The company may incur significant liabilities related to environmental remediation at its facilities, with costs and liabilities associated with investigations and remediation efforts [47]. - The company is subject to greenhouse gas policies and regulations that could negatively impact its steelmaking operations, particularly in Brazil and Mexico [60]. - The company believes it is in substantial compliance with all environmental laws and regulations applicable to its operations [193]. - Mexican environmental laws have become increasingly stringent over the last decade, potentially leading to significant unplanned capital expenditures [194]. - The National Waters Law requires companies to comply with water quality standards and obtain concessions for water use, which the company believes it is in compliance with [195][196]. - The company has made significant capital investments to ensure compliance with environmental regulations [193]. - Legacy U.S. facilities may still be subject to environmental regulations despite ceasing operations in 2023, which could result in significant liabilities [199]. Financial Performance and Risks - The company is currently under investigation by the SEC regarding historical material weaknesses in internal controls over financial reporting, which may lead to significant costs and penalties [69]. - The company has historically identified material weaknesses in internal controls, which could lead to inaccurate financial reporting and loss of investor confidence [72]. - Changes in tax laws and regulations in the countries where the company operates could increase its tax liability and adversely affect its financial condition [62]. - Cybersecurity threats pose risks to the company's operations, potentially leading to operational disruptions and financial losses [63]. - The company relies on senior management with unique industry knowledge, and the loss of key executives could adversely affect its business and financial condition [61]. - Exchange rate fluctuations, particularly of the Mexican peso against the U.S. dollar, could materially affect the company's financial performance [84]. Operational Insights - The company operates 12 facilities with a combined annual crude steel production capacity of 5.6 million tons and rolling capacity of 4.5 million tons [124]. - Grupo Simec's production capacity includes 600,000 tons of liquid steel per year and 348,000 tons of rolled steel products per year at the Cariacica plant in Brazil [113]. - A substantial portion of the company's operations are conducted in Mexico, making it vulnerable to adverse economic conditions in the region [79]. - The company has strategically located plants in Mexico, allowing it to serve regional markets effectively and maintain cost advantages [106]. - The company aims to improve its cost structure and focus on high-margin products while pursuing strategic growth opportunities through acquisitions and organic growth [126][129]. Market Dynamics - The automotive market accounted for approximately 11% of the company's net sales of SBQ products in 2024 [77]. - The company faces significant cost pressures due to ongoing price reduction demands from automotive customers, adversely affecting profit margins [78]. - Direct sales to the automotive industry decreased by 8% in 2024 compared to 2023, which had already seen a 12% decrease from 2022 [138]. - SBQ steel products represented 11% of total sales in tons in 2024, with 72% sold to the automotive industry [137]. - The Brazilian steel industry is the 9th largest producer globally, with the company competing against major players like ArcelorMittal Brazil and Gerdau [163]. Capital Expenditures - Capital expenditures for 2025 are estimated to be approximately Ps. 4,726.9 million (U.S.$ 230.5 million), with Ps. 2,321.7 million (U.S.$ 113.2 million) in Mexico and Ps. 2,405.2 million (U.S.$ 117.3 million) in Brazil [119]. - In 2024, capital expenditures amounted to approximately Ps. 2,727.6 million (U.S.$ 116.2 million), with Ps. 194.9 million (U.S.$ 10.6 million) in Mexico and Ps. 1,932.7 million (U.S.$ 105.6 million) in Brazil [120]. - In 2023, capital expenditures were approximately Ps. 2,851.7 million (U.S.$ 158.4 million), with Ps. 799.7 million (U.S.$ 44.4 million) in Mexico and Ps. 2,052.0 million (U.S.$ 114.0 million) in Brazil [121]. Production and Sales Trends - In 2024, approximately 54.5% of sales volume came from Mexico, 45.3% from Brazil, and 0.2% from the U.S. segment, which ceased operations in 2023 [141]. - Sales of I-Beams in 2024 were 86.4 thousand tons, a decrease from 93.8 thousand tons in 2023 [135]. - The company sold approximately 430,947 tons of hot rolled and cold finished steel bars, a decrease from 498,959 tons in 2023 [156]. - Rebar and light structural steel accounted for approximately 1,237,000 tons, or 60.1% of total production of finished steel products in Mexico, Brazil, and the United States in 2024 [157]. - Scrap metal accounted for approximately 62% of the consolidated manufacturing conversion cost in 2024, with significant fluctuations in scrap prices impacting profit margins [172].

Core Insights - Grupo Simec reported a decrease in net sales and net income for the first quarter of 2025 compared to the same period in 2024, primarily due to lower sales prices and shipment volumes [2][13]. Financial Performance - **Net Sales**: Decreased from Ps. 7,885 million in Q1 2024 to Ps. 7,783 million in Q1 2025, with a 1% decrease in steel finished goods shipments [2]. - **Cost of Sales**: Decreased from Ps. 5,876 million in Q1 2024 to Ps. 5,786 million in Q1 2025, representing 74% of net sales in Q1 2025 compared to 75% in Q1 2024 [3]. - **Gross Profit**: Decreased by 1% from Ps. 2,009 million in Q1 2024 to Ps. 1,997 million in Q1 2025, with gross profit as a percentage of net sales increasing from 25% to 26% [4]. - **Operating Income**: Slight increase from Ps. 1,419 million in Q1 2024 to Ps. 1,426 million in Q1 2025, maintaining an operating income percentage of 18% [7]. - **EBITDA**: Increased from Ps. 1,668 million in Q1 2024 to Ps. 1,692 million in Q1 2025 [8]. - **Net Income**: Decreased from Ps. 1,456 million in Q1 2024 to Ps. 1,305 million in Q1 2025 [9][13]. Expense Analysis - **General, Selling, and Administrative Expenses**: Increased by 6% from Ps. 595 million in Q1 2024 to Ps. 633 million in Q1 2025, representing 8% of net sales for both periods [5]. - **Comprehensive Financial Cost**: Net income from comprehensive financial activities decreased from Ps. 147 million in Q1 2024 to Ps. 57 million in Q1 2025, with an exchange loss of Ps. 156 million recorded in Q1 2025 [11][24]. Comparative Analysis - **Q1 2025 vs. Q4 2024**: Net sales decreased by 12% from Ps. 8,830 million in Q4 2024 to Ps. 7,783 million in Q1 2025, with a significant drop in sales outside Mexico by 21% [15]. - **Cost of Sales**: Decreased by 22% from Ps. 7,408 million in Q4 2024 to Ps. 5,786 million in Q1 2025, with the cost of sales as a percentage of net sales improving from 84% to 74% [16]. - **Gross Profit**: Increased from Ps. 1,422 million in Q4 2024 to Ps. 1,997 million in Q1 2025, with gross profit as a percentage of net sales rising from 16% to 26% [17]. - **Operating Income**: Increased by 66% from Ps. 861 million in Q4 2024 to Ps. 1,426 million in Q1 2025 [21]. - **Net Income**: Decreased from Ps. 1,901 million in Q4 2024 to Ps. 1,305 million in Q1 2025 [26].

Core Insights - Grupo Simec reported a significant decrease in net sales by 18% for the twelve-month period ended December 31, 2024, compared to the same period in 2023, primarily due to reduced shipments and lower average sales prices [2][37] - Despite the decline in sales, the company achieved a remarkable increase in net income, rising by 145% to Ps. 10,488 million in 2024 from Ps. 4,283 million in 2023 [13][37] Financial Performance - **Net Sales**: Decreased from Ps. 41,139 million in 2023 to Ps. 33,658 million in 2024, with shipments of finished steel products down 6% [2][37] - **Cost of Sales**: Reduced by 16% from Ps. 31,100 million in 2023 to Ps. 26,033 million in 2024, with the average cost of finished steel produced decreasing by 11% [3][37] - **Gross Profit**: Declined from Ps. 10,039 million in 2023 to Ps. 7,625 million in 2024, representing 23% of net sales in 2024 compared to 24% in 2023 [4][37] - **Operating Income**: Fell by 30% from Ps. 7,603 million in 2023 to Ps. 5,301 million in 2024, accounting for 16% of net sales in 2024 [7][37] - **EBITDA**: Decreased by 26% from Ps. 8,638 million in 2023 to Ps. 6,367 million in 2024 [8][37] Expenses and Income - **Operating Expenses**: Increased by 12% from Ps. 2,317 million in 2023 to Ps. 2,603 million in 2024, representing 8% of net sales in 2024 [5][37] - **Other Income (Expenses)**: Shifted from net expenses of Ps. 119 million in 2023 to net income of Ps. 279 million in 2024 [6][37] - **Income Taxes**: Increased from Ps. 1,740 million in 2023 to Ps. 2,060 million in 2024 [12][37] Quarterly Performance - **Fourth Quarter Net Sales**: Increased by 3% from Ps. 8,549 million in Q3 2024 to Ps. 8,830 million in Q4 2024, with total sales outside Mexico rising by 19% [15][37] - **Fourth Quarter Gross Profit**: Decreased by 34% to Ps. 1,422 million compared to Ps. 2,156 million in Q3 2024 [17][37] - **Fourth Quarter Operating Income**: Declined to Ps. 861 million from Ps. 1,524 million in Q3 2024 [20][37] - **Fourth Quarter Net Income**: Reported at Ps. 1,901 million, down from Ps. 3,152 million in Q3 2024 [25][37] Comparative Analysis - **Year-over-Year Sales**: Total sales in Mexico decreased by 25% from Ps. 24,325 million in 2023 to Ps. 18,270 million in 2024, while total sales outside Mexico decreased by 8% [2][37] - **Cost of Sales Comparison**: Increased by 9% from Ps. 6,795 million in Q4 2023 to Ps. 7,408 million in Q4 2024 [26][37] - **Net Income Comparison**: Increased significantly from Ps. 462 million in Q4 2023 to Ps. 1,901 million in Q4 2024 [36][37]

Core Viewpoint - SK Telecom, South Korea's largest carrier, is replacing mobile SIM chips for its 23 million users following a significant data breach that compromised personal information [3][4]. Group 1: Incident Overview - The data breach involved malicious code that led to the compromise of customer personal information, prompting an apology from the company and a government review of the national data protection system [4]. - SK Telecom has not disclosed the extent of the damage or the identity of the attackers [4]. Group 2: Response Actions - Starting from 10 am on Monday, SK Telecom began replacing USIM chips free of charge at 2,600 carrier stores nationwide [5]. - The company has committed to taking full responsibility and has encouraged users to sign up for an information protection service [5]. Group 3: Supply Chain Challenges - SK Telecom has acknowledged that it has secured less than 5% of the USIM cards needed for its customer base and plans to procure an additional five million chips by the end of May [6]. - Customers expressed concerns about the lack of transparency regarding the extent of the information leak and the number of affected subscribers [6]. Group 4: Cybersecurity Context - South Korea has been a frequent target of cyber hacking, particularly from North Korea, which has been implicated in several major attacks [7]. - In a related incident, North Korean hackers were reported to have stolen sensitive data from a South Korean court computer network over a two-year period, amounting to over one gigabyte of data [8].

Financial Performance - Net sales decreased by 18% from Ps. 41,139 million in 2023 to Ps. 33,658 million in 2024, with shipments of finished steel products down 6%[3] - Gross profit fell to Ps. 8,190 million in 2024, down from Ps. 10,039 million in 2023, maintaining a gross profit margin of 24% for both years[5] - Operating income decreased by 23% from Ps. 7,603 million in 2023 to Ps. 5,830 million in 2024, representing 17% of net sales in 2024 compared to 18% in 2023[8] - EBITDA declined by 21% from Ps. 8,638 million in 2023 to Ps. 6,864 million in 2024[9] - Net income increased by 168% from Ps. 4,283 million in 2023 to Ps. 11,475 million in 2024[13] - Total sales for the year 2024 were Ps. 33,658 million, representing an 18% decrease from Ps. 41,139 million in 2023[38] - Cost of sales for 2024 was Ps. 25,468 million, also down by 18% compared to Ps. 31,100 million in 2023[38] - EBITDA for Q4 2024 was Ps. 1,673 million, a 47% increase compared to Ps. 1,140 million in Q4 2023[34] - Net income for Q4 2024 reached Ps. 2,888 million, a significant increase of 525% from Ps. 462 million in Q4 2023[39] - Revenue for the current year reached 33,657,672 thousand pesos, compared to 41,139,248 thousand pesos in the previous year, reflecting a decrease of approximately 18.0%[47] - Gross profit for the current quarter was 8,189,959 thousand pesos, up from 1,943,277 thousand pesos in the previous quarter, indicating an increase of about 12.7%[47] - Net profit attributable to owners of the parent for the current year was 11,475,209 thousand pesos, significantly higher than 4,282,906 thousand pesos in the previous year, representing an increase of approximately 168.5%[48] - Operating profit for the current year was 5,829,729 thousand pesos, down from 7,602,538 thousand pesos in the previous year, a decrease of approximately 23.4%[48] Expenses and Costs - Selling, general and administrative expenses rose by 7% from Ps. 2,317 million in 2023 to Ps. 2,487 million in 2024, accounting for 7% of net sales in 2024[6] - Cost of sales decreased by 18% from Ps. 31,100 million in 2023 to Ps. 25,468 million in 2024, with the average cost of finished steel produced down 13%[4] - Selling, General and Administrative Expenses for Q4 2024 were Ps. 654 million, a decrease of 10% from Ps. 730 million in Q4 2023[39] Financial Position - Cash and cash equivalents increased to Ps. 29,157 million in the current quarter from Ps. 23,584 million in the previous year[41] - Total assets rose to Ps. 74,809 million in the current quarter, up from Ps. 66,787 million in the previous year[41] - The company recorded a comprehensive financial cost of Ps. 1,724 million in Q4 2024, compared to a net expense of Ps. 270 million in Q4 2023[35] - The company incurred interest expenses of $3,723, a decrease from $153,729, indicating reduced financing costs[52] - The balance of retained earnings (accumulated losses) improved to $(27,707) from $(317,267), reflecting a positive shift in financial health[58] - The company’s total equity increased to $59,173,064, up from $49,780,624, representing a growth of 18.5%[58] Cash Flow - Net cash flows from operating activities increased to $5,540,079 from $4,263,295, a growth of 30% year-over-year[52] - Cash flows before income tax rose to $11,808,306, up from $6,222,898, marking an increase of 89.5%[52] - Net cash flows used in investing activities decreased to $(270,467) from $(1,283,100), indicating improved cash management[52] - The company reported a net increase in cash and cash equivalents of $5,139,392, compared to $2,737,425 in the previous year, a growth of 87.5%[52] - Total cash and cash equivalents at the end of the period reached $29,157,266, up from $23,584,335, reflecting a 23.7% increase[52] Shareholder Information - The company repurchased 36,704,310 shares, up from 36,023,685 shares in the previous year, indicating an increase of approximately 1.9%[46] - The company repurchased shares worth $126,497, compared to $89,041 in the previous year, showing an increase in shareholder returns[55] - Total number of shares representing the capital stock is 497,709,214[157] - Fixed portion of shares is 441,786, while the variable portion is 1,978,444[157] - The nominal value of shares is not specified, but the total number of shares includes 90,850,050 fixed shares and 406,859,164 variable shares[157] - The company has no coupon associated with the shares[157] Operational Insights - The company has significant investments in associates and joint ventures, with ownership percentages mostly at or near 100%[143] - The total investment in associates is recorded as zero, indicating no current financial value attributed to these investments[143] - The company is listed on the Mexican Stock Exchange under the ticker SIMEC, indicating its public trading status[144] - The document does not provide specific financial performance metrics or future guidance[157] - There is no mention of new products, technologies, market expansion, or mergers in the provided content[157] - The document focuses primarily on the characteristics of the shares rather than operational performance[157] - No financial data such as revenue or profit margins are included in the content[157] Accounting Policies - The company follows the average cost method for inventory valuation, ensuring that the recorded value does not exceed the market value or net realizable value[87] - Goodwill is recognized as an asset at the acquisition date, subject to annual impairment reviews[102] - Impairment losses for tangible and intangible assets are recognized immediately in profit or loss if the recoverable amount is less than the carrying amount[102] - Provisions are recognized when there is a present obligation and a reliable estimate can be made of the amount required to settle it[103] - Contributions to defined contribution retirement plans are recognized as expenses when employees render services[104] - Earnings per share are calculated by dividing net income attributable to controlling interest by the weighted average of common shares outstanding[105] - Current income tax is based on fiscal profits and cash flows, computed using tax rates enacted at the end of the reporting period[106] - Deferred tax assets and liabilities are recognized for temporary differences and reviewed annually for recoverability[108] Risk Management - The company utilizes derivative financial instruments to manage exposure to natural gas price fluctuations, which are recognized at fair value at the contract date and remeasured at the end of the reporting period[134] - The company employs exchange contracts or swaps for cash flow of natural gas, receiving a floating price and paying a fixed price, with fluctuations recognized as part of operating costs[135] - The effective portion of changes in the fair value of derivatives designated as cash flow hedges is recognized in other comprehensive income, while gains and losses on ineffective portions are recognized immediately in income[137] - Hedge accounting is discontinued when the hedging relationship is reversed or the hedging instrument no longer meets criteria, with cumulative gains or losses remaining in equity until the forecast transaction is recognized[139] - The company is focused on managing risks associated with natural gas prices through documented hedging strategies and ongoing assessments of effectiveness[136]

Core Insights - Grupo Simec reported a significant decrease in net sales by 18% for the twelve-month period ended December 31, 2024, compared to the same period in 2023, primarily due to reduced shipments and lower average sales prices [2][39] - Despite the decline in sales, the company achieved a remarkable increase in net income by 168%, rising from Ps. 4,283 million in 2023 to Ps. 11,475 million in 2024 [13][39] Financial Performance - **Net Sales**: Decreased from Ps. 41,139 million in 2023 to Ps. 33,658 million in 2024, with a 6% drop in shipments and a 13% decline in average sales price [2][39] - **Cost of Sales**: Reduced by 18% from Ps. 31,100 million in 2023 to Ps. 25,468 million in 2024, maintaining a consistent cost of sales percentage at 76% for both years [3][39] - **Gross Profit**: Declined from Ps. 10,039 million in 2023 to Ps. 8,190 million in 2024, with gross profit as a percentage of net sales remaining at 24% [4][39] - **Operating Expenses**: Increased by 7% from Ps. 2,317 million in 2023 to Ps. 2,487 million in 2024, with operating expenses as a percentage of net sales rising from 6% to 7% [5][39] - **Operating Income**: Decreased by 23% from Ps. 7,603 million in 2023 to Ps. 5,830 million in 2024, with operating income as a percentage of net sales at 17% for 2024 compared to 18% for 2023 [7][39] - **EBITDA**: Fell by 21% from Ps. 8,638 million in 2023 to Ps. 6,864 million in 2024 [8][39] Other Financial Metrics - **Comprehensive Financial Cost**: Shifted from a net expense of Ps. 1,588 million in 2023 to a net income of Ps. 6,630 million in 2024, driven by improved net interest income and a significant net exchange income [11][39] - **Income Taxes**: Tax expense decreased from Ps. 1,740 million in 2023 to Ps. 987 million in 2024, reflecting a deferred tax income of Ps. 370 million in 2024 [12][39] - **Liquidity and Capital Resources**: Total consolidated debt remained stable, with medium-term notes due 1998 and accrued interest showing slight variations between 2023 and 2024 [14][39] Quarterly Performance - **Fourth Quarter 2024 vs. Third Quarter 2024**: Net sales increased from Ps. 8,549 million to Ps. 8,830 million, with total sales outside Mexico rising by 19% [15][26] - **Fourth Quarter 2024 vs. Fourth Quarter 2023**: Net sales increased by 1% from Ps. 8,738 million to Ps. 8,830 million, while sales in Mexico decreased by 20% [26][38] - **Operating Income**: Improved from Ps. 927 million in Q4 2023 to Ps. 1,389 million in Q4 2024, with operating income as a percentage of net sales rising from 11% to 16% [31][38]

Core Insights - Aduna is set to launch Number Verification and SIM Swap APIs in the United States, enhancing security and fraud detection for developers and enterprises [1][10] - This collaboration involves major telecom operators AT&T, T-Mobile, and Verizon, marking a significant milestone in the mobile ecosystem [2][3] Group 1: API Launch and Features - The Number Verification API will securely verify mobile numbers through operator networks, improving user authentication and reducing fraud risks [5][6] - The SIM Swap API will provide protection against unauthorized SIM swaps, a common method for account takeover fraud [6] - Both APIs are expected to be available nationwide in 2025, setting new standards for customer trust and safety [5][6] Group 2: Industry Collaboration and Innovation - The collaboration among AT&T, T-Mobile, and Verizon aims to drive interoperability and foster industry-wide innovation [3][4] - By unifying network capabilities, this initiative will create new opportunities in sectors like financial services, e-commerce, and digital identity [4] - Aduna's platform, based on the CAMARA open-source project, will empower developers to create advanced applications across multiple sectors [8][9] Group 3: Future Outlook - The launch of these network APIs is expected to strengthen U.S. leadership in the global API economy and catalyze innovation worldwide [9] - Aduna aims to enable developers to build smarter, more secure digital services, driving industry transformation [10]