Mei Ri Jing Ji Xin Wen·2025-05-24 06:07Core Viewpoint - Chongqing Steel aims to achieve profitability by 2025, having reported a significant reduction in losses in Q1 2024 compared to previous periods, despite ongoing challenges in the steel industry [1][5][8]. Financial Performance - In Q1 2024, Chongqing Steel reported a revenue of 27.244 billion yuan, a year-on-year decrease of 30.71%, and a net loss attributable to shareholders of 3.196 billion yuan, marking the third consecutive year of losses [5]. - The company achieved a monthly reduction in losses, with a total profit of 5.13 million yuan in March 2024, indicating a turnaround in performance [5][8]. Strategic Goals - The company has set a target for 2025 to maintain positive cash flow, achieve gross profit greater than zero, and ultimately attain a net profit [8]. - Chongqing Steel plans to enhance its product structure and upgrade its variety offerings, focusing on high-end steel products, with Q1 2024 sales proportions for thick plates and hot-rolled steel reaching 46% and 54%, respectively [1][8]. Industry Context - The steel industry is currently facing a supply-demand imbalance, with overall profitability under pressure, leading to a forecasted slight decline in steel demand for 2025 [5][8]. - The company acknowledges that its losses are largely tied to the broader industry conditions, which are characterized by excess supply and declining demand [5]. Collaboration and Resource Strategy - Chongqing Steel collaborates with Baowu Steel Group for resource management and production guidance, balancing both centralized and autonomous operations [9].