xinsteel(SH:600782) Zheng Quan Ri Bao Zhi Sheng·2025-08-23 03:45Core Viewpoint - Xinyu Steel Co., Ltd. reported a decline in revenue and a return to profitability in the first half of 2025, driven by strategic adjustments in production and cost management [1][2]. Financial Performance - In the first half of 2025, the company achieved operating revenue of 17.512 billion yuan, a year-on-year decrease of 18.33% [1]. - The net profit attributable to shareholders was 111 million yuan, compared to a loss of 75.4729 million yuan in the same period last year [1]. Industry Context - The steel industry continues to face weak downstream demand and high supply levels, leading to fluctuating steel prices and slow recovery in overall profitability [2]. - The company is responding to market pressures by reducing production scale to mitigate risks associated with price declines [2]. Operational Strategies - Xinyu Steel is focusing on enhancing efficiency rather than scale, optimizing production processes to improve operational metrics such as blast furnace utilization [2]. - The company has implemented cost reduction initiatives, including competitive procurement strategies and targeted cost control measures for raw materials [2][3]. Product Development - The steel industry is shifting towards high-end, intelligent, and green products, with Xinyu Steel actively promoting differentiation in its product offerings [4]. - In the first half of 2025, the company reported significant increases in sales of high-end products, with hot-rolled high-end varieties up by 97.6% and other premium products also showing substantial growth [4]. Future Outlook - Xinyu Steel aims to establish itself as a global leader in high-quality silicon steel and thick plates, planning to exit low-end trading businesses and focus on high-value-added products [5].