Core Viewpoint - Ansteel Co., Ltd. reported a significant loss of over 7.12 billion yuan in 2024, marking a cumulative loss exceeding 10 billion yuan over two years, amidst a challenging steel industry environment characterized by high costs and low demand [2][4]. Financial Performance - In 2024, Ansteel's operating revenue was 105.1 billion yuan, a decrease of 9.06% year-on-year, while the net loss attributable to shareholders was 7.12 billion yuan, a 118.8% increase in losses compared to 3.26 billion yuan in 2023 [2][4]. - The cash flow from operating activities was -787 million yuan, down 148.08% year-on-year, and the net cash flow from investment activities was -3.73 billion yuan, a decrease of 26.21% [2][9]. - The financing activities generated a net cash flow of 5.74 billion yuan, an increase of 1008.07% year-on-year [2][9]. Industry Context - The steel industry faced a "three highs and three lows" situation in 2024, with high production, high costs, and high exports, but low demand, low prices, and low efficiency [4]. - National statistics indicated a total crude steel production of 1.005 billion tons in 2024, a 1.7% decrease year-on-year, while steel consumption fell by 5.4% [3][4]. Company Operations - Ansteel's production volumes for iron, steel, and materials in 2024 were 24.30 million tons, 25.44 million tons, and 23.98 million tons, respectively, representing year-on-year decreases of 4.53%, 4.45%, and 2.54% [6]. - The overall gross margin for Ansteel in 2024 was -3.54%, further declining from -0.47% in 2023, with all major products showing negative margins [6][7]. Losses Compared to Peers - Ansteel's losses in 2024 were significantly higher than many of its peers, with other companies like Hualing Steel and Shandong Steel also reporting declines in net profits [4][5]. - The company attributed its losses to a continuous decline in steel prices and high raw material costs, which were not effectively passed down to downstream markets [5]. Management and Strategy - Ansteel has implemented measures to control costs and improve operational efficiency, including selective procurement and expanding export markets [5]. - Despite the losses, the company reported a strong overall cash flow situation and sufficient credit reserves for financing [10].

Core Viewpoint - Ansteel Co., Ltd. is experiencing its most challenging period, with significant declines in revenue and record losses in 2024 [1][4]. Financial Performance - In 2024, Ansteel reported operating revenue of 105.1 billion yuan, a year-on-year decrease of 9.06%, and a net loss of 7.12 billion yuan, with losses expanding by 118.8% compared to the previous year [1][2][3]. - The company's revenue has returned to levels seen six years ago, comparable to 2018, marking the worst loss in its history [1][3]. - Cumulative losses over the past two years amount to 10.38 billion yuan for net profit and 10.52 billion yuan for non-recurring net profit [3][4]. Industry Context - The steel industry is facing a downturn, with Ansteel's performance lagging behind other major players like Baosteel and Hualing Steel, which, despite declines, managed to maintain profitability [4][6]. - The steel price index has been declining while raw material prices remain high, exacerbating the industry's weak market conditions [4]. Operational Metrics - Ansteel's asset-liability ratio reached a historical high of 51.61% by the end of 2024, indicating increased financial leverage [1][11]. - The company has seen a reduction in its workforce, with employee numbers decreasing from 29,303 in 2022 to 25,028 in 2024, a decline of approximately 14.6% [1][12]. Product Performance - In 2024, Ansteel's main products operated at a loss, with an overall gross margin of -3.54%, the lowest in its history [9][10]. - Specific product lines, such as hot-rolled and cold-rolled sheets, reported negative gross margins of -5.88% and -2.07%, respectively [9][10]. Future Plans - Ansteel has announced a plan to not distribute cash dividends for 2024 and aims to optimize its asset structure while focusing on its core business [8]. - The company intends to enhance operational efficiency and profitability, with commitments to accelerate the elimination of outdated capacity and promote low-carbon transformation [8].