Core Viewpoint - Maanshan Iron & Steel Co., Ltd. (Ma Steel) is currently focusing on increasing its direct supply ratio to customers, which stands at approximately 40%, with a higher ratio in plate and special steel products compared to long products [1] Group 1 - The overall direct supply ratio of Ma Steel is around 40%, with plate and special steel products having a higher direct supply ratio than long products [1] - The company acknowledges that its direct supply ratio is still lower than that of Baosteel Co., Ltd. (Baosteel) due to the warehouse-style sales model for long products [1] - Ma Steel plans to enhance its direct supply ratio in the plate sector by learning from best practices and optimizing its sales system to gradually approach Baosteel's direct supply level [1] Group 2 - The company aims to deepen its focus on regional markets and expand its reach to small and medium-sized end-users [1] - Ma Steel intends to systematically optimize its channel structure by reducing orders from distributors and promoting steady increases in order volumes and market share from end customers [1] - The goal is to continuously strengthen the overall competitiveness of its direct sales system [1]

Core Viewpoint - The company expects to report a net profit of approximately -0.75 billion RMB for the first half of 2025, which represents a reduction in losses of about 10.70 billion RMB compared to the same period last year [1][2]. Performance Forecast - The performance forecast period is for the first half of 2025 [1]. - The company anticipates a net profit attributable to shareholders of approximately -0.75 billion RMB, a decrease in losses of about 10.70 billion RMB compared to the same period last year. The net profit after deducting non-recurring gains and losses is expected to be around -1.13 billion RMB, which is a reduction in losses of approximately 11.24 billion RMB compared to the previous year [1][2]. - The forecasted performance has not been audited by registered accountants [1]. Previous Year Performance - In the first half of 2024, the net profit attributable to shareholders was -11.45 billion RMB, and the net profit after deducting non-recurring gains and losses was -12.37 billion RMB [1]. Reasons for Performance Improvement - The improvement in performance is attributed to enhanced industry self-discipline and overall stable industry operations, leading to better corporate efficiency. The company has adhered to the "Four Have" operational principles, improved efficiency through reform and innovation, and focused on product management to optimize product structure [2]. - The company has implemented comprehensive cost reduction and quality enhancement measures, resulting in a reduction of approximately 91 RMB in cost per ton of steel compared to the previous year. Special steel products have achieved positive gross margins for four consecutive months, while long products have done so for five consecutive months [2]. - The net income from non-recurring gains and losses includes gains from the disposal of non-current assets and government subsidies, amounting to approximately 0.38 billion RMB [2].