Maanshan Iron & Steel 2025 Results: Net Loss Shrinks to RMB0.21 Billion, Cash Flow and Leverage Improve

Maanshan Iron & Steel Company Limited released its 2025 annual results, showing a sharp recovery from the deep loss recorded in 2024.

Revenue fell 5.25 % year on year to RMB77.52 billion, reflecting weaker steel prices and softer downstream demand. Nevertheless, disciplined cost controls lifted gross margin on core iron-and-steel operations by 5.29 percentage points to 4.35 %.

Net loss attributable to shareholders narrowed to RMB0.21 billion, a RMB4.45 billion improvement versus 2024. Operating profit swung to a positive RMB0.15 billion from a RMB4.72 billion loss. Weighted ROE was –0.88 %, up 17.42 percentage points.

Cash generation strengthened: net operating cash inflow surged to RMB4.15 billion (2024: RMB0.96 billion), aided by lower raw-material costs and tighter working-capital management. Total debt fell as interest-bearing liabilities were cut by RMB6.10 billion; long-term borrowings dropped 44.39 %. The year-end cash balance jumped 82.93 % to RMB11.77 billion, partly funded by Baosteel’s RMB9.00 billion investment for a 49 % stake in subsidiary Magang Limited.

Asset optimization continued. Construction-in-progress rose 148.48 % as the company advanced projects such as the No. 6 galvanizing line and No. 3 section-steel caster, while non-core subsidiaries were merged or dissolved, trimming the group structure.

Segment highlights: • Automotive sheet shipments increased 6.3 % to 2.34 million tonnes; special-steel output rose 16 %, with high value-added grades exceeding 30 % of segment volume. • Section-steel exports hit a record 0.93 million tonnes, up 33 %. • Changjiang Steel, the long-product arm, swung to RMB236 million profit before tax, up RMB1.22 billion year on year, after adopting flat management and market-based pay reform.

Despite the progress, the board proposed no dividend for 2025, citing the residual loss and continued investment requirements. Deloitte Touche Tohmatsu issued an unqualified audit opinion.

Looking ahead, management targets 2026 output of 18.83 million tonnes of pig iron and 20.97 million tonnes of crude steel, with strategic focus on premium products, cost-effective operations, and deeper integration with Baosteel to bolster competitiveness amid expected further contraction in domestic steel demand.