Hunan Valin Steel (000932) investor relations material

Executive summary

• Revenue for H1 2026 was ¥60.92 billion, down 2.99% year-over-year; net profit attributable to shareholders fell 87.11% to ¥225 million.

• Operating cash flow decreased 42.62% year-over-year to ¥2.26 billion.

• The company focused on high-end, differentiated steel products, with key product steel sales ratio rising to 69.1%.

• Export volume increased 22% year-over-year, reaching 764,200 tons.

• Significant R&D and innovation, with 345 new patents and 112 new products developed.

Financial highlights

• Gross margin for steel segment was 8.66%, down 2.34 percentage points year-over-year.

• Total assets at period end were ¥160.33 billion, up 7.94% from year-end 2025.

• Net assets attributable to shareholders decreased 1.85% to ¥54.67 billion.

• Basic and diluted EPS were ¥0.0327, down 87.12% year-over-year.

• R&D investment was ¥2.51 billion, down 11.78% year-over-year.

Outlook and guidance

• The company will continue to focus on high-end, low-carbon, and intelligent transformation.

• Plans to further increase the proportion of high-end steel, enhance cost control, and expand green product certification.

• Expects ongoing industry pressure from weak demand and high raw material costs, but sees long-term opportunities in manufacturing upgrades and green transformation.