Chongqing Iron & Steel Company Limited (abbrev. Chongqing Iron & Steel) released its unaudited financial results for the six months ended 30 June 2026.

Financial Highlights • Revenue fell 9.62% year on year to RMB 11.83 billion. • Net loss attributable to shareholders widened to RMB 178.90 million from RMB 131.02 million a year earlier. • Net loss after non-recurring items was RMB 202.56 million (H1 2025: RMB 140.51 million). • Basic loss per share increased to RMB 0.02 (H1 2025: RMB 0.01). • Net cash generated from operations declined 36.09% to RMB 562.68 million. • Total assets rose 2.26% since end-2025 to RMB 32.81 billion; equity attributable to shareholders increased 5.99% to RMB 14.75 billion following a June share placement.

Operational Performance • Industry headwinds persisted as oversupply and firm raw-material costs compressed margins. • Management reported a quarterly turnaround to profit in Q2 2026 after significant Q1 losses, citing tighter cost control and improved product mix. • Sector rankings advanced: profit per tonne of steel and return on equity each improved by 13 percentiles versus 2025. • Energy-saving initiatives reduced purchased energy costs by RMB 27 per tonne; the blast-furnace fuel ratio fell 20 kg/t to a two-year low. • High-value steel grades gained traction, lifting specialty-steel shares of hot-rolled coil and plate sales by 17 and 9 percentage points, respectively.

Cost and Expense Trends • Cost of sales decreased 9.32% to RMB 11.73 billion, broadly in line with revenue contraction. • R&D spending almost doubled year on year to RMB 28.70 million as the number of projects and participants increased. • Finance expenses were stable at RMB 78.17 million. • Inventories expanded, contributing to lower operating cash flow.

Segment Review • Steel products contributed 93.20% of revenue; hot-rolled coils generated RMB 6.89 billion, down 15.12% year on year. • Plate sales reached RMB 3.66 billion, an 8.02% decline. • Steel billet revenue surged 277.46% to RMB 447.53 million on higher volumes. • Gross margin for core iron-and-steel operations slipped 0.50 percentage points to 0.61%.

Balance Sheet and Financing • Short-term and long-term borrowings totaled RMB 4.47 billion at period-end. • The asset-liability ratio improved slightly to 55.07%. • On 22 June 2026, the company issued 757.58 million A-shares to Hwabao Investment at RMB 1.32 each, raising net proceeds of approximately RMB 993.70 million and lifting total shares outstanding to 9.61 billion.

Cash Flow • Investing cash outflow narrowed to RMB 213.28 million, as prior-year time deposits matured, partly offsetting capital expenditures of RMB 530.10 million. • Financing cash inflow rose to RMB 635.88 million, reflecting new equity and additional bank borrowings.

Management Outlook for H2 2026 Chongqing Iron & Steel plans to: 1. Optimise ore and coal procurement and reduce raw-material inventories. 2. Raise the share of high-value specialty steels and accelerate destocking. 3. Target reductions in hot-metal cost, energy consumption and quality-related losses through process upgrades. 4. Control its asset-liability ratio by tightening inventory and receivables. 5. Expand digital cost-accounting systems for full-process monitoring.

Dividend No interim dividend was declared due to cumulative negative retained earnings.

Governance The company reported full compliance with Hong Kong’s Corporate Governance Code and confirmed directors’ adherence to the Model Code for Securities Transactions. The unaudited interim accounts were reviewed by the Audit and Risk Committee.