In its evening announcement on July 14th, TISCO Stainless Steel provided a performance forecast for the first half of 2023, anticipating a net loss of 470 million yuan to 570 million yuan attributable to shareholders of the listed company. This represents a transition from profit to loss compared to the previous year, with basic earnings per share expected to be a loss of 0.083 yuan to 0.1 yuan, in contrast to a profit of 0.353 yuan per share in the same period last year.
The main reason for the performance change in the first half of 2023 is the complex and challenging domestic and international economic situation. The downstream industries in the domestic market have been weak, leading to a significant contraction in steel demand. The steel industry has entered a downward phase in the cycle, and the steel product prices have declined more than the raw material prices, while some stainless steel raw material prices have increased. This has resulted in a significant reduction in profit margins for steel products, leading to a loss for the company in the first half of 2023. To cope with the challenging market conditions, the company has strengthened the connection between production and sales and adhered to a cost-conscious approach. Through various measures such as benchmarking, cost reduction, and efficiency improvement through differentiated products, the company has mitigated several external unfavorable factors. The performance in the second quarter was better than the first quarter, ensuring stable production and operation.
(To contact the reporter on this story: leo.ji@steelhome.cn or 86-555-2238932 18616060095) |
