Baosheng Media Group Holdings Limited

Baosteel reported H1 revenue of RMB170.2 billion, net profit attributable to the parent of RMB4.55 billion, EBITDA of RMB17.12 billion, and operating cash flow from activities excluding the finance company of RMB11.31 billion. EPS was RMB0.2 and ROE was 2.32%. Management said profit declined year over year mainly because steel selling prices fell, while costs also came down, with cost contributions down RMB13.1 billion versus last year. In Q2 vs. Q1, revenue rose to above RMB200 billion from around RMB179 billion, and EPS also improved sequentially. For the full year and second half, management said crude steel output should be unchanged or slightly down from last year, demand remains weak in construction-related end markets, and raw material prices are expected to stay volatile, with iron ore lower in H2 than H1.

Zou Jixin framed the quarter as a proof point that Baosteel can still earn solid profit in a very difficult market, emphasizing resilience, cost discipline, and product competitiveness. He repeatedly stressed the company’s transformation toward production-sales-R&D integration, differentiated products, overseas expansion, and green/low-carbon technologies. His tone was confident but cautious: he said near-term demand has not shown meaningful improvement, and the second half could look similar to the first half.

Fu Jianguo focused on the financial and policy backdrop for decarbonization, noting that steel accounts for about 15% of carbon emissions while contributing around 5% of GDP in China. He said the industry faces a difficult transition because the asset base is heavy and the payback on carbon reduction is unclear without stronger policy and economic support. He described Baosteel’s preparations as extensive, including carbon data systems, lifecycle carbon-footprint verification, third-party certification, and product-level carbon audits already used for some products.

Analysts pressed management on overseas expansion, one-company-multiple-base management, audit quality, 2024 capacity targets, carbon-market inclusion, supply-demand trends, and silicon steel pricing. Management said Saudi Arabia is the key overseas project, but the company is also studying Belt and Road and Middle East opportunities, with a cautious approach to M&A and resource selection. On capacity and output, Baosteel said it is following government guidance, expects industry capacity to keep consolidating, and will only take profitable orders; on silicon steel, management said the weak pricing reflects oversupply in low- and mid-end products, while high-end silicon steel remains profitable.