In H1, the cumulative operating revenue of key steel enterprises under the statistics of CISA reached 2,998.5 billion yuan, down 5.79% YoY; operating costs amounted to 2,805.5 billion yuan, down 6.83% YoY; total profits stood at 59.2 billion yuan, up 63.26% YoY; and the average profit margin was 1.97%, up 0.83 percentage points YoY. "In the first half of the year, the steel industry actively responded to the challenges of strong supply and weak demand, strengthened industry self-discipline, adjusted production pace, and achieved a steady decline in crude steel production, year-on-year improvement in economic benefits, and continuous enhancement in environmental protection levels. The overall operation of the industry was better than expected," said Zhao Minge, President of the China Iron and Steel Association. Self-discipline and production control to stabilize operations were the core reasons for the industry's profit improvement. On one hand, it maintained low steel inventory, a basically balanced supply and demand, and relatively stable steel prices; on the other hand, it led to a decline in demand for raw materials and fuels and a downward shift in the cost center.