[Key Steel Enterprises Recorded a Total Profit of RMB 33.9 Billion in the First Half of the Year]

According to the 8th Council (Enlarged) Meeting of the 6th Session of the China Iron and Steel Association, the aggregated profits of key steel enterprises showed a monthly increase in the first half of the year, yet the profitability remained at a low level. In the first half, the total operating revenue of these key steel enterprises reached RMB 3.09 trillion, down 3.6% year-on-year; operating costs amounted to RMB 2.93 trillion, a decrease of 3.5% year-on-year; and the total profit stood at RMB 33.9 billion, a drop of 6.7% compared with the same period last year. The average sales profit margin was 1.1%, representing a decline of 0.03 percentage points year-on-year. As of the end of June, both the funds tied up in inventories and accounts receivable remained lower than the previous year, indicating that steel enterprises have achieved positive results by adhering to the principles of "producing according to sales, efficiency, and cash flow.