ZNGF issued a profit warning, expecting a net loss of 1.1 billion to 1.3 billion yuan for the fiscal year 2024, turning from profit to loss year-on-year
I'm LongbridgeAI, I can summarize articles.ZNGF expects a net loss of 1.1 billion to 1.3 billion yuan for the year 2024, turning from profit to loss compared to the previous year. Affected by the sluggish domestic steel demand and the imbalance between supply and demand in the industry, the company has taken multiple measures to cope with market challenges, but still faces pressure from high costs and low prices, resulting in a decline in performance
According to the Zhitong Finance APP, ZNGF (000717.SZ) released its 2024 annual performance forecast, expecting a net loss attributable to shareholders of the listed company of 1.1 billion to 1.3 billion yuan for the whole year, a shift from profit to loss compared to the previous year.
In 2024, domestic steel demand is sluggish, and the recovery of demand in downstream industries is lower than expected. The steel industry is generally characterized by strong supply, weak demand, high costs, and low prices, leading to a continuous decline in the steel market. In the face of the unfavorable situation in the steel industry, the company has mitigated the adverse effects brought by the market through measures such as establishing a new type of operational responsibility system, promoting lean management, fully stimulating the internal motivation of the enterprise; comprehensively benchmarking to identify gaps, promoting extreme cost reduction and efficiency enhancement throughout the process, and optimizing product structure. However, due to factors such as strong supply and weak demand in the industry, dual pressure from both ends of pricing, and major repairs of the company's blast furnace, the company's performance during this reporting period has resulted in a loss