Chongqing Iron & Steel (01053) tumbled more than 3% in Hong Kong trading, with shares sliding 2.7% to HK$1.44 by press time amid a HK$99.85 million turnover.

The steelmaker's July 14 profit warning projected a H1 2025 net loss attributable to shareholders of RMB120 million to RMB140 million - representing a dramatic RMB549 million to RMB569 million year-on-year improvement. Adjusted net loss excluding non-recurring items is anticipated between RMB130 million and RMB150 million, narrowing RMB541 million to RMB561 million from 2024 levels.

Two transformational initiatives fueled this substantial loss reduction:

First, procurement-sales integration turbocharged operational capabilities. Sourcing teams aggressively expanded regional supplier networks and timed raw material purchases to capitalize on market dips, slashing procurement expenses. Concurrently, sales divisions executed agile pricing strategies, deepened regional coordination, and optimized product portfolios - collectively driving breakthroughs in new client acquisition, market share growth, and specialty steel penetration.

Second, rigorous cost discipline yielded significant dividends. Centralized production management and lean manufacturing protocols boosted production line efficiency through precision scheduling and strict process controls. These measures dramatically lowered unit manufacturing costs while improving critical operational metrics including blast furnace utilization rates, smelting cycle times, and hot metal delivery ratios during the reporting period.