CHONGQING IRON (01053) announced that according to preliminary calculations by its finance department, the company expects to record a net loss attributable to shareholders of RMB 210 million to RMB 230 million for the first three quarters of 2025. Compared to the same period last year, this represents an expected loss reduction of RMB 1.12 billion to RMB 1.14 billion. The company expects its net loss attributable to shareholders after excluding non-recurring items to be RMB 220 million to RMB 240 million for the first three quarters of 2025, representing an expected loss reduction of RMB 1.11 billion to RMB 1.13 billion compared to the same period last year.

The announcement stated that the main reasons for the significant reduction in expected losses include: (1) "Procurement cost reduction" and "sales profit enhancement" working in tandem to significantly improve profitability: On the procurement side, the company deepened its localized sourcing layout, implemented precise inventory control, and optimized QP structure (monthly warehouse entry ratio maintained steadily above 50%), achieving precise procurement cost reduction. On the sales side, through channel expansion, structural optimization, and business model adjustments, the company drove up the percentile value of plate and coil products. Combined with increased price-locking ratios during market downturns and stable high-grade steel proportions, this further enhanced product added value and competitiveness. (2) "Cost reduction" and "efficiency improvement" proceeding on dual tracks to strengthen risk resilience: On one hand, the company promoted lean management throughout the entire production process, strictly controlling costs through technological optimization and efficient resource utilization. Solid waste recycling for production reached annual highs, steel material consumption achieved annual optimum levels, and the strong-sticky coal ratio dropped to annual lows, with energy utilization efficiency steadily improving, comprehensively driving down manufacturing costs. On the other hand, the company continued to advance refined management and control, with ore inventory reaching historical lows and risk management capabilities continuously optimized.