en.Wedoany.com Reported - Dimension News, Shanxi Taigang Stainless Steel Co., Ltd. (TISCO Stainless Steel, 000825.SZ) reported a total profit of 53 million yuan in the first quarter of 2026, a decrease of 152 million yuan compared to the same period last year, primarily due to the narrowing purchase-sale price spread in the market. The company achieved operating revenue of 22.213 billion yuan in the first quarter, down 4.71% year-on-year; net profit attributable to shareholders was 20.1783 million yuan, down 89.26% year-on-year.
In the first quarter, the company's crude steel output reached 3.28 million tons, achieving 97.1% of the plan, including 1.38 million tons of stainless steel, achieving 97.6% of the plan. By product category, prices of carbon steel coils and silicon steel fell year-on-year, while the iron ore Platts index remained largely flat year-on-year at a high level, leading to a decline in carbon steel profitability; for the 300 series stainless steel, the selling price of the representative product 304 cold-rolled sheet increased more than the rise in raw material costs of chromium and nickel, improving profitability; for the 400 series, the selling price of the representative product 430 cold-rolled sheet rose less than the increase in the main raw material ferrochrome, reducing profitability. The company's gross margin for the first quarter was 0.97%, down 0.23 percentage points year-on-year.
In terms of cost control, the company is shifting to an inquiry-based nickel procurement system. In 2025, over 80% of TISCO Stainless Steel's nickel demand was met by Indonesian nickel pig iron (NPI), while chromium and coking coal supplies were secured through long-term contracts with Chinese suppliers.
On the operational front, since September 2025, TISCO Stainless Steel has been entrusted by its controlling shareholder, TISCO Group, to manage the 73.97% equity stake in Ningbo Baoxin Stainless Steel Co., Ltd., exercising the operational and management rights related to the entrusted equity. The company stated that if there are future implementation arrangements for injecting Ningbo Baoxin into the listed company, it will promptly disclose them in strict accordance with regulatory requirements. Currently, the company has no specific plans for capacity acquisitions, but does not rule out the possibility of such events in the future.
On May 18, 2026, the Ministry of Industry and Information Technology released the revised "Implementation Measures for Capacity Replacement in the Steel Industry," setting a two-year transition period (until May 2028). After the transition period, pure cross-enterprise capacity replacement will be prohibited, and capacity transfer can only be achieved through substantive mergers and acquisitions. Against this backdrop, TISCO Stainless Steel is considering increasing capacity through acquisitions in the future. The company stated that the policy, through measures such as high replacement ratios and strict control over cross-enterprise capacity transactions, will promote the development of the stainless steel industry towards centralization, high-end products, and low-carbon practices.
Facing a market situation of strong supply and weak demand in the steel industry, with steel prices fluctuating downward, the company continues to deepen cost-conscious operations, optimize product mix, and advance measures to tap potential and increase efficiency, such as using economical raw materials to reduce costs. TISCO Stainless Steel has formed a coordinated layout across three major bases: the Taiyuan headquarters, Shandong Xinha, and Tianjin. The Taiyuan headquarters has a capacity of 12.94 million tons (including 4.5 million tons of stainless steel), covering the full range of plates, strips, profiles, pipes, and wires, as well as ultra-wide, ultra-thick, and ultra-thin extreme specification products.
