China Steel : Preliminary Result July 2023

Date：2023/08/28

July 2023	Unit: thousands of NT$
Item	This Month	Last Month	Accumulated, as of June 2023	Accumulated, the same period of previous year
Consolidated Operating Revenues	28,220,608	30,216,859	214,923,478	288,007,437
Consolidated Operating Income	(1,144,986)	(158,456)	266,806	28,495,484
Consolidated Income Before Income Tax	(401,445)	(35,030)	1,281,958	31,514,058
Notes: 1.The preliminary consolidated operating revenues in July 2023 totaled NT$ 28,220,608 thousand. The preliminary consolidated operating loss totaled NT$ 1,144,986 thousand. The preliminary consolidated loss before income tax totaled NT$ 401,445 thousand. 2.Information for the Company's carbon steel sales volume (non-consolidated basis) is as follows: The sales volume of carbon steel in July 2023 totaled 610,673 tons. Accumulated sales volume of carbon steel as of July 2023 totaled 4,468,005 tons. 3. Monthly performance summary: The decrease of operating revenues and the increase of operating loss are mainly due to the decrease in ASP and gross profits of the steel departments. In addition, dividends from mining investments result in the increase of non-operating income. Inflation in Europe and the United States has slowed down but interest rates continue to remain high, and the Fed's monetary policy will still focus on curbing inflation until the end of the year. Since the central banks of many countries have accelerated interest rate hikes, corporates' financing costs have increased, which in turn affects consumption and investment. Declining international trade orders and China's economic downturn and housing market turmoil impact the financial system and consumer confidence. Due to weak terminal demand, the global industrial chain passively adjusts inventory. Affected by fluctuations in the international situation, Taiwan's economy has shown stable domestic demand and sluggish export sales. The Department of Statistics of the Ministry of Economic Affairs announced that export orders in June fell by 24.9% year-on-year, declining for ten consecutive months. However, recent economic data have shown signs of bottoming out. In United States, employment data outperform. The Bank of Japan reiterates its policy to maintain monetary easing. The Chinese government continues to expand economic stimulus policies to boost consumer confidence in the auto market and housing market. These will help the global economy return to the expansion track. The steel market will also return to the situation of balanced supply and demand between upstream and downstream, linking up the arrival of the peak season of traditional industries in the fourth quarter.

Comparison between the number for this month and last month	Unit: thousands of NT$
Item	This Month	Last Month	Difference	Difference in percentage(%)
Consolidated Operating Revenues	28,220,608	30,216,859	(1,996,251)	(7)
Consolidated Operating Income (Loss)	(1,144,986)	(158,456)	(986,530)	(623)
Consolidated Income (Loss) Before Income Tax	(401,445)	(35,030)	(366,415)	(1,046)

Comparison between the accumulated number as of this month and the same period of previous year	Unit: thousands of NT$
Item	Accumulated, as of June 2023	Accumulated, the same period of previous year	Difference	Difference in percentage(%)
Consolidated Operating Revenues	214,923,478	288,007,437	(73,083,959)	(25)
Consolidated Operating Income (Loss)	266,806	28,495,484	(28,228,678)	(99)
Consolidated Income (Loss) Before Income Tax	1,281,958	31,514,058	(30,232,100)	(96)