China Steel : Preliminary Result November2022

China Steel Corporation Preliminary Result November2022

Date：2022/12/26

November 2022	Unit：NTD Thousands
Item	This Month	Last Month	Accumulated, as of November 2022	Accumulated, the same period of previous year
Consolidated Operating Revenues	32,018,052	32,387,902	418,596,238	427,329,608
Consolidated Operating Income	(2,234,793)	(1,861,270)	21,147,681	74,056,968
Consolidated Income Before Income Tax	(2,767,362)	(1,448,276)	26,232,682	78,451,711
Notes: 1.The accumulated preliminary consolidated operating revenues as of November 2022 totaled NT$418,596,238 thousand. The accumulated preliminary consolidated operating income totaled NT$ 21,147,681thousand. The accumulated preliminary consolidated income before income tax totaled NT$ 26,232,682thousand. 2.Information for the Company's carbon steel sales volume (non-consolidated basis) is as follows: Accumulated sales volume of carbon steel as of November 2022 totaled 7,977,972 tons. 3. Accumulated performance summary: The accumulated preliminary consolidated income before income tax decreased compared to that of theprevious year. The ASP of steel department increased comparing to the same period of last year, but thesales volume decreased, together contributing to the slightly lower consolidated operating revenues. At thesame time, the increase in ASC surpassed that in ASP contributed to the lower consolidated operatingincome and income before income tax. As global inflation is showing signs of having peaked, the Fed is expected to slow the pace of interest ratehike and the US dollar index starts to fall, stimulating capital flows to shift back to the financial and trademarkets and causing international offers of bulk commodities to rebound. Looking into next year, thesupply-demand condition turns positive and the worldsteel previously projected that steel demand will see agrowth of 1.0% to reach 1,815 Mt, with India and ASEAN showing the strongest growth of 6.7% and 6.0%.As China gradually lifts COVID restrictions, demand is expected to be further revised up. While steel priceis supported by the high raw material cost, the steel mills in the EU, US, and Asia keep cutting productionand raising price recently. The bottoming-out trend of international steel market is confirmed and thepossibility of an U-shaped rebound is high. The steel market is expected to pick up progressively in nextyear.

Comparison between the accumulated number as of this month and the same period of previous year
Item	Accumulated, as of November 2022	Accumulated, the same period of previous year	Difference	Difference in percentage
Consolidated Operating Revenues	418,596,238	427,329,608	(8,733,370)	(2)
Consolidated Operating Income	21,147,681	74,056,968	(52,909,287)	(71)
Consolidated Income Before Income Tax	26,232,682	78,451,711	(52,219,029)	(67)