Hunan Valin Steel Corrects Unit Label in 2026 Interim Report Subsidiary Table

Hunan Valin Steel released a correction announcement on the evening of September 11 regarding its 2026 interim report, correcting a unit labeling error in a table disclosed in the interim report published on August 22. Upon verification, the unit label in the table header on page 19, under Section III Management Discussion and Analysis, Part VIII Analysis of Major Controlled and Participating Companies, was incorrect and was changed from yuan to ten thousand yuan. The correction involves four major subsidiaries, namely Valin Xiangtan Steel, Valin Lianyuan Steel, Valin Hengyang Steel and the automotive sheet company, as well as participating companies that contributed 10% or more to the company's net profit. The table covers registered capital, total assets, net assets, operating revenue, operating profit and net profit. The company said the correction does not involve any adjustment to its financial statements and will not affect its financial position or operating results for the first half of 2026.

According to the 2026 interim report, Hunan Valin Steel recorded total operating revenue of RMB 61.203 billion in the first half, including operating revenue of approximately RMB 60.917 billion, down 2.99% year on year. Total profit, net profit and net profit attributable to owners of the parent company were RMB 842 million, RMB 571 million and RMB 225 million, respectively. Net profit attributable to shareholders of the listed company was approximately RMB 225 million, down 87.11% from approximately RMB 1.748 billion in the same period of 2025. Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was approximately RMB 220 million, down 85.53% year on year. Basic earnings per share were RMB 0.0327, down 87.12% year on year. The weighted average return on equity was 0.41%, down 2.79 percentage points from the same period of 2025.

During the reporting period, net cash flow from operating activities was approximately RMB 2.265 billion, down 42.62% year on year. As of the end of the reporting period, total assets were approximately RMB 160.330 billion, up 7.94% from the end of 2025. Net assets attributable to shareholders of the listed company were approximately RMB 54.667 billion, down 1.85% from the end of 2025.

In the secondary market, as of September 11, Hunan Valin Steel's latest closing price was RMB 3.52, down 34.50% year to date in 2026, with a period high of RMB 6.86 and a low of RMB 3.22. In terms of monthly performance, the stock closed at RMB 5.07 at the end of March, down 24.44% for the month. It continued to decline from April to June, closing at RMB 3.47 at the end of June. It rebounded 13.26% to RMB 3.93 in July and fell back to RMB 3.63 at the end of August.