China Steel : Preliminary Result March 2023

Date：2023/04/24

March 2023	Unit: thousands of NT$
Item	This Month	Last Month	Accumulated, as of March 2023	Accumulated, the same period of previous year
Consolidated Operating Revenues	33,846,889	31,254,510	91,345,952	115,211,993
Consolidated Operating Income	937,606	67,513	(26,030)	13,475,033
Consolidated Income Before Income Tax	947,911	69,298	(74,972)	14,502,132
Notes: 1.The preliminary consolidated operating revenues in March 2023 totaled NT$ 33,846,889 thousand. The preliminary consolidated operating income totaled NT$ 937,606 thousand. The preliminary consolidated income before income tax totaled NT$ 947,911 thousand. 2.Information for the Company's carbon steel sales volume (non-consolidated basis) is as follows: The sales volume of carbon steel in March 2023 totaled 691,344 tons. Accumulated sales volume of carbon steel as of March 2023 totaled 1,907,522 tons. 3. Monthly performance summary: The simultaneous increase of consolidated operating revenues, operating income, and income before income tax in this month is mainly from the rise in sales volume, the slight increase of ASP and the decrease of ASC of steel department. The World Steel Association (worldsteel) released its latest Short Range Outlook (SRO) in April. The global steel demand will see a 2.3% rebound in 2023, an increase of 1.3% from the previous forecast 1.0% (in October 2022). Currently downstream steel-using sectors in Taiwan are still in the destocking stage, but the steel demand is expected to increase with the government extending the reduction of commodity tax on energy-saving home appliances and the completion of residential construction projects in the future. The market is also expected to turn positive after the transaction return to follow the fundamentals of supply and demand. On the other hand, the latest number of global crude steel output in February decreased by 1.0% to 142.4 million tons, which has been declining year-on-year for four consecutive months. The tightening steel supply under the trend of carbon neutrality will also help support steel prices. With the buyer's confidence getting better, the steel market is expected to gather a new round of rising momentum and keep improving the operational performance after the market correction.

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	33,846,889	31,254,510	2,592,379	8
Consolidated Operating Income (Loss)	937,606	67,513	870,093	1,289
Consolidated Income (Loss) Before Income Tax	947,911	69,298	878,613	1,268

Comparison between the accumulated number as of this month and the same period of previous year	Unit: thousands of NT$
Item	Accumulated, as of March 2023	Accumulated, the same period of previous year	Difference	Difference in percentage(%)
Consolidated Operating Revenues	91,345,952	115,211,993	(23,866,041)	(21)
Consolidated Operating Income (Loss)	(26,030)	13,475,033	(13,501,063)	(100)
Consolidated Income (Loss) Before Income Tax	(74,972)	14,502,132	(14,577,104)	(101)