China Steel : Preliminary Result January 2023

January 2023	Unit: thousands of NT$
Item	This Month	Last Month	Accumulated, as of January 2023	Accumulated, the same period of previous year
Consolidated Operating Revenues	26,244,553	30,971,250	26,244,553	40,027,506
Consolidated Operating Income	(1,031,149)	(2,882,328)	(1,031,149)	5,247,391
Consolidated Income Before Income Tax	(1,092,181)	(2,974,086)	(1,092,181)	5,487,472
Notes: 1.The preliminary consolidated operating revenues in January 2023 totaled NT$ 26,244,553 thousand. The preliminary consolidated operating loss totaled NT$ 1,031,149 thousand. The preliminary consolidated loss before income tax totaled NT$ 1,092,181 thousand. 2.Information for the Company's carbon steel sales volume (non-consolidated basis) is as follows: The sales volume of carbon steel in January 2023 totaled 548,971 tons. Accumulated sales volume of carbon steel as of January 2023 totaled 548,971 tons. 3. Monthly performance summary: The sales volume and price of steel department decreased compared with last month, contributing to the lower operating revenues. However, the operating loss and loss before income tax decreased simultaneously as a result of the decrease in COGS being larger than that in revenues and the profit from selling vessels. As global inflation cools and the negative economic impact from Russo-Ukrainian War dissipates, the energy price has dropped significantly, the economic situation in the EU and the US has stabilized and turned positive, and the manufacturing sector in main economies has been back in growth territory. The large earthquake in southern Turkey has blocked part of the production and shipments of main local steel mills, which may lower steel export so as to support domestic rebuild demand. This is expected to bring up steel demand in the EU and the global steel market is entering the traditional peak season in Q2. Currently, the U-shaped rebound of global steel price has been in the upward trajectory. Benefiting from the ease of Covid control in China and the bottoming out of the EU and the US manufacturing activities, the steel-using sector has actively restocked, and the leading steel mills in Europe, US, and Asia have been raising price. The global steel price is highly possible to increase further. Following the global spot trend, CSC announced relatively mild price increase to save some growth momentum for the future

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	26,244,553	30,971,250	(4,726,697)	(15)
Consolidated Operating Loss	(1,031,149)	(2,882,328)	1,851,179	64
Consolidated Loss Before Income Tax	(1,092,181)	(2,974,086)	1,881,905	63

Comparison between the accumulated number as of this month and the same period of previous year	Unit: thousands of NT$
Item	Accumulated, as of January 2023	Accumulated, the same period of previous year	Difference	Difference in percentage(%)
Consolidated Operating Revenues	26,244,553	40,027,506	(13,782,953)	(34)
Consolidated Operating Income (Loss)	(1,031,149)	5,247,391	(6,278,540)	(120)
Consolidated Income Before Income Tax	(1,092,181)	5,487,472	(6,579,653)	(120)