Honglu Steel Structure Reports Q1 Capacity of 1.15–1.20 Million Tons, with Total Guarantee Limit of RMB 18.0601 Billion for Subsidiaries

Q1 Order Backlog Extends to Mid-June, Capacity Reaches 1.15–1.20 Million Tons

Honglu Steel Structure’s order backlog for the first quarter has been scheduled through mid-June, with production capacity reaching 1.15–1.20 million tons, representing a year-on-year output increase of approximately 7–8%. The company has set a total guarantee limit of RMB 18.0601 billion for its subsidiaries and aims to achieve an annual output exceeding 6 million tons by 2026.

Operational Performance

According to an industry tracking report released on April 1, 2026, the company’s order backlog extends to mid-June, with a lead time of 70–80 days—a significant improvement compared to the same period in 2025. Q1 capacity stood at 1.15–1.20 million tons, with actual output of approximately 500,000 tons, up 7–8% year-on-year. Amid a saturated order pipeline, the company has reduced discounting for rush orders, indirectly improving profitability. At the same time, the application of intelligent technologies continues to deepen, with welding robots already delivering cost reductions at scale.

Related-Party Transactions

On March 10, 2026, the company announced a total guarantee limit of RMB 18.0601 billion for its subsidiaries in 2026. As of the announcement date, cumulative guarantees amounted to RMB 8.294 billion, representing 86.27% of the company’s net assets as of the end of 2024. Recently, the company signed an agreement with Ping An Bank Hefei Branch to provide a guarantee of RMB 300 million for Hubei Honglu Steel Structure Co., Ltd., valid until February 10, 2027.

Company Performance Target

Additionally, the company has set a target of exceeding 6 million tons in annual output by 2026. Given the strong order book in the first quarter, this goal is highly achievable.