1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report The report presents the top ten convertible bonds for December 2025, analyzing each bond's issuer, including its financial performance, business scope, and key attractions [1][3][4]. 3. Summary by Company 3.1 Zhongte Convertible Bond - **Company Profile**: A globally leading specialized special steel material manufacturing enterprise with a production capacity of about 20 million tons of special steel materials per year [11]. - **Financial Performance**: In 2024, its operating income was 109.203 billion yuan (YoY -4.22%), and the net profit attributable to the parent was 5.126 billion yuan (YoY -10.41%). In the first three quarters of 2025, the operating income was 81.206 billion yuan (YoY -2.75%), and the net profit attributable to the parent was 4.33 billion yuan (YoY +12.88%) [11]. - **Company Highlights**: It is one of the world's most comprehensive special steel enterprises in terms of variety and specifications, with leading market shares in core products such as bearing steel and automotive steel. It has a complete industrial chain and strong cost - control capabilities, and is actively seeking external expansion [12]. 3.2 Shanlu Convertible Bond - **Company Profile**: Mainly engaged in road and bridge engineering construction and maintenance, and actively expanding into other fields. It has a complete business and management system [29]. - **Financial Performance**: In 2024, its operating income was 71.348 billion yuan (YoY -2.3%), and the net profit attributable to the parent was 2.322 billion yuan (YoY +1.47%). In the first three quarters of 2025, the operating income was 41.354 billion yuan (YoY -3.11%), and the net profit attributable to the parent was 1.41 billion yuan (YoY -3.27%) [29]. - **Company Highlights**: Controlled by the Shandong Provincial State - owned Assets Supervision and Administration Commission, it has the concept of "China Special Valuation". It is expected to benefit from infrastructure construction in Shandong and the "Belt and Road" initiative [30]. 3.3 Hebang Convertible Bond - **Company Profile**: With advantages in salt mines, phosphate mines, and natural gas supply, it has completed the basic layout in the chemical, agricultural, and photovoltaic fields [44]. - **Financial Performance**: In 2024, its operating income was 8.547 billion yuan (YoY -3.13%), and the net profit attributable to the parent was 31 million yuan (YoY -97.55%). In the first three quarters of 2025, the operating income was 5.927 billion yuan (YoY -13.02%), and the net profit attributable to the parent was 93 million yuan (YoY -57.93%) [44]. - **Company Highlights**: Its phosphate mines and salt mines contribute stable profits, and the liquid methionine business has high - margin performance [45]. 3.4 Huayuan Convertible Bond - **Company Profile**: Focused on building a complete vitamin D3 upstream - downstream industrial chain, with products including cholesterol, vitamin D3, and chemical preparations [57]. - **Financial Performance**: In 2024, its operating income was 1.243 billion yuan (YoY +13.58%), and the net profit attributable to the parent was 309 million yuan (YoY +60.76%). In the first three quarters of 2025, the operating income was 936 million yuan (YoY -0.2%), and the net profit attributable to the parent was 234 million yuan (YoY -3.07%) [57]. - **Company Highlights**: It is a leader in NF - grade cholesterol and 25 - hydroxyvitamin D3 products. It is expanding its product matrix and has a layout in the pharmaceutical manufacturing field [58]. 3.5 Xingye Convertible Bond - **Company Profile**: One of the first joint - stock commercial banks approved by the State Council and the People's Bank of China, evolving into a modern financial service group [71]. - **Financial Performance**: In 2024, its operating income was 212.226 billion yuan (YoY +0.66%), and the net profit attributable to the parent was 77.205 billion yuan (YoY +0.12%). In the first three quarters of 2025, the operating income was 161.234 billion yuan (YoY -1.82%), and the net profit attributable to the parent was 63.083 billion yuan (YoY +0.12%) [71]. - **Company Highlights**: It has stable asset quality and scale growth, with a large number of corporate and retail customers [72]. 3.6 Huanxu Convertible Bond - **Company Profile**: A global leader in electronic manufacturing design, providing value - added services to brand customers [81]. - **Financial Performance**: In 2024, its operating income was 60.691 billion yuan (YoY -0.17%), and the net profit attributable to the parent was 1.652 billion yuan (YoY -15.16%). In the first three quarters of 2025, the operating income was 43.641 billion yuan (YoY -0.83%), and the net profit attributable to the parent was 1.263 billion yuan (YoY -2.6%) [81]. - **Company Highlights**: It is a leading manufacturer of smart wearable SiP modules, with advanced packaging technologies and a global production layout [82]. 3.7 Chongyin Convertible Bond - **Company Profile**: The earliest local joint - stock commercial bank in the upper reaches of the Yangtze River and Southwest China, listed on the Hong Kong Stock Exchange and selected for the "Leading Bank" program [94]. - **Financial Performance**: In 2024, its operating income was 13.679 billion yuan (YoY +3.54%), and the net profit attributable to the parent was 5.117 billion yuan (YoY +3.8%). In the first three quarters of 2025, the operating income was 11.74 billion yuan (YoY +10.4%), and the net profit attributable to the parent was 4.879 billion yuan (YoY +10.19%) [94]. - **Company Highlights**: Benefiting from the Chengdu - Chongqing economic circle strategy, it has stable asset - scale growth and a reasonable credit strategy [96]. 3.8 Tianye Convertible Bond - **Company Profile**: The first industrial enterprise of the Xinjiang Production and Construction Corps and a leading enterprise in the chlor - alkali chemical industry, with an integrated circular economy industrial chain [103]. - **Financial Performance**: In 2024, its operating income was 11.156 billion yuan (YoY -2.7%), and the net profit attributable to the parent was 68 million yuan (YoY +108.83%). In the first three quarters of 2025, the operating income was 7.97 billion yuan (YoY +2.2%), and the net profit attributable to the parent was 7 million yuan (YoY -28.79%) [103]. - **Company Highlights**: The cost of caustic soda production is relatively fixed, and it plans to increase the dividend frequency and has coal - mine projects in progress [106]. 3.9 Aorui Convertible Bond - **Company Profile**: A company focusing on the R & D, production, and sales of complex APIs and preparations, leading in several technical fields [119]. - **Financial Performance**: In 2024, its operating income was 1.476 billion yuan (YoY +16.89%), and the net profit attributable to the parent was 355 million yuan (YoY +22.59%). In the first three quarters of 2025, the operating income was 1.237 billion yuan (YoY +13.67%), and the net profit attributable to the parent was 354 million yuan (YoY +24.58%) [119]. - **Company Highlights**: It has an optimized distributor network, expanding preparation products, and high - quality customer resources [120]. 3.10 Yushui Convertible Bond - **Company Profile**: The largest water supply and drainage integrated enterprise in Chongqing, with a stable monopoly position in the local market [133]. - **Financial Performance**: In 2024, its operating income was 6.999 billion yuan (YoY -3.52%), and the net profit attributable to the parent was 785 million yuan (YoY -27.88%). In the first three quarters of 2025, the operating income was 5.568 billion yuan (YoY +7.21%), and the net profit attributable to the parent was 779 million yuan (YoY +7.1%) [133]. - **Company Highlights**: It has a high market share in Chongqing, is expanding externally, and has effective cost - control measures [134].

Investment Rating - The industry investment rating is Neutral, maintained [9] Core Views - The expectation of overseas interest rate cuts is strengthening, which may lead to a corresponding adjustment in domestic monetary policy. The reserve requirement ratio is expected to trend downward, positively impacting short-term steel prices. Historical data shows that after 10 instances of reserve requirement cuts since 2020, the average increase in rebar prices was 20, 42, 45, 41, and 26 CNY/ton in the first five trading days post-cut, indicating a strong likelihood of price increases in the short term [2][6]. Summary by Sections Supply and Demand Dynamics - Steel inventory is being reduced smoothly, and there is a positive outlook for the real estate sector, leading to a slight increase in steel prices. However, the profitability of steel companies has not shown significant improvement due to sustained high prices of iron ore and coke. It is expected that steel production will continue to decline as companies proactively reduce inventory and conduct maintenance towards the end of the year. Demand may also weaken seasonally [4][5]. - The apparent consumption of five major steel products increased by 0.12% year-on-year but decreased by 0.81% month-on-month. The production of five major steel products decreased by 2.20% year-on-year but increased by 0.74% month-on-month, with daily molten iron production dropping to 2.3468 million tons [4][5]. Price Trends - Recent price trends show that Shanghai rebar has risen to 3,260 CNY/ton, an increase of 30 CNY/ton, while hot-rolled steel has reached 3,270 CNY/ton, up by 20 CNY/ton. The estimated profit for rebar is -134 CNY/ton, with a lagging cost profit of -99 CNY/ton [5]. Long-term Outlook - The renewed overseas interest rate cut cycle is expected to stabilize medium-term demand expectations for manufacturing. Although direct export demand for steel is limited, there is significant indirect demand through downstream sectors such as machinery, automotive, and home appliances. If overseas manufacturing recovers, it could stabilize steel manufacturing demand. The demand side for steel is expected to remain stable in 2026, driven by reduced production and improved cost structures [7][8].

Investment Rating - The report maintains an "Overweight" rating for the steel industry [5]. Core Viewpoints - Demand is expected to gradually bottom out, and supply-side market clearing has begun, indicating a potential recovery in the steel industry's fundamentals. If supply policies are implemented, the contraction in supply may accelerate, leading to quicker industry recovery [3][8]. - The report highlights a decrease in apparent steel consumption and inventory levels, with a total apparent consumption of 8.88 million tons, down 0.69% week-on-week but up 1.2% year-on-year [5][21]. - The report anticipates that the steel demand will stabilize, with a continued expectation of supply contraction. The negative impact of the real estate sector on steel demand is expected to diminish, while demand from infrastructure and manufacturing is projected to grow steadily [5][3]. Summary by Sections Steel - Steel prices have increased week-on-week, with Shanghai rebar prices rising by 30 CNY/ton to 3260 CNY/ton, a 0.93% increase. Total steel inventory decreased by 320,000 tons to 14.01 million tons [5][8]. - The operating rate of blast furnaces in 247 steel mills decreased to 81.09%, down 1.1 percentage points from the previous week [5][27]. - The average gross profit for rebar was 91 CNY/ton, up 30 CNY/ton from the previous week, while hot-rolled coil had a gross profit of -47 CNY/ton, an increase of 18.4 CNY/ton [5][36]. Raw Materials - Iron ore spot prices increased, with the price for PB powder rising by 2 CNY/ton to 793 CNY/ton, a 0.25% increase. The total inventory of iron ore at ports rose by 1% to 15.206 million tons [5][45][51]. - The total shipment volume of the four major iron ore producers decreased by 225,000 tons to 21.2 million tons [5][60]. Special Steel and New Materials - The report notes an increase in stainless steel prices and a recovery in industrial-grade and battery-grade lithium carbonate prices [5][4]. Macroeconomic Context - The crude steel production from January to October 2025 showed a year-on-year decline, with the construction and manufacturing sectors continuing to weaken [5][5.1]. Investment Recommendations - The report recommends focusing on companies with leading technology and product structures, such as Baosteel and Hualing Steel, as well as low-cost and flexible steel companies like Fangda Special Steel and New Steel [5].

Market Performance - The special steel sector increased by 2.33% on December 1, with CITIC Special Steel leading the gains [1] - The Shanghai Composite Index closed at 3914.01, up 0.65%, while the Shenzhen Component Index closed at 13146.72, up 1.25% [1] Stock Performance - CITIC Special Steel (000708) closed at 15.90, up 4.95% with a trading volume of 267,100 shares and a transaction value of 422 million [1] - Other notable performers include: - Xianglou New Materials (301160) at 61.62, up 2.87% [1] - Taiyuan Iron & Steel (000825) at 4.11, up 2.75% [1] - Jinzhu Pipeline (002443) at 8.23, up 2.11% [1] - Shengde Zhengtai (300881) at 33.47, up 1.45% [1] Capital Flow - The special steel sector experienced a net outflow of 48.91 million from institutional investors, while retail investors saw a net inflow of 35.27 million [2] - The capital flow for individual stocks shows: - Taiyuan Iron & Steel had a net inflow of 45.03 million from institutional investors [3] - Xianglou New Materials had a net outflow of 735.72 million from institutional investors [3] - Jinzhu Pipeline had a net outflow of 1,356.12 million from institutional investors [3]

Core Viewpoint - The special steel sector experienced a 1.2% increase on November 28, with Changbao Co., Ltd. leading the gains. The Shanghai Composite Index closed at 3888.6, up 0.34%, while the Shenzhen Component Index closed at 12984.08, up 0.85% [1]. Group 1: Stock Performance - Changbao Co., Ltd. (002478) closed at 7.81, with a rise of 6.26% and a trading volume of 999,300 shares, amounting to a transaction value of 780 million yuan [1]. - Jinzhu Pipeline (002443) closed at 8.06, increasing by 3.47% with a trading volume of 288,800 shares, resulting in a transaction value of 233 million yuan [1]. - Jiuli Special Materials (002318) closed at 24.85, up 1.68% with a trading volume of 64,000 shares, translating to a transaction value of 159 million yuan [1]. - CITIC Special Steel (000708) closed at 15.15, rising by 1.41% with a trading volume of 115,100 shares, amounting to a transaction value of 174 million yuan [1]. - Shengde Zhengtai (300881) closed at 32.99, up 1.26% with a trading volume of 12,100 shares, resulting in a transaction value of approximately 39.52 million yuan [1]. - Tongmei Co., Ltd. (603995) closed at 17.15, increasing by 0.94% with a trading volume of 38,400 shares, translating to a transaction value of approximately 65.30 million yuan [1]. - Fushun Special Steel (600399) closed at 5.31, up 0.76% with a trading volume of 204,100 shares, amounting to a transaction value of 108 million yuan [1]. - Taiyuan Iron & Steel (000825) closed at 4.00, increasing by 0.76% with a trading volume of 332,800 shares, resulting in a transaction value of 133 million yuan [1]. - Xining Special Steel (600117) closed at 2.90, up 0.69% with a trading volume of 216,600 shares, translating to a transaction value of approximately 62.52 million yuan [1]. - Fangda Special Steel (600507) closed at 5.98, rising by 0.17% with a trading volume of 212,200 shares, amounting to a transaction value of 127 million yuan [1]. Group 2: Capital Flow - The special steel sector saw a net inflow of 62.68 million yuan from institutional investors, while retail investors experienced a net outflow of 67.63 million yuan [3].

Core Points - The Shenzhen State-Owned Enterprises Shareholder Return Index (970064) closed at 1612.77 points, up 0.73%, with a trading volume of 20.124 billion yuan and a turnover rate of 0.78% [1] - Among the index constituents, 33 stocks rose, with China National Materials Technology leading at a 10.01% increase, while 12 stocks fell, with CITIC Special Steel leading the decline at 2.97% [1] Index Constituents Summary - The top ten constituents of the Shenzhen State-Owned Enterprises Shareholder Return Index include: - BOE Technology Group (sz000725) with a weight of 9.31%, latest price at 3.85, and a market cap of 144.043 billion yuan [1] - Hikvision (sz002415) with a weight of 7.97%, latest price at 29.99, and a market cap of 274.855 billion yuan [1] - Wuliangye Yibin (sz000858) with a weight of 7.71%, latest price at 118.51, and a market cap of 460.009 billion yuan [1] - Luzhou Laojiao (sz000568) with a weight of 6.59%, latest price at 133.59, and a market cap of 196.637 billion yuan [1] - XCMG Machinery (sz000425) with a weight of 5.75%, latest price at 10.30, and a market cap of 121.056 billion yuan [1] - Changan Automobile (sz000625) with a weight of 3.88%, latest price at 11.91, and a market cap of 118.077 billion yuan [1] - Shenwan Hongyuan (sz000166) with a weight of 3.84%, latest price at 5.14, and a market cap of 128.705 billion yuan [1] - Yunnan Aluminum (sz000807) with a weight of 3.81%, latest price at 23.54, and a market cap of 81.636 billion yuan [1] - Yanghe Brewery (sz002304) with a weight of 3.37%, latest price at 65.71, and a market cap of 68.686 billion yuan [1] - Tongling Nonferrous Metals (sz000630) with a weight of 3.18%, latest price at 6.67, and a market cap of 66.913 billion yuan [1] Capital Flow Summary - The net inflow of main funds into the index constituents totaled 425 million yuan, while retail funds saw a net outflow of 319 million yuan [3] - Key stocks with significant capital flow include: - China National Materials Technology with a net inflow of 210 million yuan from main funds [3] - Luzhou Laojiao with a net inflow of 91.542 million yuan from main funds [3] - Tongling Nonferrous Metals with a net inflow of 60.685 million yuan from main funds [3]

Core Viewpoint - CITIC Special Steel's stock price has shown a year-to-date increase of 38.84%, indicating strong performance in the market despite a recent decline of 2.04% on November 25 [1][2]. Financial Performance - For the period from January to September 2025, CITIC Special Steel reported a revenue of 81.206 billion yuan, a year-on-year decrease of 2.75%, while the net profit attributable to shareholders was 4.33 billion yuan, reflecting a year-on-year growth of 12.88% [2]. - The company has distributed a total of 21.937 billion yuan in dividends since its A-share listing, with 9.952 billion yuan distributed over the past three years [3]. Stock Market Activity - As of November 25, the stock price was 14.86 yuan per share, with a market capitalization of 75.001 billion yuan. The trading volume was 29.3162 million yuan, with a turnover rate of 0.04% [1]. - The net inflow of main funds was 2.0994 million yuan, with large orders accounting for 8.62% of total purchases [1]. Shareholder Structure - As of September 30, 2025, CITIC Special Steel had 38,400 shareholders, a decrease of 11.57% from the previous period, with an average of 131,570 circulating shares per shareholder, an increase of 13.09% [2]. - The top ten circulating shareholders include Hong Kong Central Clearing Limited, which increased its holdings by 17.0402 million shares, and several ETFs that have reduced their holdings [3].

Market Performance - The special steel sector increased by 1.33% on November 24, with Shagang Co. leading the gains [1] - The Shanghai Composite Index closed at 3836.77, up 0.05%, while the Shenzhen Component Index closed at 12585.08, up 0.37% [1] Individual Stock Performance - Shagang Co. (002075) closed at 5.58, up 3.33% with a trading volume of 325,300 shares and a turnover of 180 million yuan [1] - CITIC Special Steel (000708) closed at 15.17, up 2.36% with a trading volume of 207,200 shares and a turnover of 309 million yuan [1] - Other notable performers include Shengde Zhengtai (300881) up 2.12%, Xining Special Steel (600117) up 1.74%, and Fushun Special Steel (600399) up 1.71% [1][2] Capital Flow Analysis - The special steel sector saw a net inflow of 31.21 million yuan from institutional investors, while retail investors experienced a net outflow of 1.48 million yuan [2][3] - Major stocks like CITIC Special Steel and Shagang Co. had significant net inflows from institutional investors, indicating strong interest [3] Summary of Trading Data - The trading data for the special steel sector shows varied performance, with some stocks experiencing gains while others faced declines [1][2] - The overall trading volume and turnover reflect active market participation, particularly in leading stocks like Shagang Co. and CITIC Special Steel [1][2]

Market Overview - The special steel sector experienced a decline of 0.37% on November 20, with Changbao Co. leading the drop [1] - The Shanghai Composite Index closed at 3931.05, down 0.4%, while the Shenzhen Component Index closed at 12980.82, down 0.76% [1] Stock Performance - Notable stock performances in the special steel sector include: - Shagang Co. closed at 5.61, up 0.36% with a trading volume of 219,500 shares and a turnover of 123 million yuan - Fushun Special Steel remained unchanged at 5.50 with a trading volume of 355,900 shares and a turnover of 195 million yuan - CITIC Special Steel closed at 15.03, unchanged with a trading volume of 159,900 shares and a turnover of 242 million yuan - Changbao Co. closed at 7.42, down 1.20% with a trading volume of 297,600 shares and a turnover of 22.3 million yuan [1][2] Capital Flow - The special steel sector saw a net outflow of 52.883 million yuan from institutional investors, while retail investors had a net inflow of 53.626 million yuan [2] - The capital flow for specific stocks indicates: - South Jin Co. had a net inflow of 2.2815 million yuan from institutional investors - CITIC Special Steel experienced a net outflow of 6.8486 million yuan from institutional investors [3]

Core Insights - The report highlights the development of listed companies in Hubei Province, indicating a total of 151 A-share companies by the end of 2024, ranking 10th nationally and 2nd in central China [1] - The total market capitalization of Hubei's A-share companies is 14,634 billion yuan, ranking 13th nationally, with an average market cap of 9.7 billion yuan, indicating a lack of large-scale leading enterprises [1][2] - The report identifies key sectors such as information technology, industrial, and healthcare, with a notable presence of optoelectronics and biomedicine [1][2] Group 1: Overview of Listed Companies - By the end of 2024, Hubei Province had 151 A-share listed companies, maintaining its 10th position nationally and 2nd in central China [1] - The province added 5 new A-share companies in 2024, all of which are private enterprises, reflecting the strength of Hubei's advantageous industries [1][2] - The distribution of listed companies shows a concentration in Wuhan, which accounts for over half of the total number and market value in the province [1][2] Group 2: Financial Performance - In 2024, the total assets of Hubei's listed companies reached 19,092 billion yuan, with net assets at 8,308 billion yuan, showing a slight decline year-on-year [2] - Total operating revenue was 9,554 billion yuan, relatively stable, while net profit dropped to 229 billion yuan, a significant decrease of 43.83% [2][3] - The net asset return rate was 2.73%, below the national average, indicating ongoing challenges in profitability [2][3] Group 3: Capital Operations - In 2024, Hubei's newly listed companies raised 3.39 billion yuan, with a refinancing scale of 5 billion yuan and merger and acquisition transactions amounting to 44.3 billion yuan [2] - The report notes an increase in market activity, with dividends and buybacks totaling 23 billion yuan [2] Group 4: Governance Structure - The governance structure of listed companies in Hubei is improving, with ongoing optimization of shareholder structures and board systems [2] - The quality of information disclosure is steadily increasing, contributing to a more stable regulatory environment [2] Group 5: Regional Economic Impact - The economic value added by listed companies in Hubei reached 1,929 billion yuan in 2024, with a labor productivity of 335,000 yuan per person [2] - R&D investment totaled 37.9 billion yuan, with a research intensity of 3.97%, surpassing the national average [2] Group 6: Challenges and Recommendations - Hubei's listed companies face challenges such as a high proportion of traditional industries, insufficient financing, and low innovation conversion rates [3] - The report suggests measures to encourage industrial transformation, cultivate capital market entities, and enhance innovation mechanisms to promote high-quality development [3]