CITIC Steel(SZ:000708) Zheng Quan Zhi Xing·2025-06-18 12:26Core Viewpoint - CITIC Pacific Special Steel Group Co., Ltd. has issued a total of 5 billion RMB in convertible bonds, with a six-year maturity and a structured interest rate that increases over time, aimed at funding various projects and enhancing its operational capabilities [2][3][14]. Section 1: Overview of Convertible Bonds - The approval for the issuance of 5 billion RMB in convertible bonds was granted by the China Securities Regulatory Commission on December 24, 2021 [2]. - The bonds were issued at a face value of 100 RMB each, with the issuance date on February 25, 2022 [3]. - The bonds have a maturity period from February 25, 2022, to February 24, 2028, with a structured interest rate starting at 0.20% in the first year and reaching 2.00% by the sixth year [3][4]. Section 2: Financial Performance - In 2024, the company reported a revenue of 109.20 billion RMB, a decrease of 4.22% from the previous year, and a net profit of 5.36 billion RMB, down 9.15% [14][15]. - The total assets as of December 31, 2024, were 111.04 billion RMB, reflecting a 4.69% decrease from the previous year, while total liabilities decreased by 10.23% to 67.22 billion RMB [15]. - The company's net assets increased by 5.27% to 43.83 billion RMB, indicating a strengthening of its equity position [15]. Section 3: Use of Proceeds - The proceeds from the bond issuance are allocated to several projects, including a 120 million RMB investment in optimizing the "Three Highs and One Special" product system and a 140 million RMB investment in environmental upgrades at Hubei Zhongte New Chemical Energy Technology Co., Ltd. [12][16]. - As of December 31, 2024, the company had utilized approximately 393.27 million RMB of the raised funds, with a remaining balance of 1.05 billion RMB [16][18]. Section 4: Company Overview - CITIC Pacific Special Steel is a leading manufacturer of specialized steel materials, with an annual production capacity of approximately 20 million tons [13][14]. - The company operates multiple production bases across China and has a strong market presence in high-end steel products, including bearing steel and automotive steel, with exports to over 80 countries [14].