LING STEEL(SH:600231) Xin Lang Cai Jing·2025-10-28 09:56Core Viewpoint - Lingyuan Steel Co., Ltd. reported a net loss of 266 million yuan in Q3 2025, although this represents an improvement compared to a net loss of 841 million yuan in the same period last year, indicating a narrowing of losses due to increased revenue and reduced costs in the steel industry [1][3]. Financial Performance - In Q3 2025, the company achieved an operating revenue of 4.38 billion yuan, an increase of 18.7% year-on-year [1][2]. - For the first three quarters of 2025, the total operating revenue was 11.76 billion yuan, a decrease of 15.31% compared to the same period in 2024 [2]. - The net loss for the first three quarters of 2025 was 844 million yuan, which is an improvement from a net loss of 1.36 billion yuan in the same period of 2024 [1][2]. Industry Context - The steel industry has shown signs of recovery, with a reported total profit of 59.2 billion yuan for key steel enterprises in the first half of 2025, reflecting a year-on-year increase of 63.26% [1][3]. - The improvement in Lingyuan Steel's performance is attributed to a significant reduction in steel material costs, which outpaced the decline in prices [3]. Debt and Capital Expenditure - As of September 30, 2025, the company had total assets of 15.12 billion yuan and total liabilities of 10.36 billion yuan, indicating a slight decrease in total assets from the end of 2024 [3]. - The company is under pressure from ongoing capital expenditures, with significant investments in ongoing projects, including a total planned investment of 2.126 billion yuan for equipment upgrades [3][4]. - Lingyuan Steel has one outstanding bond, "Ling Steel Convertible Bond," with a balance of 217 million yuan, rated AA and maturing in April 2026 [4].