Zhong Guo Jing Ji Wang·2025-12-22 02:49Core Viewpoint - Chongqing Steel (601005.SH) plans to issue A-shares to a specific entity, Huabao Investment, which is fully controlled by China Baowu, indicating a strategic move to strengthen financial stability and maintain control [1][2]. Group 1: Share Issuance Details - The share issuance will involve 757,575,757 A-shares at a price of RMB 1.32 per share, which is 90% of the average trading price over the last 20 trading days prior to the announcement [1]. - The total amount to be raised from this issuance is expected to be no more than RMB 100,000 million, which will be used to supplement working capital and repay bank loans [1]. Group 2: Ownership Structure - As of the announcement date, China Baowu and its concerted parties hold a total of 29.51% of Chongqing Steel's shares, which is expected to increase to 35.07% post-issuance, ensuring that China Baowu remains the actual controller of the company [2]. Group 3: Financial Performance - For the third quarter of 2025, Chongqing Steel reported revenue of RMB 6.006 billion, a year-on-year increase of 8.96%, while the net profit attributable to shareholders was a loss of RMB 86.58 million [2][3]. - Year-to-date revenue reached RMB 19.091 billion, reflecting a decrease of 7.32% compared to the previous year, with a net loss of RMB 2.17 billion [2][3]. - The net cash flow from operating activities for the year-to-date period was RMB 1.833 billion, showing a significant increase of 68.11% year-on-year [3].