ZHESHANG SECURITIES·2025-06-11 09:25Group 1: EU Regulatory Impact on Chinese Companies - The EU's ESG regulations are creating significant pressure on Chinese companies looking to enter the European market, with 56 A-share companies estimated to be affected by the new CSRD regulations[1] - A-share companies' overseas revenue as a percentage of total revenue increased to 13.10% in 2024, indicating a rising trend in international exposure[1] - Among the 56 companies potentially impacted, 24 are clearly identified as at risk, while a conservative estimate suggests 32 additional companies may also be affected[1] Group 2: ESG Risk Assessment - The overall ESG risk for companies entering Europe is manageable, but those with significant exposure to the EU may face stricter disclosure requirements[1] - Of the 56 companies, all have ESG ratings above CCC, with 3 rated BB and 2 rated B, indicating a generally acceptable risk profile[1] - Specific sectors, such as furniture and electronics, with high export shares to Europe, need to prepare for stricter ESG disclosure requirements[1] Group 3: Market Dynamics and Trade Statistics - In 2024, China's exports to the EU reached 36,724.06 billion yuan, accounting for 14.43% of total exports, while imports from the EU were 19,168.64 billion yuan, making the EU China's second-largest trading partner[1] - The average European revenue share for the 24 clearly identified companies is approximately 35%, which is significantly higher than the conservative estimate of 10% used for companies lacking detailed disclosures[1] - The report highlights that 37 of the 56 companies are included in the CSI 300 index, indicating their prominence in the market[1]