Core Viewpoint - The credit rating of Benxi Steel Plate Co., Ltd. remains stable at AA+/Stable, with the "Benxi Convertible Bond" rated AAA, reflecting the company's market position, product structure, and financing capabilities despite challenges in the steel industry [1][2]. Company Overview - Benxi Steel Plate is a major steel producer in Liaoning Province, with a strong market position and a favorable product structure [6][10]. - The company has a significant production capacity, with annual capacities of 10.51 million tons for pig iron, 13.35 million tons for crude steel, and 24.28 million tons for steel products [8][10]. Financial Performance - The total assets of the company increased from 444.60 billion yuan in 2022 to 465.18 billion yuan in 2023, but decreased to 458.16 billion yuan in 2024 [1][2]. - The company reported a net loss of 16.48 billion yuan in 2023 and 49.60 billion yuan in 2024, indicating a significant decline in profitability [2][15]. - The debt level rose significantly, with total liabilities increasing from 250.86 billion yuan in 2022 to 333.17 billion yuan in 2024 [1][2]. Industry Context - The steel industry is facing downward pressure due to weak demand and falling steel prices, which have led to increased losses for companies like Benxi Steel Plate [4][5]. - The company is planning a major asset swap that may significantly change its business scope and operational focus, which requires close monitoring [7][6]. Operational Insights - The company has a strong supply chain for raw materials, primarily sourcing iron ore and coal from both domestic and international suppliers, ensuring stable production costs [11][12]. - The production facilities are advanced, with ongoing investments in energy efficiency and environmental upgrades, although these require significant capital expenditures [10][16]. Future Outlook - The credit rating agency expects the company's credit level to remain stable over the next 12 to 18 months, but highlights potential risks from market fluctuations and operational changes [1][3]. - The company is focusing on high-value products and expanding its market presence, including overseas markets, to mitigate domestic demand challenges [10][11].

Core Viewpoint - The credit rating of Lingyuan Steel Co., Ltd. is maintained at AA with a stable outlook, supported by the strong backing of its actual controller, Ansteel Group, and its competitive advantages in the regional construction materials market [1][3][6] Company Overview - Lingyuan Steel is the only state-owned listed steel enterprise in the western Liaoning region, benefiting from a differentiated competitive advantage in construction materials [1][3] - The company has a total asset value of 151.98 billion yuan as of March 2025, with total liabilities of 98.35 billion yuan, indicating a significant debt load [2][3] Financial Performance - The company has experienced continuous losses, with a net profit of -2.52 billion yuan in the first quarter of 2025, reflecting a worsening financial situation [2][3] - The operating revenue has declined from 215.58 billion yuan in 2022 to 38.81 billion yuan in the first quarter of 2025, indicating a downward trend in sales [2][3] - The EBITDA margin has also deteriorated, with a significant negative EBIT and EBITDA reported in recent years [2][3] Industry Context - The steel industry is facing downward pressure, with steel prices declining and raw material costs remaining high, leading to reduced profitability for companies [4][5] - Despite a potential increase in demand from infrastructure investments, the real estate sector remains weak, negatively impacting steel demand [5][6] Operational Challenges - Lingyuan Steel is undergoing significant capital expenditures for equipment upgrades and environmental compliance, which adds to its financial strain [1][3][6] - The company is also facing challenges related to product structure transformation and the need for technological upgrades to remain competitive [6][7] Market Position - The company maintains a strong market presence in Northeast and North China, with a sales volume heavily reliant on construction materials [10][11] - Lingyuan Steel's product offerings include a range of steel types, with a focus on high-quality rebar and other construction materials [10][11] Future Outlook - The credit rating agency anticipates that Lingyuan Steel's credit level will remain stable over the next 12 to 18 months, contingent on improvements in operational performance and market conditions [1][3] - Potential factors for rating upgrades include significant increases in production capacity and sustained improvements in revenue and profit levels [1][3]