Core Viewpoint - The credit rating agency maintains the credit rating of Ningbo Bohui Chemical Technology Co., Ltd. at "A" due to significant losses in 2024 and the first quarter of 2025, alongside declining profitability and debt repayment indicators, while the company is actively pursuing business transformation and restructuring [3][5][6]. Financial Performance - The company reported a total asset value of 20.61 billion in 2024, down from 21.35 billion in 2023 and 21.11 billion in 2022 [4]. - The net profit for 2024 was -3.10 million, a significant decline from 1.52 million in 2023 [4]. - The operating cash flow turned negative at -1.12 million in 2024, compared to 4.29 million in 2023 [4]. - The debt-to-equity ratio reached 79.41% by the end of March 2025, indicating high leverage [6][7]. Business Transformation - The company is focusing on transforming its product structure and business model, having obtained fuel oil processing trade qualifications by the end of 2024 [5][6]. - The introduction of local state-owned investors is expected to provide financial support and positively impact business operations and financing [5][6]. Industry Context - The fuel oil deep processing industry is characterized by specialized divisions and geographical constraints, primarily located in coastal regions such as North China and the Yangtze River Delta [12][13]. - The industry faces challenges related to production technology and the need for high-quality raw materials, which are critical for meeting the stringent quality requirements of downstream customers [12][13]. Production and Capacity - The company has two main production facilities with a design capacity of 40 million tons each for aromatic extraction and environmental aromatic oil production [19][20]. - The production capacity utilization rate for the aromatic extraction facility was 69.15% in 2023, while the environmental aromatic oil facility was at 74.26% [21]. Future Outlook - The company plans to invest 0.50 billion in a project to adapt raw materials for the environmental aromatic oil facility, which is expected to commence in the second half of 2025 [21][22]. - The company is exploring a fuel oil processing trade model, which is anticipated to significantly influence its future profitability [22].