BSP(SZ:000761)2022-11-17 15:01Group 1: Company Overview - The main business activities of Benxi Steel Plate Co., Ltd. include steel smelting, rolling processing, power generation, coal chemical, special steel profiles, railway, import and export trade, research, and product sales. The company has established over 60 varieties and 7,500 specifications of products, with over 80% being high value-added and high-tech content products [2][3]. Group 2: Production Capacity - The company has an annual production capacity of 15.95 million tons of pig iron, 6.17 million tons of cold-rolled materials, 12.8 million tons of crude steel, and 1.4 million tons of special steel [2][3]. Group 3: Revenue Distribution - The revenue distribution shows that the Northeast region (Liaoning, Jilin, Heilongjiang) accounts for approximately 40% of total revenue, while the East China region (Shandong, Shanghai, Zhejiang, Jiangsu, Anhui, Jiangxi, Fujian) also contributes around 40% [3]. Group 4: Industry Competition - There is a competitive overlap with Ansteel Co., Ltd. in products such as hot-rolled plates, cold-rolled plates, and galvanized plates, particularly in the Northeast and East China regions. The company is addressing this competition through asset restructuring, business adjustments, and entrusted management [3]. Group 5: Financial Impact of Convertible Bonds - The company has a convertible bond balance of 5.6 billion yuan. The interest payment for the second year is 8.00 yuan per 10 bonds (face value 1,000 yuan), which is similar to the previous year's interest, indicating no significant change in financial expenses [3]. Group 6: Market Demand and Supply - Recent high-frequency data indicates an improvement in overall steel demand. However, the first half of the year saw increased production but lower-than-expected demand due to real estate weakness and pandemic disruptions, leading to slow inventory depletion [3][4]. Group 7: Raw Material Prices - Coal prices remained high in the first half of the year, impacting overall profit levels. However, prices have started to decline since late June, and the company anticipates a continued downward trend in coal prices in the second half of the year [3][4]. Group 8: Industry Outlook - The steel industry is currently in a low point, with short-term improvements expected. However, challenges remain due to the pandemic and the Russia-Ukraine conflict, leading to global economic inflation and tightening monetary policy, which may affect the steel market outlook for the second half of the year and beyond [4].