Ba Yi Steel's losses will widen again in 2025. How can it escape the quagmire of losses?

Jingji Daily Reporter|Peng Fei Jingji Daily Editor|Yang Yi

On the evening of March 29, Anyi Steel (Rights Protection) (SH600581, share price 2.66 yuan, market cap 4.078 billion yuan) released its 2025 annual report. In 2025, the company achieved operating revenue of 18.748 billion yuan, while its net profit attributable to shareholders remained negative again, with its loss widening to 1.879 billion yuan. This indicates that the company has been mired in losses for four consecutive years.

Meanwhile, at the end of 2025, Anyi Steel’s audited net assets were -1.790 billion yuan, reaching the Shanghai Stock Exchange’s risk-warning situation for delisting. The company’s stock will be suspended for one day on March 30, 2026, and starting from March 31 it will be subject to delisting risk warning. The A-share stock abbreviation will be changed to “*ST Baigang”.

In addition, Anyi Steel was also fined by the Xinjiang CSRC for information disclosure violations.

Losses for four consecutive years

According to publicly available information, in 2025, China’s steel industry was in a long-cycle phase of reducing capacity and adjusting its structure. Full-year national crude steel output fell by 4.4% year over year, translating into a 7.1% year-over-year decline in apparent consumption of crude steel. Against this industry backdrop, as the steel enterprise with the largest production capacity scale and the most product varieties in Xinjiang, Anyi Steel’s operating situation is not optimistic.

Based on key financial data, in 2025, Anyi Steel’s operating revenue was 18.748 billion yuan, up slightly by 0.43% year over year. Its net profit attributable to shareholders was -1.879 billion yuan, compared with -1.761 billion yuan in 2024; the loss amount increased again. A reporter from The Economic Daily (M) learned that this is the company’s fourth consecutive year of losses since 2022.

The reporter learned that the widening of Anyi Steel’s losses mainly comes from two aspects. On the one hand, although its operating costs in 2025 were 18.557 billion yuan, down slightly by 2.42% year over year, they still absorbed most of the company’s profits, causing the gross margin of its steel main business to be only 2.43%.

In its 2025 annual report, Anyi Steel admitted that, in the downward phase of the steel industry’s capacity reduction and structural adjustment cycle, combined with multiple pressures such as the intensified imbalance between supply and demand, continuous pressure on steel prices, and rising production costs, the company’s profit space has been compressed, ultimately resulting in operating performance that failed to meet expected targets.

On the other hand, in 2025, Anyi Steel recognized asset impairment losses as high as 663 million yuan, while in the same period of 2024 they were only 154 million yuan. Anyi Steel stated in its 2025 annual report that the substantial increase in asset impairment losses was mainly due to the provision for impairment of fixed assets made during the reporting period.

The company’s stock will be “given a delisting-style cap”

At the same time, Anyi Steel will be subject to delisting risk warning.

The company’s 2025 annual report shows that, as of December 31, 2025, Anyi Steel’s total assets were 27.976 billion yuan, and total liabilities were as high as 29.705 billion yuan. The company’s net assets attributable to listed shareholders changed from a positive value at the end of 2024 to -1.790 billion yuan at the end of 2025. At the same time, as of the end of 2025, the company’s asset-liability ratio reached 106.18%.

Because the audited net assets at the end of the most recent accounting year are negative, Anyi Steel will be subject to the delisting risk warning situation stipulated in the Shanghai Stock Exchange’s Stock Listing Rules for implementing delisting risk warning on stock trading. After the disclosure of the 2025 annual report, the company’s stock abbreviation before the name will be preceded by “*ST”.

Not only that, Tianjian Certified Public Accountants issued an unqualified audit report with a section stating significant uncertainty related to continuing operations for Anyi Steel. It clearly indicated that the matters of negative net assets attributable to shareholders and four consecutive years of losses show the existence of significant uncertainties that may lead to major doubts about Anyi Steel’s ability to continue operating.

Meanwhile, Anyi Steel’s internal governance has also revealed loopholes.

In December 2025, due to failure to timely disclose related-party transaction matters involving non-operating fund transfers between it and its controlling shareholder and their related parties, resulting in major omissions in the company’s periodic reports for 2022, 2023, and 2024, the Xinjiang regulatory bureau of the CSRC issued a letter of pre-notification of administrative penalty to Anyi Steel.

In January 2026, the Xinjiang regulatory bureau of the CSRC officially issued an administrative penalty decision, ordering Anyi Steel to make corrections, issuing a warning, and imposing a fine of 3 million yuan. For the controlling shareholder, the Baigang Group (八钢公司), and several former and current chairmen and executives, warnings and fines ranging from several million yuan were imposed, respectively.

Facing the severe test of life and death, Anyi Steel’s path to self-rescue may rely on the “bottom-line support” of its major shareholder.

In its annual report, Anyi Steel mentioned that, in response to uncertainties regarding its ability to continue as a going concern, the company has drawn up related improvement plans. These include reducing costs and increasing efficiency, improving operating performance, disposing of inefficient and ineffective assets, and seeking from its shareholders—Xinjiang Anyi Steel Group Co., Ltd.—all necessary financial support in the foreseeable future, in order to improve the company’s ability to continue as a going concern.

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责任编辑：宋雅芳