Behind the daily limit increase of Ba Yi Steel's stock price, numerous risks await resolution. Investor compensation claims window has now opened.

Ask AI · Why did Bayi Iron & Steel’s stock hit the daily limit up against the trend under the threat of delisting?

On March 31, after being suspended for a day, Bayi Iron & Steel (600581) resumed trading, and its stock abbreviation was changed from “Bayi Iron & Steel” to “*ST Baygang,” while the stock code remained unchanged. On the day of resumption, the stock opened and quickly moved to a daily limit-up.

On the news front, on the evening of March 29, Bayi Iron & Steel disclosed its 2025 annual report. The announcement shows that during the reporting period, the company’s revenue rose slightly to RMB 18.75B, but net profit remained in a loss position. Specifically, net profit attributable to shareholders was a loss of RMB 1.88B, widening compared with the loss of RMB 1.76B in the same period last year; after excluding non-recurring gains and losses, net profit was a loss of RMB 1.93B, and the loss magnitude also increased versus the same period last year. As of now, Bayi Iron & Steel has recorded an annual loss for the fourth consecutive year.

The direct reason that triggered risk warning measures for the company’s stock comes from Bayi Iron & Steel’s announcement titled “Announcement on Implementation of Delisting Risk Warning for the Company’s Stock and Suspension.” The announcement states that, according to the “2025 Annual Audit Report” issued by Tianjian Certified Public Accountants, the company’s net assets at the end of 2025 were negative RMB 1.73B. This situation has already met the Shanghai Stock Exchange’s delisting risk warning conditions, so the company’s stock will be subject to a delisting risk warning. In addition, because the company has sustained losses for three consecutive years from 2023 to 2025, and the audit report indicates that there is uncertainty regarding the company’s going-concern ability, according to relevant regulations of the Shanghai Stock Exchange, the company’s stock will also have other risk warning measures implemented concurrently.

It is worth noting that, beyond the risks mentioned above, Bayi Iron & Steel has also engaged in illegal or non-compliant conduct in information disclosure. On January 30 of this year, the company, the controlling shareholder, and relevant parties each received an “Administrative Penalty Decision” issued by the Xinjiang Securities Regulatory Bureau. The issuance of the administrative penalties provides strong legal grounds for investor claims for compensation.

Given this, lawyer Peng Liu from Shanghai Huzu Law Firm said that, at present, investors who bought Bayi Iron & Steel shares during the period from April 18, 2023 to November 7, 2025 (including that day), and who still held the shares at the close on November 7, 2025, may be able to claim compensation from the company. Investors meeting the above conditions can register and enroll through the public account “大众证券报” (feature code: 11). The final eligibility and compensation conditions will be determined according to the court’s findings.