Benxi Steel's four-year loss approaches 12 billion yuan; can they break through after a leadership change?

Reprinted from China Business Network

Zhongjing Reporter Chen Jiayun, Beijing report

On the evening of April 3, Benxi Steel Plate (000761.SZ) released its 2025 annual report. The financial report shows that the company’s net profit attributable to shareholders for the full year was a loss of 3.942 billion yuan. On the same day, Benxi Steel Plate also issued an announcement disclosing that its Chairman and General Manager Huang Asu resigned from all positions due to work adjustments.

A person from Benxi Steel Plate, in an interview with a reporter from China Business News, said that the company’s loss in performance was the result of multiple factors working together. On the one hand, in recent years the overall market outlook of China’s steel industry has been relatively low, which is a common external environment problem faced by companies in the industry; on the other hand, affected by regional factors, the company is located in Northeast China, where the transportation costs of raw materials and products are higher than those of steel companies in other regions, further increasing the company’s operating burden.

As for the specific reasons for Huang Asu’s resignation, a person from Benxi Steel Plate clearly stated that this is a normal personnel change within the company and has no connection with the company’s performance.

Continuous losses

Benxi Steel Plate’s main businesses include steel smelting, rolling processing, power generation, coal chemical industry, and special steel bar products, among others. According to the financial report, in recent years Benxi Steel Plate’s performance has been under continuous pressure.

In 2025, Benxi Steel Plate achieved operating revenue of 46.392 billion yuan, down 9.51% year on year; net profit attributable to shareholders was -3.942 billion yuan, and net profit after deducting non-recurring gains and losses was -4.027 billion yuan. Although the loss improved compared with the loss of 5.037 billion yuan in 2024, the loss scale still remains close to 4 billion yuan.

Previously, Benxi Steel Plate had continued to incur losses. From 2022 to 2024, its net profit attributable to shareholders was -1.233 billion yuan, -1.721 billion yuan, and -5.037 billion yuan, respectively. Combined with the loss in 2025, the total cumulative loss over the four years was about 12 billion yuan.

Regarding the reasons for the losses, Benxi Steel Plate stated in its financial report that in 2025 the overall steel market showed a pattern of weak supply and demand at the same time, with price fluctuations. Although the industry situation improved to some extent, the overall price spread between procurement and sales narrowed, but there was no significant turnaround. The company’s full-year operating performance therefore failed to achieve profitability.

An insider in the steel industry analyzed to reporters that Benxi Steel Plate’s performance reflects the current reality of a deep adjustment in China’s steel industry. Weak downstream demand, steel prices running at low levels, and rigid cost pressures still remain; the slow process of recovery at the bottom of the industry is still restricting steel companies’ profit restoration.

Financial data shows that as of the end of 2025, Benxi Steel Plate’s asset-liability ratio was 81.20%, up 8.48 percentage points from 72.72% at the end of 2024. Benxi Steel Plate’s finance costs in 2025 were 428 million yuan, up 78.09% from 240 million yuan in 2024. In addition, net cash flow from operating activities was -1.789 billion yuan, compared with 1.1 billion yuan in 2024, representing a decline of 262.58%, reflecting a downturn in the company’s core business “cash-generating ability.”

Information previously disclosed by China Chengxin International indicated that due to the sluggish external operating environment of the steel industry, Benxi Steel Plate’s total operating revenue has decreased year by year since 2022, operating-profit business has continued to post losses, and its financial leverage has continued to rise. However, the company has continued to receive strong indirect support in areas such as production and operations and financing from its indirect controlling shareholder Benxi Group Co., Ltd. and its ultimate controlling shareholder Angang Group Co., Ltd., and its financing channels are smooth; therefore, the losses have not yet had a significant negative impact on its creditworthiness.

Personnel adjustments

On the day Benxi Steel Plate disclosed its 2025 financial report, it also announced major personnel adjustments—the company’s board received Huang Asu’s written resignation letter. Due to work adjustments, Huang Asu applied to resign from the positions of director, chairman, general manager, and related roles in all special committees of the board. After his resignation, he will no longer hold any position in the company. Meanwhile, independent director Yuan Zhizhu also resigned after serving six consecutive years.

Huang Asu has served as chairman of Benxi Steel Plate since August 2024, with a term of less than two years. During his tenure, the company’s losses continued to expand; the amount of loss in 2024 increased by nearly two times year on year. Although the loss narrowed somewhat in 2025, it still has not escaped the predicament of losses. According to the disclosure from Benxi Steel Plate, Huang Asu’s remuneration in 2025 was 526,000 yuan, and he holds no shares in the company.

Previously, in August 2024, Benxi Steel Plate’s then-chairman Li Yan left due to work adjustments, and Huang Asu took over to assume the role.

After Huang Asu’s resignation, Benxi Steel Plate has appointed Yan Dongyu as the newly appointed general manager. The announcement shows that Yan Dongyu was born in 1974. He currently serves as the general manager and deputy secretary of the party committee of Benxi Steel Plate, and also serves as a director of Ouye Yunshang and the Angang Group Beijing Research Institute. He previously served as deputy general manager, general manager, and deputy secretary of the party committee of Angang Co., Ltd.’s marketing center, chairman of Angang Cold Rolled Steel Plate (Putian) Co., Ltd., and deputy general manager, member of the party committee’s standing committee, and deputy general manager of Benxi Group.

(Editor: Dong Shuguang; Review: Wu Kezhong; Proofreading: Zhai Jun)

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