Losses widen again, and *ST Ba Yi Steel will be suspended today!

Bayi Steel (600581) will be subject to delisting risk warning.

On the evening of March 29, Bayi Steel announced that, after auditing, the company’s net assets at the end of 2025 were -1.729 billion yuan. This triggers the provisions of Article 9.3.2, Paragraph 1, Item (2) of the Shanghai Stock Exchange Listing Rules, stating that after the disclosure of the 2025 annual report, the company’s stock will be subject to delisting risk warning.

According to relevant regulations, Bayi Steel’s stock will be suspended for one day on March 30 and will be subject to delisting risk warning starting March 31. The abbreviated name of A-shares will change to “*ST Bayi Steel.” After the implementation of the delisting risk warning, the daily price fluctuation limit for the company’s stock will be 5%, and the stock will be traded on the risk warning board.

Bayi Steel announced that Tianjian Accounting Firm conducted an audit of the company’s financial statements for 2025 and the effectiveness of internal controls, issuing an unqualified audit report with a significant uncertainty paragraph regarding going concern and an unqualified internal control audit report with an emphasis of matter paragraph. As of December 31, 2025, the equity attributable to the parent company was -1.790 billion yuan, with a net loss of 1.879 billion yuan for 2025 and four consecutive years of losses, indicating significant uncertainty regarding the company’s ability to continue as a going concern. Additionally, the company had internal control deficiencies in disclosing related party transaction information in previous years, which have been rectified in 2025. The company will take measures to strengthen the management of related party transactions, organize training on regulations, and deepen intelligent transformation to eliminate the impact.

Data shows that Bayi Steel is the only publicly listed steel company in Xinjiang, focusing on the entire industrial chain of steel smelting, rolling, processing, and sales. In its performance forecast, Bayi Steel previously explained that the market conditions in its region feature “three highs and three lows,” and the low production efficiency in winter exacerbated operational pressure. Coupled with external factors such as regional supply and demand imbalance, homogeneous competition, and ineffective production capacity, the company reported a loss for 2025.

Bayi Steel also pointed out in its annual report that in 2025, the company will face profound changes in the industry and new operational challenges, insisting on focusing on its main responsibilities and core business, enhancing its core functions and competitiveness, and deepening professional integration.

Regarding the future, Bayi Steel stated that its core goal is to “survive and improve,” establishing a four-pronged response system of “cost reduction, quality improvement, market expansion, and transformation,” balancing short-term loss reduction with long-term planning.

Bayi Steel also mentioned in the annual report that the company’s steel business will continue to focus on high-quality development, enhancing competitiveness through cost-effective operations, high-end structural adjustments, coal-steel synergy, and leveraging the advantages of Xinjiang to expand into Central Asia. The coal business will increase resource control, enhancing the ratio of self-supply and imports to ensure supply. The deep processing business will promote the intensification of production lines and the transformation of products towards high-margin directions such as leaf springs and wind power anchor bolts.

(Source: Securities Times)