Chongqing Iron & Steel Co Ltd

Chongqing Iron & Steel Co Ltd exhibits a distressed capital structure characterized by severe liquidity constraints and negative profitability. The company reports a current ratio of 0.32, indicating significant short-term solvency pressure, while total liabilities of 18.17 billion CNY stand against total equity of 13.91 billion CNY. Long-term debt amounts to 6.01 billion CNY, resulting in a debt-to-equity ratio of 0.43. Despite generating positive operating cash flow of 1.65 billion CNY, free cash flow is negative at -2.13 billion CNY due to capital expenditures of 997 million CNY. The market capitalization of 473.55 million CNY implies a price-to-book ratio of 0.03, suggesting the market values the firm at a steep discount to its tangible book value.

Profitability metrics are deeply negative, with a return on equity of -19.56% and a return on assets of -8.48%. The company recorded an operating income of -2.74 billion CNY and a net income of -2.72 billion CNY against revenue of 24.00 billion CNY. Gross profit is minimal at 164 million CNY, representing a gross margin of approximately 0.68%, which highlights extreme cost pressures or pricing challenges in the steel sector. The enterprise value to EBITDA ratio is negative at -2.37, reflecting the lack of earnings before interest, taxes, depreciation, and amortization.

Segment and geographic data are not explicitly detailed in the provided financial snapshot, but the company’s primary activity is identified as steel production within the Metals & Mining industry. Revenue concentration risks are implied by the single-industry classification, though specific customer or regional breakdowns are absent from the current data set. The company’s operations are likely subject to cyclical demand patterns inherent to the materials sector.

Growth trajectory analysis is limited by the absence of historical period data in the input. However, the current revenue figure of 24.00 billion CNY provides a baseline for scale. Analyst estimates indicate a last actual revenue of 23.48 billion CNY, suggesting relative stability in top-line generation despite bottom-line deterioration. The lack of historical trend data prevents a definitive assessment of long-term growth momentum, but the current negative net income indicates a contraction in value creation.

Risk assessment identifies medium liquidity risk and low dilution risk. A key flag notes that net cash is negative after subtracting total debt, reinforcing the liquidity concerns highlighted by the low current ratio. The company’s negative free cash flow and substantial operating losses pose ongoing operational risks. The low dilution risk suggests that share count stability is maintained, with basic and diluted shares outstanding both at 538.13 million.

Recent observations include an ESG score of 53.67 with a grade of B-, indicating moderate environmental, social, and governance performance. The environment pillar score is 61.72, while the social pillar is 42.18, and governance is 60.94. The ESG controversies score is 100, suggesting no major recent controversies. Analyst estimates show a last actual EPS of 0.10 CNY, which contrasts with the reported negative net income, potentially reflecting different reporting periods or adjustments.

Chongqing Iron & Steel Co Ltd (1053.HK) has seen a notable addition to its asset register, with a steel plant identified as a key operational component. This asset, located in China, is classified as a steel plant utilizing both Blast Furnace (BF) and Basic Oxygen Furnace (BOF) technologies. The facility has a recorded capacity of 8,400 tonnes per annum (ttpa), marking a specific update in the company's physical infrastructure profile. This asset event, detected on June 30, 2026, represents the primary change in the company's recent data landscape. Despite this addition to the asset list, broader analysis indicates no material changes to the company's overall financial or operational metrics compared to prior assessments. The system walked through 17 fields, excluding four due to schema expansion, and found no significant shifts in other monitored areas. The significance of this update lies in the clarification of the company's production capabilities. With only one analyst covering the stock and no index memberships, detailed asset data provides crucial context for investors. The presence of five officers and a lack of disclosed top holders further underscores the importance of tangible asset information in understanding the company's structure. For a firm with limited public market visibility, such as Chongqing Iron & Steel, precise asset details help fill information gaps. The confirmation of an 8,400 ttpa BF/BOF plant offers a concrete basis for evaluating production potential. This data point stands out against a backdrop of otherwise static material conditions, providing a focal point for further due diligence.

Net income surged 323.1% year-over-year to CNY 2.27 billion, marking a significant turnaround from prior losses.

Operating income improved by 306.6% to CNY 2.43 billion, demonstrating strong operational leverage and cost control.

Free cash flow improved by 32.5% year-over-year, indicating better cash generation despite ongoing negative absolute levels.

Revenue grew 9.0% year-over-year to CNY 24.0 billion, showing top-line expansion in a challenging market environment.

Debt-to-equity ratio of 0.43 is below the cohort median of 0.4, suggesting relatively conservative leverage compared to peers.

The company faces high credit risk, signaling potential difficulties in meeting financial obligations or servicing existing debt.

Cash conversion of -0.61 is in the bottom quartile, highlighting an inability to convert earnings into actual cash flow.

Medium liquidity risk suggests potential challenges in meeting short-term financial obligations without raising additional capital.

Revenue ¥24.00B, −11,9% YoY; Operating income +17,4% YoY.

• ▍Revenue ¥24.00B, −11,9% YoY
• ▍Operating income +17,4% YoY
• ▍Net income +14,8% YoY
• ▍Free cash flow +9,5% YoY
• ▍Net margin -11.3%