Xinyu Steel announced on July 15 its reply to the Shanghai Stock Exchange's regulatory inquiry on its 2025 annual report, addressing issues such as perennial large-scale financial investments, concurrent deposits and loans, and significant fluctuations in investment income. The company disclosed that its debt investments from 2023 to 2025 were 13.338 billion yuan, 14.267 billion yuan, and 10.414 billion yuan, respectively, which, together with short-term large-denomination certificates of deposit, constitute other liquid financial assets. All are principal-guaranteed deposits at state-owned, joint-stock, and city commercial banks, with no high-risk wealth management products, in compliance with amortized cost measurement standards. Regarding the sharp decline in investment income in 2025, the company explained it was caused by the continued decline in market deposit rates, the concentrated maturity of existing high-interest certificates of deposit, and the contraction of investment scale. In response to the question of holding large deposit-type financial investments while maintaining interest-bearing liabilities, the company stated that the yield on financial investments consistently exceeded financing costs, which could offset interest expenses, that maturity mismatches between long- and short-term funds ensured liquidity, while maintaining stable bank credit channels, and that it had proactively reduced both liabilities and wealth management scale.
Xinyu Iron & Steel Co LtdCompany responds to SSE inquiry on financial investments and deposit-loan coexistence; no clear positive or negative outcome.