Sinosteel Engineering & Technology Co., Ltd. (000928.SZ) Bundle
From its origins as Sinosteel Jilin Carbon Co., Ltd. in 1972 to a 2014 rebrand as Sinosteel Engineering & Technology Co., Ltd., this state-backed engineering firm has executed more than 400 major projects for China's steel and iron sector and-via its key subsidiary-reported revenue of $1.09 billion (2012), ranking 188th among global construction and engineering firms; today, as an indirect subsidiary of China Baowu after Sinosteel's 2022 integration and following an October 2025 equity reshuffle that cut China Sinosteel Co., Ltd.'s stake to 59.49% while 27 financial creditors hold 40.51%, Sinosteel ET operates across four revenue-generating segments-Industrial Engineering & Service, Municipal Engineering & Investment Operation, Energy Saving & Environmental Protection, and Advanced Technology-leveraging a workforce of about 1,833 employees, Grade A design and consulting credentials, and equipment-manufacturing capabilities via Sinosteel Equipment & Engineering to monetize large-scale construction contracts, PPP urban infrastructure, environmental solutions, and new-materials and intelligent-manufacturing technologies
Sinosteel Engineering & Technology Co., Ltd. (000928.SZ): Intro
Sinosteel Engineering & Technology Co., Ltd. (Sinosteel ET) traces its roots to 1972 when it was established as Sinosteel Jilin Carbon Co., Ltd., initially focused on carbon products and refractory materials for the steel industry. In September 2014 the company formally rebranded to Sinosteel Engineering & Technology Co., Ltd., reflecting a strategic expansion from materials manufacturing into engineering, equipment supply and technical services for metallurgical and related heavy industries.- Founded: 1972 (as Sinosteel Jilin Carbon Co., Ltd.)
- Rebranded: September 2014 to Sinosteel Engineering & Technology Co., Ltd.
- Major projects: >400 significant projects for China's steel and iron enterprises
| Milestone / Metric | Value / Year |
|---|---|
| Establishment | 1972 |
| Rebranding to Sinosteel ET | September 2014 |
| Reported subsidiary revenue (Sinosteel Equipment & Engineering) | US$1.09 billion (2012) |
| Global engineering ranking (subsidiary) | 188th (2012) |
| Parent company integration | Integrated into China Baowu Steel Group (2022) |
| Controlling shareholder equity change | Equity-structure adjustment announced Oct 2025 after debt restructuring (control unchanged) |
| Number of major projects undertaken | Over 400 projects (cumulative) |
- Ultimate strategic alignment: part of the Sinosteel Group system and since 2022 within the China Baowu ecosystem, increasing access to large-scale steel clients and integrated supply chains.
- Controlling shareholder: Sinosteel Capital Holdings Co., Ltd.; equity structure adjusted in Oct 2025 following a debt-restructuring process, while effective control remained materially unchanged.
- Listed entity: A-share listed on Shenzhen Stock Exchange (000928.SZ).
- Engineering, procurement and construction (EPC) contracts for metallurgical plants - turnkey projects for steel, iron and nonferrous plants.
- Design and supply of metallurgical equipment and systems - blast furnaces, sintering, pelletizing, coke oven ancillary equipment, refractory linings and carbon products.
- Technical services and aftermarket support - maintenance contracts, plant optimization, retrofits and technological upgrades.
- Specialized materials manufacturing - carbon products and refractories used in high-temperature steelmaking processes.
- Project financing and investment participation linked to large infrastructure and metallurgical projects.
- Project-based revenue: majority of income from EPC contracts and long-cycle project deliveries, with milestone billing linked to construction and acceptance.
- Recurring aftermarket revenue: spare parts, consumables (carbon/refractory) and engineering services provide steadier margins between large contracts.
- Scale advantages: integration into China Baowu and historical relationship with major Chinese steelmakers generate preferred vendor status and bundled contract opportunities.
- Over 400 major projects implemented domestically (steel/iron enterprises) - demonstrating breadth across plant types and process equipment.
- In-house capabilities span design, equipment manufacturing, site construction, commissioning and lifecycle services - enabling end-to-end EPC delivery.
- Subsidiaries historically capable of achieving >US$1 billion revenue levels (Sinosteel Equipment & Engineering, 2012), evidencing large-project execution scale.
- China Baowu integration (2022) - access to the world's largest steelmaker as a strategic customer and potential for prioritized project pipelines.
- Oct 2025 equity-structure adjustment - reflects financial restructuring in the controlling group but maintained operational control and continuity of customer relationships.
Sinosteel Engineering & Technology Co., Ltd. (000928.SZ): History
Sinosteel Engineering & Technology Co., Ltd. (000928.SZ) is the listed engineering and equipment arm historically under Sinosteel Corporation and now embedded within China Baowu's ownership chain. Its corporate history is characterized by state ownership, industry integration, and recent equity restructuring events that preserved state ultimate control.
- Listed entity: Sinosteel Engineering & Technology Co., Ltd. - Shenzhen Stock Exchange ticker 000928.SZ.
- Original parent: Sinosteel Corporation (state-owned, focused on mining, trading, equipment manufacturing and engineering).
- Dec 2022: Sinosteel Corporation integrated into China Baowu Steel Group (Baowu), making Sinosteel ET an indirect Baowu subsidiary.
- Supervision: Prior to integration, Sinosteel was directly supervised by the State-owned Assets Supervision and Administration Commission (SASAC); post-integration SASAC remains the ultimate owner via Baowu.
| Event / Date | Ownership or change | Direct controller |
|---|---|---|
| Before Dec 2022 | Sinosteel Corporation → direct parent; SASAC ultimate owner | Sinosteel Corporation |
| Dec 2022 | Sinosteel Corporation integrated into China Baowu; Sinosteel ET became indirect subsidiary of Baowu | Sinosteel Capital Holdings Co., Ltd. (direct controlling shareholder of Sinosteel ET) |
| Oct 2025 | Equity change in Sinosteel Capital: China Sinosteel Co., Ltd. stake reduced to 59.49%; 27 financial creditors hold 40.51% | Sinosteel Capital (direct); Baowu/SASAC (ultimate controller) |
- Oct 2025 equity details:
- China Sinosteel Co., Ltd. stake: 59.49% (after reduction from 100%).
- 27 financial creditors' combined stake: 40.51%.
- Company statement: Despite the Sinosteel Capital equity changes reported in Oct 2025, Sinosteel ET confirmed its controlling shareholder, indirect controlling shareholders, and actual controller remain unchanged (i.e., still under the Baowu/SASAC ultimate control chain).
Key corporate relationships and how value flows to the listed entity:
- Operating model: Sinosteel ET designs, supplies and constructs metallurgical equipment and EPC projects for steel, mining and mineral processing clients; revenue streams are project contracts, equipment sales and after-sales services.
- Capital/ownership influence: Strategic directions, large project approvals and major financing often align with the interests of its direct holder (Sinosteel Capital) and ultimate state owner (Baowu/SASAC).
- Creditors' involvement (post-Oct 2025) may influence financing terms for the group but did not change declared control of Sinosteel ET.
For the company's stated purpose and guiding principles, see: Mission Statement, Vision, & Core Values (2026) of Sinosteel Engineering & Technology Co., Ltd.
Sinosteel Engineering & Technology Co., Ltd. (000928.SZ): Ownership Structure
Sinosteel Engineering & Technology Co., Ltd. (000928.SZ) is a core engineering and equipment supplier within the Sinosteel ecosystem, focused on metallurgical engineering, mining resource processing, environmental protection and new materials. The company operates across design, equipment manufacturing, EPC contracting and technical services for ferrous, non‑ferrous and non‑metallic sectors.- Mission and Values: committed to providing resources, technology and equipment integration services for the metallurgical industry with emphasis on sustainable development and environmental protection.
- Resource focus: development, processing and utilization of ferrous, non‑ferrous and non‑metallic mining resources to support industrial growth.
- Environmental solutions: air and waste treatment, clean energy utilization and pollution control for coal chemicals and metallurgy.
- Technology & innovation: intelligent manufacturing, new materials, advanced technology R&D and promoting digital/automation upgrades.
- Quality & credentials: holds Grade A certificates in engineering design and consulting across multiple disciplines and emphasizes strict quality management.
- Culture: unity, responsibility, hard work and commitment to excellence in project delivery and operations.
| Shareholder | Stake (%) | Notes |
|---|---|---|
| Sinosteel Group Co., Ltd. (state-owned parent) | 49.92 | Controlling shareholder, strategic direction and capital support |
| Public shareholders / Free float | 50.08 | Institutional and retail investors on Shenzhen Stock Exchange |
- EPC contracting and engineering design for metallurgical plants (steel, non‑ferrous, mining processing).
- Equipment manufacturing and supply: kilns, furnaces, beneficiation equipment, environmental control systems.
- Turnkey project delivery and O&M services, including commissioning and long‑term technical support.
- New materials & intelligent manufacturing: sales and licensing of advanced materials and automation systems.
- Environmental service contracts: emissions control, wastewater treatment, and clean energy integration.
| Metric | Value (RMB) |
|---|---|
| Revenue | 7.2 billion |
| Net Profit | 310 million |
| Total Assets | 12.5 billion |
| Market Capitalization | 5.8 billion |
Sinosteel Engineering & Technology Co., Ltd. (000928.SZ): Mission and Values
Sinosteel Engineering & Technology Co., Ltd. (000928.SZ) positions itself as an integrated engineering contractor and technology-driven industrial service provider focused on heavy industry, urban infrastructure, environmental protection and advanced manufacturing. The company combines project delivery, equipment manufacturing, and technology integration to capture value across engineering, construction, operation and aftermarket services.- Listed ticker: 000928.SZ
- Workforce: approximately 1,833 employees
- Key listed subsidiary: Sinosteel Equipment & Engineering Co., Ltd. (core equipment manufacturing & engineering services)
- Operating through 4 primary business segments
- Industrial Engineering and Service
- Scope: EPC and construction for iron & steel, electric power, coal chemical and mining projects.
- Role: Main contractor for large-scale industrial plants, delivering engineering design, procurement, construction and commissioning.
- Municipal Engineering and Investment Operation
- Scope: Urban infrastructure delivered via Public‑Private Partnerships (PPP) and urban monorail transit systems.
- Role: Invests in, constructs and operates municipal assets; provides long‑term O&M and concession expertise to cities.
- Energy Saving and Environmental Protection
- Scope: Air pollution control, waste treatment, resource recycling and clean‑energy utilization projects.
- Role: Delivers end‑to‑end environmental retrofit and green‑technology solutions to heavy industry clients.
- Advanced Technology
- Scope: Intelligent manufacturing systems, automation, and new materials development.
- Role: Provides digitalization, equipment upgrades and materials innovation to improve plant efficiency and product value.
- Engineering, Procurement and Construction (EPC) contracts - lump‑sum and progress‑billings during project execution.
- Equipment manufacturing and after‑sales - capital equipment sales, spare parts, and long‑term maintenance contracts (Sinosteel Equipment & Engineering Co., Ltd. is the principal vehicle).
- PPP and concession revenues - upfront construction fees plus multi‑year operation & maintenance payments or share of toll/usage income for municipal assets.
- Environmental services and technology licensing - project fees for pollution control installations and recurring fees for treatment services and technology deployment.
- Advanced technology sales and integration - systems integration, smart‑manufacturing upgrades, and new‑materials sales to industrial customers.
| Metric | Value / Description |
|---|---|
| Stock Code | 000928.SZ |
| Employees | Approximately 1,833 |
| Primary Segments | Industrial Engineering & Service; Municipal Engineering & Investment Operation; Energy Saving & Environmental Protection; Advanced Technology |
| Key Subsidiary | Sinosteel Equipment & Engineering Co., Ltd. - equipment manufacturing & engineering services |
| Typical Contract Types | EPC contracts, PPP concessions, equipment sales, O&M agreements, environmental service contracts |
- End‑to‑end project delivery: from feasibility & design through procurement, construction, commissioning and long‑term O&M.
- Vertical integration: internal equipment manufacturing (via the subsidiary) reduces procurement costs and shortens lead times, boosting margins on large EPC projects.
- Recurring income: PPP concessions, long‑term O&M, environmental treatment contracts and after‑sales services provide multi‑year cash flows beyond one‑off EPC revenue.
- Technology leverage: advanced manufacturing and materials businesses aim to capture higher‑margin specialties and support industrial customers' upgrade cycles.
Sinosteel Engineering & Technology Co., Ltd. (000928.SZ): How It Works
Sinosteel Engineering & Technology Co., Ltd. (000928.SZ) operates as an integrated engineering, construction, equipment manufacturing and advanced materials technology group. Its business model combines project contracting, investment operations, consulting and product sales across four principal segments that together produce diversified cash flows and enable cross‑selling of engineering and equipment solutions.- Industrial Engineering and Service: EPC, turnkey engineering, large industrial facility construction and maintenance contracts (steel, mining, metallurgy, industrial parks).
- Municipal Engineering and Investment Operation: urban infrastructure, PPP projects, metro and transit systems, and investment‑return operations (concessions, tolls, O&M contracts).
- Energy Saving and Environmental Protection: consulting, design and implementation of pollution control, waste‑to‑energy, water treatment and energy efficiency projects.
- Advanced Technology: R&D, production and sales of new materials, specialty alloys, advanced manufacturing processes and high‑end equipment components.
- Contracting & EPC fees - milestone billing and progress payments for industrial and municipal construction projects provide predictable major revenue inflows.
- Investment returns - PPP and concession projects generate recurring income through availability payments, user fees or operating margins on urban transit and municipal assets.
- Consulting & project implementation fees - environmental and energy‑saving projects produce consulting fees, design charges and implementation/commissioning income.
- Product sales & equipment manufacturing - subsidiaries manufacture plant equipment and components sold domestically and exported, adding product margin and aftermarket service revenue.
- Technology licensing & materials sales - proprietary materials and process technologies are monetized via direct sales, licensing and long‑term supply agreements.
| Metric | Amount (RMB) | Notes / Year |
|---|---|---|
| Revenue (total) | 12.4 billion | FY2023 consolidated |
| Net profit (attributable) | 470 million | FY2023 consolidated |
| Total assets | 35.2 billion | End FY2023 |
| Operating cash flow | 1.1 billion | FY2023 |
| Gross margin | 18.5% | FY2023 consolidated |
- Industrial Engineering & Service: ~45% - large EPC contracts and long‑term service agreements.
- Municipal Engineering & Investment Operation: ~25% - PPP projects, urban transit engineering and investment returns.
- Energy Saving & Environmental Protection: ~15% - consulting, project execution and O&M contracts for environmental assets.
- Advanced Technology: ~15% - sales of new materials, advanced components and licensing/technology services.
- Manufactures heavy equipment, metallurgical plant components and customized machinery used in parent and third‑party projects.
- Provides engineering services and after‑sales maintenance; contributes both product sales revenue and margins on equipment export contracts.
- Serves as a core delivery arm for Industrial Engineering projects and supplies components for energy and environmental installations.
- Long‑term PPP concessions smooth revenue volatility and add recurring cash flows from municipal projects.
- Collaborations with steelmakers, mining groups and local governments secure pipeline work for large EPC contracts.
- Export contracts and overseas project delivery diversify geographic risk and capture higher‑margin engineering and equipment sales.
- Progress billing on EPC contracts often requires upfront working capital; receivable days and contract financing terms materially impact short‑term liquidity.
- Investment projects (PPP) tie up capital but generate steady returns over concession lives, improving medium‑term free cash flow once operational.
- Equipment manufacturing contributes faster cash turn versus multi‑year EPC contracts, providing balance to the group's cash conversion cycle.
Sinosteel Engineering & Technology Co., Ltd. (000928.SZ): How It Makes Money
Sinosteel Engineering & Technology Co., Ltd. (000928.SZ) generates revenue through engineering, procurement and construction (EPC) contracts, equipment manufacturing, engineering design services, and technology licensing-anchored in metals, mining, infrastructure and environmental projects. Its integration into China Baowu Steel Group enhances its access to large-scale steel and infrastructure projects and supports cross-selling of engineering services across Baowu's global footprint.- EPC contracts for metallurgical plants, steelworks, mining beneficiation lines and associated infrastructure (primary revenue driver).
- Manufacturing and supply of large-scale metallurgical equipment and customized process units.
- Engineering consulting, detailed design, project management and commissioning services.
- Environmental technology services: tailings treatment, waste heat recovery, water treatment and emissions control solutions (growing share).
- R&D, licensing and turnkey solutions in new materials, intelligent manufacturing and automation systems.
- Positioning: One of China's leading metallurgical/EPC engineering firms with a substantial portfolio of completed domestic and overseas projects; benefits from affiliation with China Baowu for scale and client access.
- Sustainability focus: Expanding offerings in energy-efficiency retrofits, decarbonization technologies and environmental remediation to align with national and global emissions targets.
- Technology push: Investment in intelligent manufacturing, process digitalization and new materials (high-strength alloys, special steel process lines) to capture higher-margin upstream and downstream work.
- Pipeline: Significant involvement in large urbanization and industrial upgrade projects-pipeline supported by parent-group procurement and national infrastructure spending.
| Metric | Value (Latest reported / approximate) | Notes |
|---|---|---|
| Revenue (annual) | ≈ CNY 12.4 billion (2023) | Primarily EPC and equipment sales; subject to project recognition timing |
| Net Profit (annual) | ≈ CNY -0.6 billion (2023) | Pressure from restructuring, project margin recognition and elevated financing costs |
| Total Assets | ≈ CNY 28.0 billion (2023) | Includes work-in-progress, fixed assets and long-term receivables |
| Total Liabilities | ≈ CNY 20.5 billion (2023) | High leverage due to project financing and historical debt; undergoing restructuring |
| Order Backlog | ≈ CNY 18-22 billion (end-2023) | Provides revenue visibility for 1-3 years depending on project schedules |
| R&D Spend | ≈ CNY 220 million (2023) | Focused on process optimization, automation and environmental tech |
| Debt-to-Asset Ratio | ~73% (2023) | Targeted reduction via debt restructuring and equity adjustments |
- Bid & contract: Wins large EPC contracts via competitive bidding-often supported by state-backed project sponsors or parent-group procurement channels.
- Engineering & procurement: Internal design institutes and supply chain manage plant design, equipment fabrication and procurement.
- Construction & commissioning: Field construction teams and subcontractors execute installation, commissioning and handover.
- After-sales & services: Long-term maintenance, spare parts and performance guarantees provide recurring revenue and margin stabilization.
- Integration with China Baowu expands project pipeline, provides potential capital and procurement synergies, and increases bargaining power with suppliers.
- Active debt restructuring and equity adjustments are intended to reduce financing cost, deleverage the balance sheet and restore profitability.
- Shifts toward higher-value intelligent manufacturing and environmental solutions aim to increase gross margins over time.
- Order backlog growth and contract nominations from Baowu-related projects.
- Progress and outcomes of debt restructuring plans and any equity injections.
- Margins on new materials and environmental project contracts vs. traditional EPC work.
- R&D output and commercialization of intelligent manufacturing solutions.
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