（股份編號：0347） 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內 容 概 不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示 概 不 就因本公告全部或任何部份內容而產生或因倚賴該等內容而引致的任 何 損 失 承 擔 任 何 責 任。 持續關連交易 重續持續關連交易 重續持續關連交易 於二零二四年十月 二十三 日，本 公 司 訂 立 以 下 協 議，以 重 續 相 應 先 前 協 議 項 下 擬 進 行 的 交 易： (i) 與鞍鋼集團公司訂立 商品互供 框 架 協 議（2025–2027年 度）； (ii) 與 鞍 鋼 集 團 公 司 訂 立 服 務 互 供 框 架 協 議（2025–2027年 度）； (iii) 與 鞍 鋼 集 團 財 務 公 司 訂 立 金 融 服 務 協 議（2025–2027年 度）；及 (iv) 與 鞍 鋼 資 本 訂 立 產 業 金 融 服 務 框 架 協 議（2025–2027年 度）。 根據鞍鋼資本子公司擬向本集團獨立第三方供應商提供的商業保理 服 務，在 鞍 鋼 資 本 子 公 司 承 擔 本 集 團 原 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內 容 概 不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不對因本公告全部或任何部分內容而產生或因倚賴該等內容而引致的 任 何 損 失 承 擔 任 何 責 任。 （股份編號：0347） 海外監管公告 本公告乃根據香港聯合交易所有限公司證券上市規則第13.10B條 作 出。 茲 載 列 鞍 鋼 股 份 有 限 公 司（「本公司」）於 二 零 二 四 年 十月二十五日 在《中 國 證 券 報》、《證 券 時 報》、《上 海 證 券 報》或 巨 潮 資 訊 網(http://www.cninfo.com.cn) 刊 登 的 以 下 公 告 全 文，僅 供 參 考。 承董事會命 鞍鋼股份有限公司 王 軍 執行董事兼董事長 中國遼寧省鞍山市 二零二四年十月二十四日 於 本 公 告 日 期，本 公 司 董 事 會 成 員 如 下： | 執 | 行 | 董 | 事： | 非 獨 | 立 | 執 | 行 | 董 | 事： | | --- | --- | --- | --- | --- | --- | --- | ...

Financial Performance - The company's operating revenue for the first half of 2024 was RMB 55,449 million, a decrease of 7.69% compared to RMB 60,067 million in the same period last year[25]. - The net profit attributable to shareholders of the listed company was RMB -2,689 million, representing a 100.07% decline from RMB -1,344 million in the previous year[25]. - The net cash flow from operating activities was RMB 572 million, down 77.26% from RMB 2,515 million in the same period last year[25]. - The basic and diluted earnings per share were both RMB -0.287, a decrease of 100.70% compared to RMB -0.143 in the previous year[25]. - The total profit for the period was RMB -2,623 million, representing a decline of 48.95% year-on-year[48]. - Cash flow from operating activities showed a net inflow of RMB 572 million, a decrease of 77.26% compared to the previous year[54]. - The company reported a net increase in cash and cash equivalents of RMB -264 million, an improvement of 79.25% year-on-year[57]. - The company reported a total revenue of 4,115 million with a net profit of -204 million, indicating a challenging financial performance[88]. Assets and Liabilities - The total assets at the end of the reporting period were RMB 96,702 million, a decrease of 0.82% from RMB 97,506 million at the end of the previous year[26]. - The equity attributable to shareholders of the listed company was RMB 52,041 million, down 4.97% from RMB 54,761 million at the end of the previous year[26]. - As of June 30, 2024, the company's long-term borrowings amounted to RMB 5,657 million, with an average interest rate of 2.56%[63]. - The company's total capital commitments were RMB 3,440 million, primarily for investment contracts and construction contracts[63]. - The company's total assets to liabilities ratio was 1.21 as of June 30, 2024, down from 1.33 at the end of 2023[73]. - Total liabilities increased to 43,658 million RMB from 41,901 million RMB[198]. Production and Sales - In the first half of 2024, the company produced 12.13 million tons of iron, 12.86 million tons of steel, and 12.10 million tons of steel products, representing decreases of 8.23%, 6.99%, and 4.15% year-on-year respectively[35]. - The company sold 12.01 million tons of steel, a decrease of 6.07% compared to the same period last year, achieving a steel sales rate of 99.28%[35]. - Revenue from steel rolling processing accounted for 99.82% of total operating revenue, totaling RMB 55,351 million, down 7.71% from the previous year[59]. - Domestic revenue was RMB 51,767 million, representing 93.36% of total revenue, a decrease of 8.07% year-on-year[59]. Research and Development - The company increased its research and development investment, completing key technology tasks, with three projects selected for the State-owned Assets Supervision and Administration Commission's recommended list[39]. - The company’s research and development expenses were RMB 191 million, down 22.04% compared to the previous year[50]. - The company has filed 507 national patent applications, with 318 being invention patents, indicating strong innovation capabilities[47]. Environmental and Sustainability Initiatives - The company is committed to achieving ultra-low emissions and enhancing green development capabilities[92]. - Ansteel's carbon dioxide emissions per ten thousand yuan of output value reached 5.49 tons, with a target of reducing carbon emissions by over 30% for automotive steel products[124]. - The company traded 2.32 billion kWh of clean energy in the first half of 2024, with green electricity accounting for 783 million kWh, an increase of 337 million kWh year-on-year, resulting in a reduction of electricity costs by CNY 11.76 million[124]. - The waste gas comprehensive utilization high-efficiency power generation units with a total capacity of 405 MW are expected to be completed and put into operation in 2024, projected to generate an additional 480 million kWh of electricity and reduce carbon emissions by 200,000 tons[124]. Corporate Governance and Management - The company maintains compliance with corporate governance standards and has established effective internal control systems[100]. - The participation rate for the 2023 Annual General Meeting was 56.57%[102]. - The company appointed new executives, including Mr. Deng Qiang as an executive director and Mr. He Tianqing as a deputy general manager[105]. - The company has established a long-term incentive mechanism through a restricted stock incentive plan for directors and senior management to attract and retain talent[115]. Market and Industry Trends - The steel industry is facing a "three highs and three lows" situation, characterized by high production, high costs, high inventory, low demand, low prices, and low efficiency[89]. - Global iron ore production is expected to increase by 4.8% to 2.385 billion tons in 2024, while domestic iron ore production is projected to see slight growth[91]. - The company anticipates a decline in steel demand in 2024, particularly in construction steel, while demand for automotive and household appliance steel is expected to grow[91]. Related Party Transactions - The company has disclosed related party transactions in accordance with the listing rules, with a total procurement amount of 12,637 million RMB, accounting for 35.93%[142]. - The company reported a total of 5,363 million RMB in sales of products related to related party transactions, accounting for 7.33%[144].

Financial Performance - The company's operating revenue for the first half of 2024 was CNY 55,449 million, a decrease of 7.69% compared to CNY 60,067 million in the same period last year[13]. - The net profit attributable to shareholders of the listed company was CNY -2,689 million, representing a 100.07% decline from CNY -1,344 million in the previous year[13]. - The net cash flow from operating activities was CNY 572 million, down 77.26% from CNY 2,515 million in the same period last year[13]. - The basic earnings per share were CNY -0.287, a decrease of 100.70% compared to CNY -0.143 in the previous year[13]. - The total profit for the company was RMB -2,623 million, representing a decline of 48.95% year-on-year[24]. - The company reported a total comprehensive loss for the first half of 2024 was RMB 2,657 million, compared to a loss of RMB 1,288 million in the same period of 2023[109]. - The net loss for the first half of 2024 was RMB 2,673 million, compared to a net loss of RMB 1,328 million in the same period of 2023, indicating a significant increase in losses[109]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 96,702 million, a decrease of 0.82% from CNY 97,506 million at the end of the previous year[13]. - The total liabilities increased to RMB 43,658 million as of June 30, 2024, up from RMB 41,901 million at the end of 2023, representing a growth of 4%[108]. - The total equity attributable to shareholders decreased to RMB 52,041 million from RMB 54,761 million, a decline of 5%[108]. - The current ratio decreased by 6.49% to 0.72, while the asset-liability ratio increased by 2.18 percentage points to 45.15%[104]. - The total non-current liabilities increased to RMB 7,199 million as of June 30, 2024, compared to RMB 6,470 million at the end of 2023, marking an increase of 11%[108]. Cash Flow - Cash and cash equivalents decreased to 3,055 million RMB from 3,319 million RMB[106]. - The net cash flow from operating activities for the first half of 2024 was RMB 572 million, a decrease of 77.3% compared to RMB 2,515 million in the same period last year[110]. - Cash inflow from financing activities totaled RMB 5,077 million, a decrease of 5.7% compared to RMB 5,385 million in the same period last year[110]. - The net cash flow from financing activities was RMB 376 million, a significant recovery from a net outflow of RMB 2,406 million in the previous year[110]. Production and Sales - In the first half of 2024, the company's iron, steel, and material production reached 12.13 million tons, 12.86 million tons, and 12.10 million tons, respectively, representing decreases of 8.23%, 6.99%, and 4.15% year-on-year[18]. - The company sold 12.01 million tons of steel, a decrease of 6.07% compared to the same period last year, achieving a steel sales rate of 99.28%[18]. - The average domestic steel price index for the first half of 2024 was 108.19 points, reflecting a year-on-year decline of 4.89%[16]. - The company exported 53.4 million tons of steel in the first half of 2024, marking a year-on-year increase of 24.0%[17]. Research and Development - The company has increased its R&D investment, with three projects included in the State-owned Assets Supervision and Administration Commission's recommended list for technological innovation achievements[18]. - Research and development expenses for the first half of 2024 were RMB 191 million, down from RMB 245 million, showing a reduction of 22%[109]. Environmental and Social Responsibility - The company’s green low-carbon development initiatives led to it being recognized as the first A-level steel enterprise for full-process environmental performance in Northeast China[19]. - The company allocated a total of RMB 8.6016 million for social responsibility initiatives in the first half of the year, including RMB 8.3016 million for targeted poverty alleviation projects in Taxkorgan and RMB 0.3 million for a project in Chaoyang, totaling 8 projects[66]. - The company has implemented 108 environmental protection renovation projects with a planned investment of 1.06 billion yuan[64]. Corporate Governance - The company has no significant litigation or arbitration matters during the reporting period, indicating a stable legal environment[70]. - There were no violations regarding external guarantees, reflecting sound financial practices[69]. - The company has committed to avoiding competition with its controlling shareholder, ensuring compliance with competitive regulations[67]. Accounting and Financial Reporting - The financial report for the first half of 2024 has not been audited[2]. - The company adheres to the Chinese Accounting Standards, ensuring that the financial statements reflect a true and complete view of its financial position as of June 30, 2024[125]. - The company did not make any changes to accounting policies or estimates during the reporting period[188]. Employee and Training - As of June 30, 2024, the total number of employees is 25,823, with 18,659 in production roles[56][57]. - In the first half of 2024, the company completed 15,085 person-times of grassroots knowledge and skills training, achieving a training plan completion rate of 97.9%[59].

Financial Performance - The company's operating revenue for the first half of 2024 was RMB 55,449 million, a decrease of 7.69% compared to the adjusted RMB 60,067 million in the same period last year[2]. - The net profit attributable to shareholders was RMB -2,689 million, representing a 100.07% decline from the adjusted net profit of RMB -1,344 million in the previous year[6]. - Basic earnings per share were RMB -0.287, a decrease of 100.70% compared to RMB -0.143 in the same period last year[6]. - Total profit amounted to RMB -2,623 million, representing a decline of 48.95% year-on-year[17]. - The company achieved a net loss of 19 million RMB from non-recurring gains and losses, after accounting for tax effects[8]. - The total comprehensive loss for the period was RMB 2,657 million, compared to a loss of RMB 1,288 million in the previous period[68]. - The company reported an operating loss of RMB 2,549 million, worsening from a loss of RMB 1,746 million in the prior period[67]. - The net profit for the period was a loss of RMB 2,673 million, compared to a loss of RMB 1,328 million in the previous period, reflecting a significant increase in losses[67]. Cash Flow and Assets - The net cash flow from operating activities was RMB 572 million, down 77.26% from RMB 2,515 million in the previous year[6]. - Cash and cash equivalents decreased by RMB 264 million, but the net increase was 79.25% compared to the previous year[20]. - As of June 30, 2024, the company's total current assets amounted to RMB 26,400 million, a decrease from RMB 27,421 million as of December 31, 2023[63]. - The company's total liabilities as of June 30, 2024, were RMB 43,658 million, compared to RMB 41,901 million as of December 31, 2023[64]. - The total equity attributable to shareholders of the parent company decreased from RMB 54,761 million as of December 31, 2023, to RMB 52,041 million as of June 30, 2024[65]. - The company's cash and cash equivalents stood at RMB 3,055 million as of June 30, 2024, down from RMB 3,319 million at the end of 2023[63]. - The accounts receivable increased to RMB 2,352 million as of June 30, 2024, from RMB 1,790 million as of December 31, 2023[63]. - The company's inventory decreased to RMB 14,491 million as of June 30, 2024, from RMB 16,611 million as of December 31, 2023[63]. Operational Efficiency - The company has improved management efficiency by simplifying 73 approval processes through digital transformation[11]. - The comprehensive energy consumption per ton of steel decreased by 1.3% year-on-year, while green electricity trading volume increased by 75.6%[13]. - The logistics cost per ton of material decreased by 6% compared to 2023, effectively lowering overall logistics costs[13]. - The company implemented cost reduction measures in procurement, leading to a decrease in iron production costs[17]. - The gross profit margin for the steel processing industry decreased by 1.98 percentage points to -1.98% compared to the previous year[22]. Strategic Initiatives - The company is focusing on the integration of its subsidiary, Green Gold Company, which has completed capital contributions from its shareholders during the reporting period[7]. - The company has signed various agreements related to material and service supply for the years 2022-2024, indicating ongoing strategic partnerships[4]. - The company has initiated 3 projects that were included in the State-owned Assets Supervision and Administration Commission's recommended list for technological innovation achievements[10]. - The company has established 21 strategic cooperation satellite bases for the waste steel industry platform construction[11]. - The company plans to focus on cost reduction, efficiency improvement, and risk management in the second half of the year[32]. Related Party Transactions - The company engaged in significant related party transactions with Ansteel Group, which included the supply of raw materials and auxiliary materials, as well as the sale of products and services[52]. - The total amount of daily related party transactions is expected to be within the limits set by the annual budget and agreements[52]. - The company reported a maximum deposit amount of RMB 164.321 million with Ansteel Finance Company during the reporting period[56]. - The company had a loan limit of RMB 200 million with Ansteel Finance Company, with no loans drawn during the reporting period[56]. - The company's related party transactions are conducted under market principles, ensuring compliance with regulatory standards[51]. Future Outlook - Future outlook includes plans for market expansion and the introduction of new products, aiming for a revenue growth of 20% in the next fiscal year[48]. - The company plans to enhance its supply chain efficiency, aiming for a reduction in procurement costs by 10%[48]. - The company plans to enhance its market expansion strategies and invest in new product development to improve future performance[69].

Financial Performance - The company expects a net loss of approximately RMB 2,679 million for the first half of 2024, a decrease of about 99.33% compared to the same period last year[2] - The net profit attributable to shareholders after deducting non-recurring gains and losses is projected to be a loss of approximately RMB 2,690 million, down about 98.52% year-on-year[2] - Basic earnings per share are estimated to be a loss of approximately RMB 0.285 per share, compared to a loss of RMB 0.143 per share in the same period last year[2] Market Conditions - The steel industry continues to face a weak market, with overall losses and sluggish downstream demand impacting profitability[3] Cost Management - The company is implementing cost-reduction strategies in procurement and enhancing sales efficiency to mitigate losses[3] Accounting and Reporting - The company has adjusted its subsidiary's capital contribution method, leading to a change in the accounting treatment of its waste steel resources subsidiary[2] - The company has not undergone a pre-audit by the accounting firm for this earnings forecast[3] - The financial data provided is preliminary and subject to change upon the release of the official half-year report[3] - The company will continue to disclose information in accordance with legal regulations to inform investors of potential risks[3]

Financial Performance - The company's operating revenue for Q1 2024 was RMB 27,343 million, a decrease of 11.35% compared to RMB 30,844 million in the same period last year[3]. - The net profit attributable to shareholders of the listed company was a loss of RMB 1,657 million, compared to a loss of RMB 149 million in the previous year, representing a decrease of 1,012.08%[3]. - Basic earnings per share were RMB -0.177, compared to RMB -0.016 in the previous year, reflecting a decrease of 1,006.25%[3]. - Net profit for Q1 2024 was a loss of RMB 1,650 million, compared to a loss of RMB 145 million in Q1 2023, indicating a significant decline in profitability[18]. - Net profit for Q1 2024 was a loss of RMB 1,519 million, compared to a loss of RMB 305 million in Q1 2023, indicating a significant decline in profitability[24]. Cash Flow and Liquidity - The net cash flow from operating activities was RMB 751 million, down 70.62% from RMB 2,556 million in the same period last year[3]. - The net cash inflow from operating activities decreased by RMB 1,805 million, primarily due to a reduction in cash received from sales of goods and services[7]. - The net increase in cash and cash equivalents decreased by RMB 1,539 million compared to the same period last year, influenced by reduced cash inflows from operating activities[8]. - Cash flow from operating activities generated RMB 751 million in Q1 2024, a decrease of 70.7% from RMB 2,556 million in Q1 2023[19]. - The company reported a decrease in cash and cash equivalents to RMB 1,372 million at the end of Q1 2024, down from RMB 4,308 million at the end of Q1 2023[25]. Assets and Liabilities - The total assets at the end of the reporting period were RMB 98,241 million, an increase of 1.26% from RMB 97,014 million at the end of the previous year[3]. - The company's total liabilities increased to RMB 44,497 million as of March 31, 2024, compared to RMB 41,623 million at the end of 2023, representing a rise of 6.73%[16]. - Total liabilities increased to RMB 42,625 million as of March 31, 2024, up from RMB 39,528 million at the end of 2023, representing an increase of 5.3%[23]. - The company's total assets increased to RMB 93,365 million as of March 31, 2024, compared to RMB 91,858 million at the end of 2023, an increase of 1.6%[23]. Shareholder Information - The company reported a total of 105,940 shareholders, with the largest shareholder, Anshan Iron and Steel Group, holding 53.45% of the shares[10]. - The company has a total of 5,016,111,529 shares held by its largest shareholder, Anshan Iron and Steel Group[10]. Research and Development - Research and development expenses decreased by RMB 54 million compared to the same period last year, primarily due to reduced costs for new product trials[6]. - Research and development expenses for Q1 2024 were RMB 66 million, significantly lower than RMB 112 million in Q1 2023, a reduction of 41.1%[24]. Other Income and Expenses - Other income increased by RMB 5 million year-on-year, mainly due to an increase in government subsidies received[6]. - The company’s financial expenses decreased to RMB 56 million in Q1 2024 from RMB 72 million in Q1 2023, a reduction of 22.2%[18]. - The company’s financial expenses for Q1 2024 were RMB 68 million, down from RMB 92 million in Q1 2023, a decrease of 26.1%[24]. Inventory and Receivables - Accounts receivable increased significantly to RMB 2,479 million, up from RMB 1,693 million, marking a growth of 46.36%[15]. - Inventory levels decreased to RMB 15,467 million from RMB 16,565 million, a reduction of 6.61%[15]. - Inventory levels decreased to RMB 11,988 million in Q1 2024 from RMB 13,210 million in Q4 2023, a reduction of 9.2%[21].

Financial Performance - The company's operating revenue for the first quarter of 2024 was RMB 27,343 million, a decrease of 11.35% compared to RMB 30,844 million in the same period last year[2]. - The net profit attributable to shareholders of the listed company was a loss of RMB 1,657 million, representing a significant decline of 1,012.08% from a loss of RMB 149 million in the previous year[2]. - The basic earnings per share were RMB -0.177, a decrease of 1,006.25% compared to RMB -0.016 in the previous year[2]. - Net loss for Q1 2024 was RMB 1,650 million, compared to a net loss of RMB 145 million in Q1 2023, indicating a significant decline in profitability[17]. - Net loss attributable to the parent company for Q1 2024 was RMB 1,519 million, compared to a net loss of RMB 305 million in Q1 2023[27]. Cash Flow - The net cash flow from operating activities was RMB 751 million, down 70.62% from RMB 2,556 million in the same period last year[2]. - The net cash inflow from operating activities decreased by RMB 1,805 million compared to the same period last year, primarily due to a decrease in cash received from sales of goods and services by RMB 5,628 million[7]. - Operating cash flow for Q1 2024 was RMB 751 million, a decrease of 70.7% from RMB 2,556 million in Q1 2023[20]. - Total cash inflow from financing activities in Q1 2024 was RMB 1,170 million, down 66.8% from RMB 3,530 million in Q1 2023[30]. - Cash received from operating activities in Q1 2024 was RMB 22,567 million, down 18.2% from RMB 27,593 million in Q1 2023[29]. Assets and Liabilities - Total assets at the end of the reporting period were RMB 98,241 million, an increase of 1.26% from RMB 97,014 million at the end of the previous year[2]. - Current assets totaled RMB 28,087 million as of March 31, 2024, an increase of 3.6% from RMB 27,119 million on December 31, 2023[13]. - Total liabilities increased to RMB 44,497 million as of March 31, 2024, up from RMB 41,623 million on December 31, 2023, representing a rise of 6.7%[14]. - Total equity attributable to shareholders decreased to RMB 53,049 million from RMB 54,704 million, a decline of 3.0%[15]. - The company’s total equity decreased to RMB 50,740 million as of March 31, 2024, down from RMB 52,330 million at the end of 2023[25]. Research and Development - The company's R&D expenses decreased by RMB 54 million compared to the same period last year, primarily due to reduced trial production costs[5]. - The company incurred research and development expenses of RMB 80 million in Q1 2024, down from RMB 134 million in Q1 2023, a reduction of 40.3%[16]. - The company reported a decrease in R&D expenses to RMB 66 million in Q1 2024 from RMB 112 million in Q1 2023, a reduction of 41.1%[26]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 105,940, with 455 H-share shareholders[8]. - The largest shareholder, Anshan Iron and Steel Group Co., Ltd., holds 53.45% of the shares, amounting to 5,016,111,529 shares[9]. - Hong Kong Central Clearing Limited holds 14.91% of the shares, amounting to 1,398,802,324 shares[9]. - China National Petroleum Corporation holds 9.00% of the shares, amounting to 845,000,000 shares[9]. - The top ten shareholders include several state-owned enterprises, indicating a significant concentration of ownership[10]. Market Conditions - The company experienced a decrease in operating profit, total profit, and net profit due to the downward trend in the steel market, which affected steel prices[6].

Share Capital and Structure - The company reported a net asset value of RMB 2,028,817,600 at its establishment in 1997, with 1,319,000,000 domestic shares issued at a par value of RMB 1 each[5]. - In 2023, the total number of shares decreased to 9,383,851,972 after the cancellation of 19,168,479 restricted A-shares and 408,623 remaining treasury shares[8]. - The company issued 890,000,000 H-shares at HKD 1.63 per share in 1997, which were listed on the Hong Kong Stock Exchange[5]. - The company completed a capital reserve conversion in June 2019, increasing its share capital by 2,170,442,354 shares, resulting in a total of 9,405,250,201 shares[8]. - The company’s A-shares were publicly issued at RMB 3.90 per share in November 1997, with 285,505,400 shares listed on the Shenzhen Stock Exchange[5]. - The company’s total share count after the 2005 equity division reform was 5,932,985,697 shares[6]. - The company’s stock is traded on both the Shenzhen Stock Exchange (A-shares) and the Hong Kong Stock Exchange (H-shares) under the ticker codes 000898 and 00347, respectively[9]. - The company reported a total of 9,384 million shares outstanding as of the end of 2023[13]. Financial Performance - The company's operating revenue for 2023 was RMB 113,502 million, a decrease of 13.40% compared to RMB 131,072 million in 2022[12]. - The net profit attributable to shareholders for 2023 was RMB -3,257 million, a significant decline from RMB 156 million in 2022, representing a decrease of 3,115.74%[12]. - The total assets at the end of 2023 were RMB 97,014 million, showing a slight increase of 0.02% from RMB 96,935 million at the end of 2022[13]. - The total liabilities increased by 8.60% to RMB 41,623 million in 2023, up from RMB 38,138 million in 2022[13]. - The company's cash flow from operating activities for 2023 was RMB 1,579 million, a decrease of 74.28% compared to RMB 6,139 million in 2022[12]. - The basic earnings per share for 2023 was RMB -0.347, a drastic drop from RMB 0.017 in 2022, reflecting a decline of 3,254.55%[12]. - The weighted average return on equity for 2023 was -5.78%, a decrease of 5.96 percentage points from 0.26% in 2022[12]. - The net profit attributable to shareholders for the fourth quarter of 2023 was RMB -1,142 million, with a total operating revenue of RMB 29,214 million[17]. - Non-recurring gains and losses totaled RMB 58 million in 2023, down from RMB 145 million in 2022[18]. - For the fiscal year ending December 31, 2023, the company reported a net profit attributable to shareholders of RMB -3,257 million, with a basic earnings per share of RMB -0.347, compared to an adjusted net profit of RMB 108 million and adjusted earnings per share of RMB 0.011 for the previous year[21][22]. - The company plans not to distribute cash dividends or issue bonus shares for the fiscal year 2023 due to the reported loss[22]. Market and Production - In 2023, the apparent consumption of crude steel in China was 933 million tons, a year-on-year decrease of 3.4%, while domestic crude steel production remained stable at 1.019 billion tons[23]. - The company achieved steel production of 26.63 million tons and sales of 24.85 million tons in 2023, with a sales rate of 101.03%[26]. - The company introduced 52 new product varieties in 2023, exceeding the planned target by 4.05 percentage points, and the sales volume of automotive steel increased by 12.2% year-on-year[27]. - The company reported a 33.85% year-on-year increase in export order volume, marking a significant breakthrough in specialty steel exports[27]. - The average value of the China Steel Price Index (CSPI) decreased by 9.1% year-on-year, reflecting a challenging pricing environment in the steel industry[23]. - The company has optimized its production organization and resource allocation, resulting in a 20% year-on-year increase in the production of high magnetic permeability silicon steel[26]. Cost Management and Efficiency - The procurement costs were effectively controlled through expanded procurement channels and optimized strategies, contributing to overall cost reduction[27]. - The company achieved a gross profit margin for the steel rolling processing industry of -0.50%, a decrease of 2.83 percentage points year-on-year[38]. - Operating costs decreased by 10.92% to RMB 114,037 million from RMB 128,022 million in the previous year[71]. - Management expenses rose by 30.12% to RMB 1,689 million, primarily due to organizational restructuring and increased personnel costs[71]. - Financial expenses decreased by 47.02% to RMB 258 million, down from RMB 487 million in the previous year, attributed to lower average financing costs[73]. Research and Development - The company has invested 106 million yuan in 21 energy-saving projects in 2023[30]. - R&D investment amounted to RMB 2,852 million in 2023, an increase of 8.81% from RMB 2,621 million in 2022[105]. - R&D investment accounted for 2.51% of operating revenue in 2023, up from 2.0% in 2022, representing an increase of 0.51 percentage points[105]. - The number of R&D personnel increased by 4.26% from 2,185 in 2022 to 2,278 in 2023, with a higher proportion of personnel holding bachelor's and master's degrees[104]. - The company is focused on developing advanced production technologies for cold-rolled high-strength steel and high-grade surface cold-rolled steel[103]. Environmental and Sustainability Initiatives - The company is focusing on digital transformation and green initiatives, enhancing its innovation capabilities and environmental performance[25]. - The company completed 152 ultra-low emission transformation projects, with emissions of sulfur dioxide, nitrogen oxides, COD, and ammonia nitrogen decreasing by 28.2%, 21.9%, 2.2%, and 60% respectively compared to planned levels[30]. - The company aims to achieve a 30% reduction in carbon emissions by developing green low-carbon automotive steel products for demonstration applications[100]. - The company has completed the production process for green low-carbon automotive steel, increasing the scrap steel ratio to reduce carbon emissions[101]. Risk Management and Compliance - The company has established a comprehensive risk management framework to improve financial efficiency and compliance[34]. - The company has undergone structural changes, including the establishment of new subsidiaries and the cancellation of others, with no significant impact on overall operations[40]. - The company has established a comprehensive management framework for foreign exchange derivatives, ensuring compliance with relevant laws and internal controls to mitigate operational risks[134]. - The company has conducted legal risk assessments related to its derivative investments, ensuring compliance with national futures trading laws[126]. Corporate Governance - The company has established a comprehensive corporate governance system in compliance with relevant laws and regulations, ensuring independence from its controlling shareholder[146]. - The company held its first extraordinary shareholders' meeting in 2023 with a participation rate of 57.95%, where key resolutions included the election of new directors[150]. - The company reported a significant change in its board of directors, with Wang Yidong resigning as chairman and executive director on September 22, 2023, due to work changes[159]. - The company has a total of 8 board members, with various roles including legal compliance and engineering management[172]. Employee and Management Changes - The total number of employees at the end of the reporting period was 26,964, including 23,246 at the parent company and 3,718 at major subsidiaries[199]. - The company experienced changes in its management team, with Zhang Peng resigning as vice general manager on August 28, 2023, due to work changes[159]. - The total pre-tax compensation for the current directors and senior management amounts to RMB 309.65 million, with the highest being RMB 114.41 million for the General Manager[177]. Future Outlook - In 2024, the global economy is expected to remain in a slow recovery phase, with the steel industry facing a new adjustment cycle, leading to overall weak demand and high supply levels[145]. - The company anticipates a slight decline in overall steel demand, with the situation of oversupply unlikely to fundamentally improve[145]. - The company plans to innovate marketing models and implement cost reduction strategies to improve efficiency[145].

Financial Performance - In 2023, the company's operating revenue was RMB 113,502 million, a decrease of 13.40% compared to RMB 131,072 million in 2022[23]. - The net profit attributable to shareholders was RMB -3,257 million in 2023, a significant decline from RMB 156 million in 2022, representing a decrease of 3,115.74%[23]. - The company's cash flow from operating activities was RMB 1,579 million, down 74.28% from RMB 6,139 million in 2022[23]. - Total assets at the end of 2023 were RMB 97,014 million, a slight increase of 0.02% from RMB 96,935 million at the end of 2022[23]. - The total liabilities increased by 8.60% to RMB 41,623 million at the end of 2023, compared to RMB 38,138 million at the end of 2022[23]. - The company's equity attributable to shareholders decreased by 5.69% to RMB 54,704 million at the end of 2023, down from RMB 58,140 million at the end of 2022[23]. - The total profit for the period was RMB -4,142 million, a significant decline of 1,439.78% from RMB -269 million in the previous year[52][53]. - The domestic market revenue decreased by 14.94% to RMB 106,342 million, while export revenue increased by 18.17% to RMB 7,160 million[54][55]. Operational Highlights - The company produced 25.46 million tons of iron, 26.63 million tons of steel, and 24.60 million tons of steel products, with year-on-year changes of -2.97%, +0.15%, and -1.93% respectively[34]. - The company achieved a steel sales volume of 24.85 million tons, a decrease of 3.72% year-on-year, with a steel production and sales rate of 101.03%[34]. - The production of non-oriented silicon steel for electric vehicles increased by 20% year-on-year, achieving historical highs in both output and yield[35]. - The company launched 52 new product varieties in 2023, with a 12.2% increase in automotive steel sales and a 14.85% increase in heavy rail sales year-on-year[36]. - Export order volume increased by 33.85% year-on-year, with breakthroughs in the export of specialty steel products[36]. Research and Development - The company’s R&D capabilities are ranked among the top in the steel industry, with significant advancements in clean steel smelting and high-strength thick-walled pipeline steel technology[43]. - The company maintained a total of 3,811 valid patents, with 2,515 being invention patents, reflecting a 4.0% increase year-on-year[46]. - The company reported a decrease in R&D expenses to RMB 492 million, down 32.32% from RMB 727 million in the previous year, primarily due to reduced new product trial costs[52][53]. - The company is advancing several R&D projects, including domestic production of steel for high-speed train components, aiming for significant market impact in the future[67]. - The company has developed corrosion-resistant steel plates with a corrosion resistance capacity increased by over 2.6 times compared to traditional steel plates, addressing key technical challenges in marine construction[68]. Environmental Initiatives - The company has implemented 152 ultra-low emission projects with a total investment of RMB 3.21 billion, ensuring stable operation of pollution control facilities[193]. - In 2023, the company traded 2.46 billion kWh of clean energy, reducing electricity costs by RMB 160 million and cutting carbon emissions by 1.4 million tons[194]. - The company plans to complete four waste gas comprehensive utilization high-efficiency power generation units by 2024, expected to generate an additional 480 million kWh of electricity and reduce carbon emissions by 200,000 tons[194]. - The company achieved a carbon emission reduction of 0.03 tons per RMB 10,000 of output, reaching 5.54 tons per RMB 10,000 of output in 2023[193]. - The company has completed research on a carbon reduction plan for automotive steel, achieving a 30% reduction in carbon emissions for several products[195]. Governance and Management - The company has established a comprehensive corporate governance system in compliance with relevant laws and regulations, ensuring effective internal control[104]. - The company maintains complete independence from its controlling shareholder in terms of business, personnel, assets, and finances, aligning with legal requirements[104]. - The board consists of 8 members, including 4 independent non-executive directors, with plans to add at least one female director by the end of 2024[186]. - The company has implemented a diversity policy for board members, considering factors such as gender, age, culture, and professional experience[167]. - The board is responsible for significant corporate actions, including mergers, acquisitions, and capital structure changes, ensuring strategic alignment with shareholder interests[161]. Shareholder Engagement - The first temporary shareholders' meeting in 2023 had an investor participation rate of 57.95%[106]. - The second temporary shareholders' meeting in 2023 had an investor participation rate of 57.69%[107]. - The third temporary shareholders' meeting in 2023 had an investor participation rate of 67.01%[107]. - The company has conducted 16 investor relations activities to enhance communication with investors[179]. - The company responded to 62 investor inquiries through the Shenzhen Stock Exchange's interactive platform during the reporting period[180]. Future Outlook - The global economy is expected to continue its slow recovery in 2024, with the steel industry entering a new adjustment cycle, leading to a projected slight decline in overall steel demand[97]. - The company anticipates facing significant operational pressure due to raw material price fluctuations, environmental protection, and safety management risks in 2024[97]. - The company plans to invest 4.205 billion yuan in fixed assets and external investments in 2024, primarily funded by self-owned funds, with bank loans and bond issuance as supplementary sources[95]. - The company aims to strengthen capital management and accelerate ultra-low emission transformation to improve risk prevention capabilities[97]. - The company is actively pursuing strategic initiatives, including potential mergers and acquisitions, as part of its market expansion strategy[130].