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].

Financial Performance - Operating revenue for the year 2023 was RMB 113,502 million, a decrease of 13.40% compared to RMB 131,072 million in 2022[7]. - Total profit for 2023 was RMB -4,142 million, a significant decline from a profit of RMB -269 million in 2022, representing a decrease of 1,439.78%[7]. - Net profit attributable to shareholders for 2023 was RMB -3,257 million, compared to a profit of RMB 156 million in 2022, marking a decrease of 3,115.74%[7]. - Basic earnings per share for 2023 were RMB -0.347, a sharp decline from RMB 0.017 in 2022[7]. - Cash flow from operating activities for 2023 was RMB 1,579 million, a decrease of 74.28% from RMB 6,139 million in 2022[7]. - The total operating revenue for the year was RMB 113,502 million, with a quarterly breakdown showing Q1 at RMB 30,844 million, Q2 at RMB 27,981 million, Q3 at RMB 25,463 million, and Q4 at RMB 29,214 million[9]. - The total operating revenue for 2023 was RMB 113,502 million, a decrease of 13.40% compared to RMB 131,072 million in 2022[28]. - The steel processing industry accounted for RMB 113,311 million of the total revenue, down 13.35% from RMB 130,769 million in the previous year[29]. - Domestic sales in China were RMB 106,342 million, representing a decline of 14.94% from RMB 125,013 million in 2022[28]. - The company reported a net cash decrease of RMB 1,872 million, a significant drop of 513.77% compared to a decrease of RMB 305 million in the same period last year[27]. - The gross profit margin for the steel processing industry decreased by 2.83 percentage points to -0.50% in 2023[29]. - The sales volume of steel processing products was 2,485.49 million tons, down 3.72% from 2,581.65 million tons in 2022[30]. - The company reported a net profit of RMB (4,142) million for the year, resulting in a basic and diluted earnings per share of RMB (0.347)[142]. Assets and Liabilities - The total assets as of 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[8]. - Total liabilities increased to RMB 41,623 million in 2023, up 8.60% from RMB 38,138 million in 2022[8]. - The equity attributable to shareholders decreased by 5.69% to RMB 54,704 million in 2023 from RMB 58,140 million in 2022[8]. - The asset-liability ratio rose to 42.90% in 2023, an increase of 3.38 percentage points from 39.34% in 2022[8]. - Cash and cash equivalents decreased to RMB 3,221 million as of December 31, 2023, from RMB 5,093 million a year earlier, a decline of approximately 36.8%[118]. - Total current assets amounted to RMB 27,119 million, down from RMB 29,232 million in 2022, representing a decrease of about 7.2%[118]. - Total liabilities increased to RMB 41,623 million in 2023, compared to RMB 38,328 million in 2022, marking an increase of approximately 6.0%[119]. - The company's total assets as of December 31, 2023, were RMB 97,014 million, slightly up from RMB 96,991 million in 2022[121]. - The company’s net current liabilities increased to RMB (8,069) million in 2023 from RMB (6,922) million in 2022, indicating a decline in liquidity[144]. Operational Efficiency - The company achieved a production and material rate increase in new energy vehicle silicon steel, reaching historical highs in both production and material rates[15]. - The company reported a significant improvement in logistics efficiency and cost control, with major logistics indicators showing new breakthroughs[15]. - The company has implemented continuous cost reduction strategies, optimizing procurement and logistics to enhance operational efficiency[15]. - Operating costs also fell by 10.92% year-on-year to RMB 114.037 billion[24]. - Management expenses increased by 30.12% year-on-year to RMB 1.689 billion, primarily due to organizational reforms and enhanced labor productivity[24]. - Financial expenses decreased significantly by 47.02% year-on-year to RMB 258 million, attributed to a reduction in average indirect financing costs and lower exchange losses[25]. - R&D expenses dropped by 32.32% year-on-year to RMB 492 million, mainly due to reduced costs in new product trials[25]. - The company reported a 5% decrease in operational costs due to efficiency improvements[146]. Research and Development - The company launched 52 new product varieties, exceeding the planned flagship product ratio by 4.05 percentage points and direct supply ratio by 9 percentage points[16]. - The R&D investment for 2023 is RMB 2,852 million, representing an increase of 8.81% from RMB 2,621 million in 2022[52]. - R&D personnel count increased to 2,278 in 2023, a growth of 4.26% from 2,185 in 2022, with the proportion of R&D personnel rising to 8.45%[51]. - The company has developed advanced high-strength steel with laser welding technology, improving production efficiency and stability[49]. - The company has completed the development of corrosion-resistant steel plates, achieving a corrosion resistance improvement of 3 times compared to traditional steel plates[45]. - The company has developed a new line for low-carbon automotive steel, aiming to achieve a 30% reduction in carbon emissions[47]. - The company is investing $50 million in R&D for new technologies aimed at enhancing user experience[146]. Market and Sales Performance - The sales volume of automotive steel increased by 12.2% year-on-year, while heavy rail sales grew by 14.85% year-on-year[16]. - The company achieved a 33.85% year-on-year increase in export order volume, with significant breakthroughs in exporting container steel and 50-meter long heavy rails[16]. - The company is focusing on expanding its market presence through new product development and technological advancements in various sectors[40]. - Market expansion efforts have led to a 30% increase in market share in the Asia-Pacific region[146]. - New product launches contributed to a 25% increase in sales, with the latest product generating $300 million in its first month[146]. Strategic Initiatives - The company aims to enhance its core competitiveness and become a leading enterprise in the steel industry through its "11361" development strategy[19]. - The company plans to focus on reform and innovation in 2024, enhancing development quality and promoting world-class enterprise construction[20]. - The company plans to invest RMB 42.05 billion in fixed assets and external investments in 2024, primarily funded by internal resources[23]. - The company is focusing on digital empowerment to enhance core competitiveness and drive transformation[22]. - The company aims to improve its sustainable development capabilities by advancing low-carbon production technologies and enhancing energy efficiency[22]. Related Party Transactions - The approved transaction amount for related party transactions was RMB 3,702 million, which did not exceed the approved limit[99]. - The company engaged in related party transactions for the procurement of steel products, totaling RMB 1,377 million[97]. - The total amount of related party transactions for auxiliary materials was RMB 2,712 million[99]. - The company has established relationships with several related party suppliers, including Anshan Iron and Steel Group[99]. - The pricing principles for related party transactions were based on market principles[99]. - The company has engaged in joint investments with related parties, including a registered capital of RMB 180 million for a joint venture in chemical technology[107]. Compliance and Governance - The company has appointed Lixin Certified Public Accountants as the auditor for the 2023 fiscal year, with a fee of RMB 5 million[83]. - The company has engaged Lixin Certified Public Accountants for internal control audit services for 2023, with a fee of RMB 700,000[86]. - There were no significant lawsuits or penalties reported during the reporting period[88]. - The company has not faced any bankruptcy restructuring issues during the reporting period[88]. - The company has not violated any commitments related to avoiding competition with its controlling shareholder since the commitment was made[71].

Financial Performance - The company's operating revenue for the third quarter was RMB 25,463 million, a decrease of 16.67% compared to the same period last year[3]. - The net profit attributable to shareholders was RMB -769 million, representing a decline of 49.51% year-on-year[3]. - The basic earnings per share were RMB -0.082, a decrease of 49.07% compared to the previous year[3]. - Total operating revenue for the first nine months of 2023 was RMB 84,288 million, a decrease of 16.1% compared to RMB 100,850 million in the same period of 2022[20]. - Net profit for the first nine months of 2023 was a loss of RMB 2,094 million, compared to a profit of RMB 214 million in the same period of 2022[20]. - The company’s total comprehensive income for the first nine months of 2023 was a loss of RMB 1,573 million, compared to a gain of RMB 423 million in the same period of 2022[24]. Cash Flow and Liquidity - The net cash flow from operating activities decreased by 55.24% year-on-year, amounting to RMB 2,774 million[3]. - Cash flow from operating activities generated RMB 2,567 million in the first nine months of 2023, down from RMB 4,347 million in the same period of 2022[25]. - Cash and cash equivalents at the end of September 2023 were RMB 4,113 million, down from RMB 6,162 million at the end of 2022[21]. - The company’s cash and cash equivalents at the end of September 2023 were RMB 1,869 million, down from RMB 3,463 million at the end of 2022[25]. - The net increase in cash and cash equivalents decreased by RMB 1,744 million year-on-year, influenced by reduced cash inflows from operating activities[10]. Assets and Liabilities - Total assets at the end of the reporting period were RMB 96,639 million, a decrease of 0.31% from the end of the previous year[3]. - Total liabilities increased to RMB 39,905 million from RMB 38,138 million year-over-year[18]. - Total assets as of September 30, 2023, were RMB 91,617 million, slightly up from RMB 91,385 million at the end of 2022[22]. - Total liabilities increased to RMB 38,123 million as of September 30, 2023, up from RMB 36,283 million at the end of 2022[23]. - The company's cash and cash equivalents decreased to RMB 4,113 million from RMB 5,093 million[16]. Expenses - Management expenses increased by RMB 287 million year-on-year, primarily due to higher personnel costs[7]. - Research and development expenses decreased by RMB 208 million year-on-year, mainly due to reduced costs for new product trials[7]. - The company reported a significant increase in financial expenses, totaling RMB 219 million, compared to RMB 443 million in the previous year[20]. - Research and development expenses for the first nine months of 2023 were RMB 357 million, down 36.8% from RMB 565 million in the same period of 2022[20]. - The company’s financial expenses decreased to RMB 268 million in the first nine months of 2023 from RMB 476 million in the same period of 2022[24]. Shareholder Information - The total number of shareholders was 107,198, with the top 10 shareholders holding a combined 78.81% of shares[12]. - The company completed the repurchase and cancellation of 1,128,370 restricted stocks, reducing total shares from 9,400,979,520 to 9,399,442,527[14]. Market and Operational Insights - The company reported a decrease in operating profit, total profit, and net profit due to the weak cycle and low demand in the steel industry[8]. - The company has ongoing plans for market expansion and new product development, although specific figures were not disclosed in the call[14].

Financial Performance - Operating revenue for the first nine months of 2023 was RMB 25,463 million, a decrease of 16.67% compared to the same period last year[3]. - Net profit attributable to shareholders for the first nine months was RMB -769 million, representing a 49.51% increase in losses year-on-year[3]. - The net profit excluding non-recurring gains and losses for the first nine months was RMB -778 million, a 50.38% increase in losses compared to the previous year[3]. - Basic earnings per share for the first nine months was RMB -0.082, an increase in losses of 49.07% compared to the same period last year[3]. - Operating profit for the first nine months of 2023 was (2,863) million RMB, a significant decline from 99 million RMB in the same period of 2022[21]. - Net profit attributable to the parent company for the first nine months of 2023 was (2,115) million RMB, compared to 193 million RMB in the same period of 2022[21]. - Total comprehensive income for the first nine months of 2023 was (2,075) million RMB, down from 268 million RMB in the same period of 2022[23]. - Net profit for the first nine months of 2023 was a loss of RMB 1,613 million, compared to a profit of RMB 348 million in the same period of 2022[31]. Cash Flow and Assets - Cash flow from operating activities for the first nine months was RMB 2,774 million, a decrease of 55.24% year-on-year[3]. - The net cash inflow from operating activities decreased by RMB 3,424 million compared to the same period last year, primarily due to a decrease in cash received from sales of goods and services by RMB 17,691 million[10]. - Cash flow from operating activities generated a net cash inflow of RMB 2,567 million, down 40.9% from RMB 4,347 million in the previous year[33]. - Cash and cash equivalents at the end of September 2023 were 4,113 million RMB, down from 6,162 million RMB at the end of December 2022[26]. - The company reported a decrease in cash and cash equivalents to RMB 4,113 million as of September 30, 2023, down from RMB 5,093 million at the end of 2022, a decline of approximately 19.3%[16]. - The net increase in cash and cash equivalents decreased by RMB 1,744 million compared to the same period last year, influenced by various factors including a decrease in net cash inflow from operating activities[10]. Liabilities and Equity - Total liabilities increased to RMB 39,905 million as of September 30, 2023, compared to RMB 38,138 million at the end of 2022, indicating a rise of approximately 4.6%[19]. - Long-term borrowings increased significantly to RMB 3,569 million as of September 30, 2023, compared to RMB 600 million at the end of 2022, marking a substantial rise[19]. - The company reported a significant increase in long-term borrowings to RMB 3,439 million from RMB 600 million at the end of 2022, reflecting a strategic shift in financing[28]. - The company's total equity attributable to shareholders decreased to RMB 53,494 million from RMB 55,102 million year-over-year[29]. Operating Costs and Expenses - Total operating costs for the first nine months of 2023 were RMB 87,458 million, down from RMB 101,614 million in 2022, indicating a reduction of about 14%[20]. - Management expenses increased by RMB 287 million year-on-year, primarily due to higher personnel costs[7]. - Research and development expenses decreased by RMB 208 million year-on-year, mainly due to reduced trial production costs[7]. - The company’s R&D expenses for the first nine months of 2023 were RMB 357 million, down from RMB 565 million in the same period of 2022, a reduction of about 36.8%[20]. Market Conditions - Operating profit, total profit, net profit, and net profit attributable to the parent company decreased compared to the same period last year, primarily due to the weak cycle and low demand in the steel industry, with a significant drop in steel prices outpacing the decline in raw material prices[8]. - The company plans to focus on new product development and market expansion strategies to improve future performance[36].

Financial Performance - The company's operating revenue for the first half of 2023 was RMB 58,825 million, a decrease of 16.32% compared to RMB 70,294 million in the same period last year[21]. - The net profit attributable to shareholders of the listed company was a loss of RMB 1,346 million, representing a decline of 178.44% from a profit of RMB 1,716 million in the previous year[21]. - The net cash flow from operating activities was RMB 2,415 million, down 41.67% from RMB 4,140 million in the same period last year[21]. - The basic and diluted earnings per share were both RMB -0.143, a decrease of 178.57% compared to RMB 0.182 in the previous year[21]. - The total profit amounted to RMB -1,773 million, representing a decline of 180.37% year-on-year[63]. - The gross profit margin was -3.01%, a decline of 6.15 percentage points year-on-year[63]. - The net increase in cash and cash equivalents was RMB -1,371 million, a decrease of 95.30% year-on-year[84]. Assets and Equity - Total assets at the end of the reporting period were RMB 95,754 million, a decrease of 1.22% from RMB 96,935 million at the end of the previous year[23]. - The equity attributable to shareholders of the listed company was RMB 56,826 million, down 2.26% from RMB 58,140 million at the end of the previous year[23]. - The ratio of shareholders' equity to liabilities was 1.50 times as of June 30, 2023, down from 1.54 times at the end of 2022[111]. - Inventory increased to RMB 14,022 million, representing 14.64% of total assets, up from 14.00% last year[105]. Production and Sales - In the first half of 2023, the domestic crude steel production reached 536 million tons, a year-on-year increase of 1.3%[35]. - The company sold 12.79 million tons of steel, a decrease of 1.95% year-on-year, achieving a steel sales rate of 101.31%[41]. - The production of high magnetic permeability oriented silicon steel increased by 36% year-on-year, with a yield rate improvement of 3.32 percentage points[41]. - The export of steel products increased by 31.3% year-on-year, indicating enhanced international competitiveness of domestic high-end products[35]. - The sales volume of automotive high-strength steel products grew by 3.7% year-on-year, while the export order volume for various steel products increased by 17.2%[47]. Cost Management - The company successfully reduced the cost of steel production by RMB 85 per ton in the first half of the year, with external energy costs decreasing by 7.37% year-on-year[45]. - The average procurement cost of imported iron ore decreased by RMB 33 per ton, a year-on-year decline of 3.64%[33]. - The company is focusing on cost reduction and efficiency improvement through comprehensive benchmarking and smart operations integration[45]. Research and Development - Research and development expenses decreased by 37.97% to RMB 245 million, primarily due to reduced costs in new product trials[70]. - The company registered 449 patents, including 318 invention patents, accounting for 70.8% of the total[62]. - The company is actively expanding its core patent layout in the fields of automotive steel and low-alloy high-strength steel, forming a patent cluster that includes 12 inventions[62]. - The company launched 26 new product varieties and signed 103 technical agreements during the reporting period[47]. Corporate Governance and Compliance - The financial report for the first half of 2023 has not been audited[4]. - The financial report was prepared in accordance with China's Accounting Standards for Business Enterprises[5]. - The company is committed to enhancing its corporate governance standards in line with international practices[182]. - The company has maintained compliance with the Hong Kong Stock Exchange's public float requirements as of June 30, 2023[179]. Future Outlook and Strategy - The company plans not to distribute cash dividends or issue bonus shares for the first half of 2023[3]. - The company plans to enhance budget leadership and implement cost reduction strategies to improve operational efficiency in the second half of 2023[163]. - The company aims to strengthen market development and optimize product structure to enhance marketing effectiveness[166]. - The company anticipates that steel prices may rebound in the second half of 2023, supported by recovering demand and policy measures, despite ongoing global economic uncertainties[163]. - The company is focusing on high-quality development amidst challenges such as geopolitical conflicts, inflation, and a banking crisis, which have led to insufficient global demand growth[167]. Employee and Shareholder Information - As of June 30, 2023, the total number of employees in the company and its main subsidiaries was 28,021[198]. - The company completed the repurchase and cancellation of 2,040,931 restricted shares, reducing the total share capital from 9,403,020,451 shares to 9,400,979,520 shares[191]. - A total of 172 individuals had their restricted shares released, amounting to 14,779,050 shares, as part of the stock incentive plan[194]. - The participation ratio for the 2022 Annual General Meeting was 58.32% and for the first extraordinary general meeting in 2023 was 57.95%[185].

Financial Performance - The company's operating revenue for the first half of 2023 was RMB 58,825 million, a decrease of 16.32% compared to RMB 70,294 million in the same period last year[12]. - The net profit attributable to shareholders of the listed company was a loss of RMB 1,346 million, down 178.44% from a profit of RMB 1,716 million in the previous year[12]. - The net cash flow from operating activities was RMB 2,415 million, representing a decline of 41.67% from RMB 4,140 million in the same period last year[12]. - The basic earnings per share for the first half of 2023 was -RMB 0.143, compared to RMB 0.182 in the same period last year, a decrease of 178.57%[12]. - The total profit for the period was RMB -1,773 million, representing a decline of 180.37% year-on-year[25]. - The company’s sales profit margin was -3.01%, a decline of 6.15 percentage points year-on-year[22]. - The company’s gross profit margin was negative, resulting in an operating loss of RMB 1,758 million compared to an operating profit of RMB 2,224 million in the same period last year[107]. - The company’s total comprehensive income for the first half of 2023 was a loss of RMB 1,295 million, compared to a comprehensive income of RMB 1,806 million in the same period last year[107]. Assets and Liabilities - Total assets at the end of the reporting period were RMB 95,754 million, a decrease of 1.22% from RMB 96,935 million at the end of the previous year[12]. - The equity attributable to shareholders of the listed company was RMB 56,826 million, down 2.26% from RMB 58,140 million at the end of the previous year[12]. - The company's cash and cash equivalents decreased to RMB 3,722 million from RMB 4,696 million at the end of the previous period[109]. - Total current assets decreased to 27,742 million RMB, down from 29,232 million RMB at the end of the previous year[104]. - Total liabilities increased slightly to 38,256 million RMB, compared to 38,138 million RMB at the end of the previous year[106]. - The company's accounts receivable amounted to 4,472 million as of June 30, 2023, an increase of 24% from 3,608 million as of December 31, 2022[192]. Production and Sales - In the first half of 2023, the company produced 13.22 million tons of iron, 13.83 million tons of steel, and 12.62 million tons of steel products, with year-on-year increases of 0.72%, 2.44%, and a decrease of 0.35% respectively[17]. - The company sold 12.79 million tons of steel, a year-on-year decrease of 1.95%, achieving a steel sales rate of 101.31%[17]. - The average cost reduction per ton of steel was RMB 85, with a 3.75% decrease in three major expenses per ton of steel and a 7.37% reduction in external energy costs[17]. - The company exported steel products with an order volume increase of 17.2% year-on-year, achieving breakthroughs in automotive steel, rails, ship plates, and home appliance steel[18]. Research and Development - The company’s R&D expenses decreased by 37.97% to RMB 245 million, primarily due to reduced costs in new product trials[25]. - The company launched 26 new product varieties and signed 103 technical agreements in the first half of 2023, with engineering sales increasing by 22.9% year-on-year[17]. - The production of high magnetic induction oriented silicon steel increased by 36% year-on-year, with a product yield improvement of 3.32 percentage points[17]. Environmental and Social Responsibility - The company paid an environmental protection tax of RMB 47 million in the first half of 2023[64]. - The company has completed 15 energy-saving projects with a total investment of RMB 60.1 million, expected to yield annual benefits of RMB 36.1 million and reduce carbon emissions by approximately 44,000 tons[65]. - The company allocated a total of RMB 16.4 million for poverty alleviation projects, with RMB 16.1 million directed to targeted assistance in Ta County and RMB 300,000 for a project in Chaoyang City[66]. Corporate Governance - The company plans not to distribute cash dividends or bonus shares for the first half of 2023[3]. - The company held its annual general meeting on May 29, 2023, with an investor participation rate of 58.32%[50]. - The chairman was unable to attend the annual general meeting due to official duties, delegating the responsibility to another director[49]. Financial Management - The company plans to enhance budget leadership and focus on cost reduction, aiming to improve operational efficiency and profitability[46]. - The company has established a risk prevention framework to address potential market uncertainties and regulatory challenges[46]. - The company has approved the hedging business limits for 2023 in its board meetings held on March 30 and May 29, 2023[41]. Market Position - The market share for railway corrosion-resistant steel has consistently remained above 40%, maintaining the industry leader position for 19 consecutive years[20]. - The company has expanded its overseas marketing channels, focusing on demand along the "Belt and Road" initiative to enhance export competitiveness[47]. Employee Information - The total number of employees as of June 30, 2023, is 28,021, with 19,944 in production, 4,055 in technical roles, and 357 in sales[57][58]. - The company has a total of 9,437 employees with a bachelor's degree or higher, representing approximately 33.6% of the workforce[58]. Accounting and Financial Reporting - The financial statements were prepared based on the assumption of going concern, with no significant doubts about the company's ability to continue operations[122]. - The company has not experienced any changes in accounting policies or estimates during the reporting period[178]. - The company recognizes the net assets and operating results of subsidiaries from the date control is obtained, and adjusts for any losses exceeding minority interests[129].

Financial Performance - Revenue for the first half of 2023 was RMB 58,825 million, a decrease of 16.32% compared to RMB 70,294 million in the same period last year[7]. - Net profit attributable to shareholders was RMB -1,346 million, representing a decline of 178.44% from RMB 1,716 million in the previous year[7]. - Basic earnings per share were RMB -0.143, down 178.57% from RMB 0.182 in the same period last year[7]. - Total profit amounted to RMB -1,773 million, representing a decline of 180.37% year-on-year[19]. - The company's operating revenue for the reporting period was RMB 58,825 million, a decrease of 16.32% compared to the same period last year[16]. - The gross profit margin for the steel rolling processing industry was -0.25%, down 5.48 percentage points year-on-year[26]. - The company's sales revenue from steel products was RMB 53,442 million, a decrease of 16.83% compared to the previous year[25]. - The total operating revenue for the first half of 2023 was RMB 58,825 million, a decrease of 16.4% compared to RMB 70,294 million in the same period of 2022[80]. - The net profit attributable to the parent company for the first half of 2023 was RMB (1,346) million, compared to RMB 1,716 million in the same period of 2022, indicating a significant decline[81]. Cash Flow and Assets - Net cash flow from operating activities was RMB 2,415 million, a decrease of 41.67% compared to RMB 4,140 million in the previous year[7]. - Cash and cash equivalents decreased by RMB 1,371 million, a decline of 95.30% compared to the previous year[23]. - The total assets at the end of the reporting period were RMB 95,754 million, down 1.22% from RMB 96,935 million at the end of the previous year[8]. - Current assets totaled RMB 27,742 million as of June 30, 2023, a decrease of 5.1% from RMB 29,232 million at the end of 2022[79]. - The company's cash and cash equivalents decreased to RMB 3,722 million from RMB 5,093 million, reflecting a decline of 27%[76]. - The accounts receivable increased to RMB 3,721 million, representing 3.89% of total assets, up by 0.96 percentage points year-on-year[30]. - The company reported a significant increase in accounts receivable from RMB 3,608 million as of December 31, 2022, to RMB 4,472 million as of June 30, 2023[89]. Operational Efficiency and Cost Management - The company successfully reduced costs, with a decrease of 3.75% in three major expenses per ton of steel and a 7.37% reduction in external energy costs per ton of steel compared to the previous year[12]. - The company plans to enhance budget guidance and focus on cost reduction, aiming to improve operational efficiency[38]. - The company will strengthen lean manufacturing and ensure stable production and quality economic operations[38]. - The company aims to expand its market presence and optimize product structure to enhance marketing effectiveness[38]. Market and Product Development - The company is focusing on enhancing its supply chain financial services as part of its strategic initiatives for 2022-2024[6]. - The company plans to explore new market expansions and product developments in the upcoming quarters[2]. - Steel production reached 13.22 million tons, an increase of 0.72% year-on-year, while sales of steel products decreased by 1.95% to 12.79 million tons, achieving a sales-to-production rate of 101.31%[11]. - The export order volume increased by 17.2% year-on-year, with significant breakthroughs in various steel products including automotive steel and ship plates[12]. - The company launched 26 new products and signed 103 technical agreements during the reporting period, enhancing its marketing capabilities[12]. Research and Development - Research and development expenses decreased by 37.97% to RMB 245 million, primarily due to reduced costs in new product trials[20]. - The company will increase R&D efforts to continuously improve technological innovation capabilities[38]. Risk Management and Compliance - The company is committed to enhancing risk prevention capabilities and solidifying its foundational risk management strategies[38]. - The company has established internal control procedures for commodity futures hedging, which help mitigate operational risks and comply with relevant laws and regulations[48]. - The company did not engage in speculative derivative investments during the reporting period[48]. Related Party Transactions - The total amount of related party transactions was RMB 13,186 million, accounting for 30.58% of similar transactions[58]. - The procurement from Anshan Iron and Steel Group accounted for RMB 8,862 million, representing 20.55% of the total related transactions[58]. - The company has adhered to market principles in all related party transactions[58]. Corporate Governance - The company has established a sound corporate governance system in compliance with relevant regulations and standards[74]. - The audit committee has reviewed the accounting principles and internal controls up to June 30, 2023[55].

Financial Performance - The company's operating revenue for Q1 2023 was RMB 30,844 million, a decrease of 11.69% compared to RMB 34,927 million in the same period last year[3]. - The net profit attributable to shareholders of the listed company was RMB -149 million, a significant decline of 110.05% from RMB 1,482 million year-on-year[3]. - The company reported a decrease in operating profit, total profit, and net profit due to lower demand in the steel industry and high costs, leading to significant declines in performance[7]. - Net profit for Q1 2023 was a loss of RMB 145 million, compared to a profit of RMB 1,488 million in Q1 2022, representing a significant decline[16]. - Operating profit for Q1 2023 was a loss of RMB 170 million, down from a profit of RMB 2,048 million in Q1 2022[16]. - Net profit for Q1 2023 was a loss of RMB 305 million, compared to a profit of RMB 1,053 million in Q1 2022, indicating a significant decline[21]. Cash Flow - The net cash flow from operating activities increased by 29.42% to RMB 2,556 million, compared to RMB 1,975 million in the previous year[3]. - Cash flow from operating activities for Q1 2023 was RMB 2,556 million, compared to RMB 1,975 million in Q1 2022, indicating an increase[17]. - The company reported an increase in cash received from financing activities to RMB 2,390 million in Q1 2023, compared to RMB 40 million in Q1 2022[17]. - Cash flow from operating activities for Q1 2023 was RMB 2,400 million, an increase from RMB 1,266 million in Q1 2022[22]. Assets and Liabilities - The company's total assets at the end of the reporting period were RMB 99,780 million, reflecting a 2.93% increase from RMB 96,935 million at the end of the previous year[3]. - As of March 31, 2023, total assets amounted to RMB 99,780 million, an increase from RMB 96,935 million as of December 31, 2022, reflecting a growth of approximately 2.84%[13]. - Total liabilities stood at RMB 41,098 million, compared to RMB 38,138 million, marking an increase of around 5.12%[14]. - Total liabilities as of March 31, 2023, were RMB 40,211 million, up from RMB 36,283 million at the end of 2022, representing an increase of 5.1%[20]. - Non-current liabilities increased to RMB 2,920 million as of March 31, 2023, compared to RMB 1,843 million at the end of 2022, a rise of 58.5%[20]. Research and Development - Research and development expenses decreased by RMB 78 million compared to the same period last year, primarily due to reduced costs in new product trials[6]. - Research and development expenses decreased to RMB 134 million in Q1 2023 from RMB 212 million in Q1 2022, a reduction of 36.8%[16]. - Research and development expenses for Q1 2023 were RMB 112 million, down from RMB 208 million in Q1 2022, a decrease of 46.2%[21]. Investment Income - Investment income increased by RMB 29 million year-on-year, mainly due to higher returns from joint ventures[6]. - The company reported an investment income of RMB 88 million in Q1 2023, compared to RMB 33 million in Q1 2022, an increase of 167.7%[21]. Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 114,517, including 453 H-share shareholders[8]. - The company held a total of 9,401 million shares as of March 31, 2023, down from 9,403 million shares, reflecting a minor decrease in share capital[14]. - The company repurchased and canceled 2,040,931 restricted shares, reducing its registered capital from RMB 9,403,020,451 to RMB 9,400,979,520[11].

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。 (在中華人民共和國註冊成立之股份有限公司) （股份編號：0347） 2023年第一季度報告 鞍 鋼 股 份 有 限 公 司（「本公司」或「公 司」）董 事 會（「董事會」）欣 然 宣 佈 本 公 司 及 其 子 公 司 截 至 二 零 二 三 年 三 月 三 十 一 日 止 三 個 月（「報告期」）根 據《中 國 企 業 會 計 準 則》編 製 的 未 經 審 計 業 績。本 公 告 乃 根 據 香 港 聯 合 交 易 所 有限公司證券上市規則第13.09及13.10B條及香港法例第571章證券及期 貨條例第XIVA部 的 內 幕 消 息 條 文 作 出。 本 公 告 的 內 容 與 於 深 圳 證 券 交 易 所 刊 發 的 公 告 所 載 者 一 致。本 公 告 於 香 港 及 深 圳 同 步 刊 發。 – 1 – 第一節 重要提示 ...

Financial Performance - In 2022, the company reported a net profit attributable to shareholders of RMB 156 million, a decrease of 97.76% compared to RMB 6,964 million in 2021[24]. - The operating income for 2022 was RMB 131,072 million, down 3.71% from RMB 136,120 million in the previous year[15]. - The net cash flow from operating activities decreased by 52.54% to RMB 6,139 million in 2022 from RMB 12,935 million in 2021[15]. - The total assets at the end of 2022 were RMB 96,935 million, a decrease of 1.74% from RMB 98,652 million at the end of 2021[16]. - The total liabilities increased by 1.93% to RMB 38,138 million in 2022 from RMB 37,415 million in 2021[16]. - The basic earnings per share for 2022 were RMB 0.017, a decline of 97.70% from RMB 0.740 in 2021[15]. - The weighted average return on equity decreased to 0.26% in 2022 from 12.12% in 2021, a drop of 11.86 percentage points[15]. - The gross profit margin for steel products decreased by 6.59% to RMB 118,482 million in 2022, compared to RMB 126,845 million in 2021[44]. - The total profit for the period was a loss of RMB 269 million, a significant decline of 103.00% from a profit of RMB 8,959 million in the previous year[80]. Share Capital and Stock Transactions - The company issued 890 million H-shares at a price of HKD 1.63 per share in July 1997, and 300 million A-shares at RMB 3.90 per share in November 1997[5]. - In 2007, the company raised RMB 17 billion through a rights issue, issuing 1,106,022,150 A-shares at RMB 15.4 per share[7]. - The total number of shares after the 2019 capital reserve transfer was 9,405,250,201 shares, with A-shares accounting for 7,993,710,201 shares and H-shares for 1,411,540,000 shares[8]. - The company repurchased and canceled 2,229,750 A-shares in February 2022 due to the departure of employees who no longer met incentive conditions[8]. - The company’s total share capital was reduced to 9,400,979,520 shares after the cancellation of 2,040,931 A-shares in February 2023[8]. - The company reported a total share capital of 9,403 million shares as of March 30, 2023[17]. - The company’s registered capital decreased from RMB 9,403,020,451 to RMB 9,400,979,520 due to the cancellation of restricted shares[70]. Dividend and Profit Distribution - The board proposed a cash dividend of RMB 0.068 per share (including tax), totaling approximately RMB 64 million, which accounts for about 40% of the net profit attributable to shareholders[25]. - The company will withhold a 10% corporate income tax on dividends distributed to non-resident corporate shareholders[26]. - The company plans to hold the annual general meeting on May 29, 2023, to approve the profit distribution plan[25]. Research and Development - The company launched 173 technology research projects and was recognized as a "National Intellectual Property Advantage Enterprise"[32]. - Research and development expenses increased by 13.59% to RMB 727 million from RMB 640 million in the previous year[78]. - R&D investment amounted to RMB 2,621 million in 2022, a slight decrease of 0.8% from RMB 2,644 million in 2021, while the proportion of R&D investment to operating revenue increased from 1.93% to 2.0%[105]. - The number of R&D personnel with master's degrees increased by 110% from 199 in 2021 to 418 in 2022[104]. - The company is focusing on developing high-efficiency smelting technology to improve production efficiency and reduce costs[97]. Market and Industry Trends - In 2022, China's crude steel production was 1.018 billion tons, a year-on-year decrease of 1.7%, reflecting significant pressure on the steel industry due to various economic factors[28]. - The steel industry in China is undergoing digital transformation and low-carbon development, with increased investment in research and environmental protection[28]. - The company aims to enhance brand influence and market expansion through a multi-dimensional service and marketing system[38]. - The company aims to accelerate product upgrades and optimize market marketing to promote high-quality development and enhance innovation and competitiveness[149]. Corporate Governance - The company emphasizes the importance of governance and management stability, as evidenced by the structured changes in its board and management team[162]. - The company is committed to maintaining a high standard of corporate governance and transparency in its operations[161]. - The governance structure includes a mix of executive and independent directors, ensuring a balanced oversight of company operations[159]. - The total pre-tax remuneration for directors, supervisors, and senior management during the reporting period amounted to RMB 822.55 million[185]. Environmental and Social Responsibility - The company is committed to achieving carbon neutrality and enhancing green development capabilities through energy-saving projects[40]. - The company initiated 23 energy-saving projects, expected to reduce carbon dioxide emissions by over 800,000 tons annually[35]. - The company traded 2.62 billion kilowatt-hours of clean energy, reducing carbon dioxide emissions by 420,000 tons[35]. - Total donations made by the group during the reporting period amounted to RMB 16.3993 million[66]. Risk Management - The company has implemented strict management of bank accounts and funds, ensuring compliance with approval procedures for fund allocation and usage[132]. - The company has assessed legal risks associated with derivative trading and operates in compliance with national futures trading laws and regulations[130]. - The company plans to continue monitoring market conditions and adjusting its hedging strategies to manage risks effectively[130]. Subsidiaries and Investments - The company established three new subsidiaries during the year: Beijing Guomao, Delin Industrial Products, and New Energy Air[47]. - The company plans to invest RMB 3,709 million in fixed assets and external investments in 2023, primarily funded by self-owned capital[41]. - The company’s financial subsidiary reported total assets of RMB 35,926 million, indicating a strong financial position[140].