Financial Performance - Revenue for 2022 was RMB 39,150 million, a decrease of 24.6% from RMB 51,958 million in 2021[3]. - Gross profit for 2022 was RMB 2,304 million, down 43.8% from RMB 4,092 million in 2021[3]. - Profit for the year attributable to owners of the Company was RMB 1,586 million, a decline of 36.3% compared to RMB 2,493 million in 2021[3]. - Basic earnings per share for 2022 was RMB 0.43, down from RMB 0.67 in 2021, representing a decrease of 36.4%[3]. - The Group's revenue for 2022 was approximately RMB 48.62 billion, a decrease of approximately 6.4% from the previous year[25]. - The Group's net profit for 2022 was approximately RMB 811 million, representing a decrease of approximately 68.1% compared to the previous year[25]. - EBITDA for the Group decreased to approximately RMB 2.36 billion, down from approximately RMB 4.34 billion in 2021[25]. - The Group's gross profit decreased by approximately 67.5% to approximately RMB 1,187 million compared to 2021[25]. - The Group's net profit (excluding non-recurring income) for the year ended December 31, 2022, decreased by approximately 89.6% to about RMB 8.11 billion compared to RMB 25.4 billion in 2021[27]. Sales and Production - Average selling price per tonne of self-manufactured steel products in 2022 was RMB 3,974, a decrease of 9.7% from RMB 4,401 in 2021[8]. - Sales volume of self-manufactured steel products in 2022 was 7,102,000 tonnes, down 10.9% from 7,973,000 tonnes in 2021[11]. - The total sales volume of self-manufactured steel products in 2022 was 7.1 million tonnes, representing a decrease of approximately 10.9% from 2021[52]. - The average selling price of self-manufactured steel products fell by 9.7% to approximately RMB 3,974 per tonne, while gross profit decreased by about 67.5% to approximately RMB 1.187 billion[27]. - National production volumes for pig iron, crude steel, and steel products in 2022 were 864 million tonnes, 1,018 million tonnes, and 1,340 million tonnes, representing decreases of 0.8% and 1.7%, and an increase of 0.3% respectively compared to 2021[19]. Industry Context - In 2022, the total profit of the iron and steel industry in China was RMB 36.55 billion, a decrease of 91.3% compared to 2021[19]. - The overall steel demand is expected to gradually improve in 2023, despite ongoing geopolitical tensions and economic uncertainties[65][66]. - The Group remains cautiously optimistic about the business environment for the iron and steel industry in 2023, anticipating a gradual recovery from the lows of the second half of 2022[66]. Environmental and Sustainability Goals - The Group aims to achieve carbon peaking by 2025 and carbon neutrality by 2050, in line with industry sustainability goals[18]. - The Ministry of Industry and Information Technology of the PRC set a target for electric furnaces to account for more than 15% of total crude steel production by 2025[22]. - The Group completed various projects in 2022, including a 135MW blast furnace gas self-generating unit and the upgrading of a 450 m² sintering machine, aimed at creating a green and low carbon factory[68]. Financial Position and Commitments - Total assets decreased to RMB 44,524 million in 2022 from RMB 52,119 million in 2021, a reduction of 14.6%[3]. - As of December 31, 2022, the Group had approximately 274,000 m² of projects under construction, with expected completion dates ranging from 2023 to 2029[63][64]. - As of December 31, 2022, the Group had unutilized banking facilities of approximately RMB 13.6 billion, up from approximately RMB 9.3 billion in 2021[73]. - The current ratio as of December 31, 2022, was 1.2 times, unchanged from 2021, while the gearing ratio improved to 47.3% from 55.6% in 2021[73]. - Cash and cash equivalents amounted to approximately RMB 2,125 million as of December 31, 2022, a decrease from approximately RMB 4,627 million in 2021[73]. Investment Activities - The Group recorded a non-recurring gain of approximately RMB 730 million during the year due to the disposal of Fangchenggang Jinxi Section Steel Technology Company Limited[25]. - The Group recognized a gain of approximately RMB 730 million from the disposal of Fangchenggang Jinxi in 2022[40]. - The Group completed a capacity transfer agreement with Tangshan Ganglu, transferring 475,800 tonnes per annum of iron production capacity and 284,200 tonnes per annum of steel production capacity for RMB 569.87 million, contributing a gain of approximately RMB 494 million[37]. - The Group's subsidiary HJT contributed approximately RMB 3.28 billion in revenue from sales of electrical equipment in 2022[36]. Dividend and Shareholder Returns - The Group proposed a special dividend of HK$0.03 per ordinary share based on the solid financial management results shared with shareholders[29]. - The Board proposed a special dividend of approximately HK$112 million (approximately RMB 98 million), representing HK$0.03 per ordinary share, subject to shareholder approval[80]. Risk Management - The Group's foreign exchange risk primarily arises from procurement of iron ore and related products from overseas suppliers, as well as foreign currency borrowings, both denominated in USD[78][79]. - During the year ended December 31, 2022, the Group entered into foreign currency forward contracts to mitigate the impact of RMB/USD exchange rate volatility[78][79]. - The significant fluctuation of steel products and iron ore prices during the year prompted the Group to enter into future or future option contracts[80]. Future Outlook and Strategy - The Group plans to continue exploring horizontal and vertical merger and acquisition opportunities to broaden revenue sources and enhance profitability[69]. - The Group's strategic development footprint will expand in Nanning, Guangxi, enhancing service capabilities in the South China region[38]. - The investment strategy emphasizes compliance with regulations set by the China Securities Regulatory Commission (CSRC) for allowable fixed-income products[138].

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 之 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 明，概 不 對 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 之 任 何 損 失 承 擔 任 何 責 任。 （於百慕達註冊成立的有限公司） （股份代號：581） 2022年 年 度 業 績 公 告 財 務 摘 要 | --- | --- | --- | --- | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------|--- ...

CHINA ORIENTAL GROUP COMPANY LIMITED 國 東 方 集 團 控 股 有 限 公 司 * E (Incorporated in Bermuda with limited liability) (在百慕達註冊成立的有限公司) (Stock Code: 581) (股份代號: 581) 2021 INTERIM REPORT 中期報告 * For identification purposes only 僅供識別 Pages 頁次 Contents 目錄 Financial Highlights 財務摘要 2 Corporate Information 公司資料 5 Management Discussion and Analysis 管理層討論與分析 7 Business and Financial Review 業務和財務概覽 13 Other Information 其他資料 86 Report on Review of Interim Financial Information 中期財務資料的審閱報告 95 Interim Condensed Consolidated Ba ...

Financial Performance - Revenue for 2019 was RMB 43,014 million, an increase of 5.4% from RMB 40,782 million in 2018[3] - Gross profit for 2019 was RMB 4,151 million, down 38.9% from RMB 6,791 million in 2018[3] - Profit attributable to owners of the Company for 2019 was RMB 3,210 million, a decrease of 32.8% compared to RMB 4,782 million in 2018[3] - Basic earnings per share for 2019 was RMB 0.86, down from RMB 1.31 in 2018[3] - EBITDA for 2019 was RMB 5,331 million, a decrease of 30.0% from RMB 7,619 million in 2018[3] - The Group's gross profit decreased by approximately 42.0% to approximately RMB3.83 billion, while the profit for the year reached approximately RMB3.27 billion, a decrease of approximately 32.8% from approximately RMB4.86 billion in the previous year[34] - EBITDA for the Group decreased from approximately RMB7.62 billion in the previous year to approximately RMB5.33 billion[34] - Consolidated gross profit in 2019 was RMB3,826 million, representing a decrease of approximately 42.0% from RMB6,602 million in 2018[66] - Gross profit per tonne decreased to RMB428 in 2019 from RMB632 in 2018, reflecting a decrease of 32.3%[68] - Gross profit margin decreased to 12.6% in 2019 from 18.5% in 2018[68] Sales and Production - Total sales volume of self-manufactured steel products in 2019 was 8,929,000 tonnes, a decrease of 14.6% from 10,453,000 tonnes in 2018[15] - Revenue from self-manufactured steel products in 2019 was approximately RMB30.28 billion, representing a decrease of about 15.1% from RMB35.68 billion in 2018[60][61] - The sales volume of H-section steel products was 3,547,000 tonnes, accounting for 39.7% of total sales, while sales of rebar decreased by 36.3% to 1,343,000 tonnes[57] - The Group's total sales volume of self-manufactured steel products in 2019 was 8,929,000 tonnes, a decrease of approximately 14.6% compared to 10,453,000 tonnes in 2018[54][55]. - The Group's annual steel production capacity remained at approximately 10 million tonnes in 2019[58]. - In 2019, the Group sold approximately 3.55 million tonnes of self-manufactured H-section steel products, maintaining its leading position in the H-section steel market in China[39] Assets and Liabilities - Total assets increased to RMB 35,407 million in 2019, up from RMB 29,609 million in 2018, representing a growth of 19.4%[3] - The company reported a net asset value per share of RMB 5.24 in 2019, up from RMB 4.68 in 2018[3] - As of December 31, 2019, the Group's cash and cash equivalents amounted to approximately RMB4,631 million, an increase from approximately RMB2,845 million in 2018[88] - The Group's current ratio was 1.5 as of December 31, 2019, compared to 1.6 in 2018, while the gearing ratio increased to 44.0% from 40.3%[88] - The debt-to-capital ratio of the Group was 28.9% as of December 31, 2019, compared to 15.9% in 2018[91] - As of December 31, 2019, the Group had total commitments of approximately RMB5,668 million, significantly up from approximately RMB2,195 million in 2018[95] Dividends and Shareholder Returns - The Group proposed a final dividend of HK$0.09 per ordinary share for the year 2019[38] - The Group proposed a final dividend of HK$335.0 million (approximately RMB306.1 million), representing HK$0.09 per ordinary share for the year ended December 31, 2019[106] - The Group will evaluate increasing dividend distributions to reward shareholders for their support[81] Market and Economic Conditions - The national production volume of pig iron, crude steel, and steel products in China increased by 5.3%, 8.3%, and 9.8% respectively in 2019 compared to 2018[30] - The COVID-19 epidemic has adversely impacted the overall economy and the steel industry, leading to increased social inventory and decreased steel prices[77] - Despite uncertainties, the overall iron and steel industry is expected to remain prudently optimistic in 2020[77] Projects and Initiatives - The Equipment Upsizing Project includes the construction of two new blast furnaces with a capacity of approximately 2,000 cubic meters each and two new converter furnaces with a capacity of approximately 150 tonnes each[39] - The Branch-line Railways Project aims to connect the Group's facilities with nearby railway transportation hubs, promoting energy conservation and emissions reduction[39] - The Fangchenggang Project is expected to have an annual iron and steel production capacity of approximately 10 million tonnes, with the first phase investment estimated at RMB22 billion[44][46] - The Group has initiated projects to enhance production efficiency and reduce emissions, including the establishment of a research center and new production equipment[41] Financial Instruments and Investments - The Group entered into foreign currency forward contracts to mitigate the impact of RMB fluctuations against USD due to procurement of iron ore from overseas suppliers[104] - The Group has implemented iron ore swap contracts to reduce the impact of significant fluctuations in iron ore prices during 2019[105] - The Group's restricted bank balances increased to approximately RMB1,083 million in 2019 from approximately RMB528 million in 2018[97] Strategic Planning - The Group plans to maintain competitiveness by improving production efficiency, developing high value-added products, and expanding market share[80] - The Group is considering various possibilities for corporate mergers and acquisitions to achieve sustainable development[81] - The Group is observing the release of a new steel production swap policy by the NDRC and will evaluate its impact on the Fangchenggang Project[81]