Financial Performance - Steel product sales volume reached 7.10 million tons, a decrease of 10.9% compared to 8.00 million tons in 2021[2]. - Revenue from self-produced steel products was RMB 282.2 billion, down 19.6% from RMB 350.9 billion in 2021[2]. - EBITDA for the year was RMB 2.357 billion, a decline of 45.7% from RMB 4.340 billion in 2021[3]. - Net profit attributable to equity holders was RMB 8.08 billion, down 67.6% from RMB 24.93 billion in 2021[3]. - Basic earnings per share decreased to RMB 0.22, a drop of 67.2% from RMB 0.67 in 2021[3]. - The annual profit for 2022 was RMB 811,355,000, a decrease of 68.1% compared to RMB 2,542,733,000 in 2021[7]. - The total revenue for 2022 was RMB 48,620,332,000, down from RMB 51,957,557,000 in 2021, representing a decline of 4.5%[6]. - The gross profit for 2022 was RMB 1,752,895,000, compared to RMB 4,091,606,000 in 2021, indicating a decrease of 57.2%[6]. - The company reported a gross profit margin of 4.8%, down from 8.4% in the previous year[3]. - The total operating profit before tax was RMB 755,731 thousand, down from RMB 3,051,412 thousand in 2021[20]. Assets and Liabilities - Total assets as of December 31, 2022, were RMB 48.02 billion, a decrease of 7.9% from RMB 52.12 billion in 2021[3]. - The total assets as of December 31, 2022, were RMB 48,023,590,000, down from RMB 52,119,178,000 in 2021, a decrease of 7.4%[10]. - The total liabilities as of December 31, 2022, were RMB 22,738,943,000, compared to RMB 28,004,320,000 in 2021, a decrease of 18.6%[10]. - Total debt decreased to 22,738,943 thousand RMB from 29,004,320 thousand RMB, representing a reduction of approximately 21.5%[11]. - Non-current liabilities totaled 1,584,950 thousand RMB, down from 2,446,046 thousand RMB, indicating a decline of about 35.1%[11]. - Current liabilities amounted to 21,153,993 thousand RMB, a decrease from 26,558,274 thousand RMB, reflecting a reduction of approximately 20.5%[11]. - The company reported trade payables of 3,667,664 thousand RMB, down from 6,902,573 thousand RMB, which is a decrease of around 46.8%[11]. Cash Flow and Financial Position - Cash and cash equivalents decreased to RMB 2,124,697,000 in 2022 from RMB 4,626,779,000 in 2021, a decline of 54.1%[10]. - The company reported a net financial income of RMB 236,530,000 in 2022, compared to RMB 226,145,000 in 2021, an increase of 4.3%[6]. - The company reported a current income tax expense of RMB 178,141 thousand for the year ended December 31, 2022, down from RMB 551,593 thousand in 2021, indicating a decrease of approximately 68%[34]. - The company incurred a loss of RMB 225,547 thousand from unrealized fair value changes in financial assets for the year ended December 31, 2022, compared to a gain of RMB 99,985 thousand in 2021[31]. Dividends and Shareholder Returns - Special dividend per share remained at HKD 0.03, unchanged from the previous year[3]. - The company proposed a final dividend of approximately HKD 223 million (around RMB 182 million), equating to HKD 0.06 per ordinary share, and a special dividend of approximately HKD 112 million (around RMB 91 million), equating to HKD 0.03 per ordinary share for the year ended December 31, 2021[44]. - For the year ended December 31, 2022, the company recommended a special dividend of approximately HKD 112 million (around RMB 98 million), equating to HKD 0.03 per ordinary share, pending shareholder approval[44]. Market and Operational Strategy - The company plans to focus on market expansion and new product development in the upcoming year[5]. - The company plans to focus on expanding its electrical equipment sales and improving operational efficiency in the steel segment[19]. - The company aims to enhance operational efficiency and sustainability through cost reduction, marketing efforts, and investment in environmental protection and product development[80]. - The company expects to continue to create greater value for its shareholders despite the challenging market conditions[87]. Research and Development - Research and development expenses increased to RMB 933,122,000 in 2022 from RMB 791,971,000 in 2021, reflecting a rise of 17.8%[6]. - The total expenses for research and development-related materials and energy surged to RMB 254,027 thousand in 2022 from RMB 113,341 thousand in 2021, an increase of 124.3%[28]. Environmental and Sustainability Initiatives - The group has invested heavily in environmental protection, achieving an A-level environmental performance rating from the Hebei Provincial Department of Ecology and Environment in January 2022[82]. - The group aims to achieve carbon peak by 2025 and carbon neutrality by 2050, investing in equipment upgrades and environmental projects[99]. - The group continues to invest in various environmental initiatives to reduce emissions of particulate matter, sulfur dioxide, and nitrogen oxides[82]. Industry Context - In 2022, China's steel industry faced significant challenges, with total profits dropping to RMB 36.55 billion, a decrease of 91.3% compared to 2021[77]. - The production volumes for pig iron, crude steel, and steel products in 2022 were 864 million tons, 1.018 billion tons, and 1.34 billion tons, representing decreases of 0.8% and 1.7%, and an increase of 0.3% respectively compared to 2021[77].

Financial Performance - Revenue for the six months ended June 30, 2021, reached RMB 17,247 million, a 48.5% increase from RMB 11,628 million in the same period of 2020[3] - Gross profit for the same period was RMB 24,985 million, up from RMB 17,021 million in 2020, reflecting a 46.3% increase[3] - Profit for the period attributable to owners of the Company was RMB 1,571 million, compared to RMB 775 million in 2020, marking a 102.6% increase[3] - Basic earnings per share for the period was RMB 0.42, compared to RMB 0.21 in the same period last year, representing a 100% increase[3] - EBITDA for the six months ended June 30, 2021, was RMB 2,641 million, compared to RMB 1,516 million in 2020, reflecting a 74.1% increase[3] - The Group's gross profit increased by approximately 85.6% to approximately RMB 1,960 million, and net profit for the interim period was approximately RMB 1,616 million, representing an increase of approximately 105.5% over the corresponding period last year[19] - EBITDA increased to approximately RMB 2.64 billion from approximately RMB 1.52 billion in the corresponding period last year, with basic earnings per share of RMB 0.42[19] Sales and Production - The average selling price per tonne of self-manufactured steel products increased to RMB 4,454 in 2021 from RMB 3,191 in 2020, a rise of 39.6%[7] - Total sales volume of self-manufactured steel products for the six months ended June 30, 2021, was 3,872,000 tonnes, compared to 3,644,000 tonnes in 2020, an increase of 6.2%[11] - The average unit price of self-manufactured steel products increased by 39.6% to approximately RMB 4,454 per tonne, while sales volume increased by 6.3% to approximately 3.87 million tonnes[19] - The sales volume of strips and strip products surged by 230.3% to 1,450 thousand tonnes, compared to 439 thousand tonnes in 2020[40] - The sales volume of H-section steel products increased by 9.8% to 1,595 thousand tonnes, up from 1,452 thousand tonnes in the previous year[40] Assets and Liabilities - The total assets of the company increased to RMB 49,169 million as of June 30, 2021, up from RMB 44,524 million at the end of 2020, a growth of 16.8%[4] - The net assets value per share (excluding non-controlling interests) increased to RMB 5.94 as of June 30, 2021, from RMB 5.56 at the end of 2020[4] - The Group's borrowings amounted to RMB 13.491 billion with fixed interest rates ranging from 0.24% to 7.50% per annum as of June 30, 2021[67] - The debt-to-capital ratio of the Group was 61.1% as of June 30, 2021, an increase from 48.4% on December 31, 2020[69] - The Group's capital commitments as of June 30, 2021, were approximately RMB 877 million, slightly down from RMB 886 million on December 31, 2020[69] Dividends - The Board declared an interim dividend of HK$0.10 per ordinary share and a special dividend of HK$0.05 per ordinary share[24] - The Group declared an interim dividend of HKD 0.10 per share and a special dividend of HKD 0.05 per share for the first half of 2021[25] - The proposed interim dividend is HK$372.3 million (approximately RMB309.3 million), representing HK$0.10 per ordinary share[76] Market Position and Strategy - The Group was ranked 278th in the top 2021 Fortune China 500 companies[21] - The Group's annual steel production capacity is maintained at approximately 10 million tonnes, with a focus on high added-value products[26] - The Group plans to enhance competitiveness by improving production efficiency, reducing costs, and developing high value-added products[57] - The Group is actively expanding its market-based steel products and raw materials trading business, as well as developing new materials using steel slag[58] Environmental and Operational Efficiency - The Group has implemented effective cost control mechanisms despite significant increases in raw material prices during the first half of the year[20] - The Group has ongoing projects under construction with a total gross floor area of approximately 390,000 m², expected to be completed in 2022 and 2023[52] - The Group continues to invest in environmental protection projects to achieve further emission reductions and improve environmental performance[59] - The completion of the Equipment Upsizing Project in 2020 has eliminated adverse impacts on operational efficiency, contributing to improved performance in the steel segment[44] Investment and Financial Management - As of June 30, 2021, the Group held financial assets at fair value through profit or loss of approximately RMB 4,293 million, accounting for 8.7% of total assets[78] - The Group's structured bank deposits were nil as of June 30, 2021, down from RMB 1,000 million as of December 31, 2020[71] - The Group's investment gains from iron ore and steel products future contracts amounted to approximately RMB 101 million, compared to investment losses of approximately RMB 29 million in the corresponding period of 2020[74] - The Group entered into foreign currency forward contracts to mitigate the impact of RMB/USD exchange rate fluctuations during the six months ended June 30, 2021[73] Economic Outlook - Demand for steel is expected to remain stable, with infrastructure investment anticipated to be more active in the second half of 2021[55] - The Chinese government is formulating a five-year plan for the steel industry (2021-2025) to achieve sustainable development and strict regulation of new steel production capacity[54]

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]

CHINA ORIENTAL GROUP COMPANY LIMITED 東 方 集 團 控 股 有 限 / in (Incorporated in Bermuda with Ilmited Ilability) (在百慕達註冊成立的有限公司) (Stock Code: 581) (股份代號: 581) annual report 年報 2018 Contents 目錄 | --- | --- | --- | |--------------------------------------------------------------|------------------------------|-------| | | | | | Financial Highlights | 財務摘要 2 | | | Corporate Information | 公司資料 5 | | | Chairman's Statement | 主席報告 8 | | | Management Discussion and Analysis | 管理層討論及分析 13 | | | Directors' and Senior Manag ...