Financial Performance - The net profit attributable to shareholders for Q1 2023 was CNY 5.96 billion, slightly up from CNY 5.92 billion in the same period last year[21]. - The net profit attributable to shareholders of the parent company is CNY 31,867,859.66, a decrease of 91.85% compared to the same period last year[31]. - The total comprehensive income for the period is CNY 32,288,394.58, compared to CNY 390,945,446.61 in the previous year[24]. - Net profit for Q1 2023 was ¥32,288,394.58, a significant decrease from ¥390,945,446.61 in Q1 2022, reflecting a decline of approximately 91.8%[68]. - The net profit for Q1 2023 was -25,173,005.27 RMB, a significant decrease compared to a net profit of 44,534,850.01 RMB in Q1 2022, indicating a decline of approximately 156.5% year-over-year[75]. - The total comprehensive income for Q1 2023 was -25,173,005.27 RMB, contrasting with a comprehensive income of 44,534,850.01 RMB in Q1 2022, marking a decline of approximately 156.5%[75]. Assets and Liabilities - In Q1 2023, the total assets of Hangzhou Iron & Steel Co., Ltd. reached approximately CNY 32.82 billion, an increase from CNY 28.62 billion in the previous year, representing a growth of 14.8%[21]. - The company's total liabilities amounted to CNY 12.60 billion, up from CNY 8.42 billion, indicating a significant increase of 49.5%[21]. - Total assets at the end of the period amount to CNY 32,824,165,236.38, an increase of 14.71% from the end of the previous year[32]. - As of March 31, 2023, total current assets amounted to RMB 18,684,196,466.89, an increase from RMB 14,385,668,794.87 as of December 31, 2022, representing a growth of approximately 30.6%[42]. - The total non-current assets as of March 31, 2023, included long-term equity investments valued at RMB 10,886,177,837.64, slightly up from RMB 10,884,776,677.45[51]. - Total liabilities amounted to ¥5,487,971,467.14, with current liabilities contributing significantly to this figure[65]. Cash Flow - The company's net cash flow from financing activities increased by CNY 1.33 billion year-on-year, primarily due to an increase in cash received from borrowings[13]. - The net cash flow from operating activities is negative at CNY -289,922,818.99, a decline of 122.99% compared to the previous year[31]. - The net cash flow from financing activities is CNY 951,630,908.78, a significant improvement from a negative CNY -96,190,936.88 in the previous year[26]. - The net cash flow from operating activities was -$289.92 million, a significant decrease compared to $1.26 billion in the previous year[70]. - The company reported a net cash outflow from operating activities of 289.9 million RMB in the current period[37]. - The company has reported a significant increase in cash received from operating activities, indicating improved liquidity and operational performance[76]. Revenue and Expenses - Operating revenue for the period is CNY 12,488,093,003.88, reflecting a growth of 5.71% year-over-year[31]. - Total operating costs for Q1 2023 were ¥12,436,313,885.60, compared to ¥11,299,698,245.69 in Q1 2022, indicating an increase of about 10.1%[68]. - Research and development expenses in Q1 2023 amounted to ¥98,018,764.98, up from ¥78,043,208.28 in Q1 2022, marking an increase of about 25.6%[68]. - The company incurred management expenses of approximately $14.62 million, a significant increase from $1.64 million in the previous year[74]. Shareholder Information - The company reported a total of 54,183 common shareholders at the end of the reporting period[39]. - The largest shareholder, Hangzhou Steel Group Co., Ltd., holds 1,527,508,156 shares, representing 45.23% of total shares[39]. - The company has not identified any related party relationships among the top shareholders, except for subsidiaries controlled by Hangzhou Steel Group Co., Ltd.[39]. Strategic Initiatives - The company plans to expand its market presence and invest in new technologies to enhance operational efficiency and product offerings in the upcoming quarters[21]. - The company plans to continue focusing on market expansion and new product development to drive future growth[66]. - The company is actively exploring potential mergers and acquisitions to enhance its market position and operational capabilities[66]. - The company is focusing on enhancing its operational efficiency and exploring new market opportunities as part of its strategic initiatives[79]. Accounting and Standards - The company has implemented new accounting standards effective January 1, 2023, which may impact future financial reporting and tax liabilities[78].

Land Lease and Subsidiary Operations - The company signed a land lease agreement with Hangang Group on June 29, 2020, for 206,674 square meters to build the Zhejiang Cloud Computing Data Center, with annual rent for the northern plot at ¥8,860,893.30 and the southern plot at ¥6,980,668.80, both subject to a 5% increase every five years[2] - As of the report date, the southern plot has not yet commenced construction, while the northern plot's lease term is 20 years starting from the project's official commencement[2] - The company's subsidiary, Zhejiang Cloud Computing Company, was established on September 18, 2020, to operate the data center project[2] - The company has signed multiple lease agreements with Hangang Group for various properties, including a factory lease for ¥1,821,204.00 annually for 19,742 square meters[2] Financial Performance - The total liabilities of the company amounted to ¥6,819,162,870.22, an increase from ¥4,728,400,452.31 in the previous period[14] - The total equity of the company decreased to ¥15,105,580,828.85 from ¥15,871,783,186.21[14] - The net profit for the reporting period was ¥517,180,509.02, down from ¥987,984,034.10 in the previous period, indicating a decline of approximately 47.6%[16] - Basic earnings per share decreased to ¥0.15 from ¥0.29, reflecting a significant drop in profitability[16] - The company reported a total comprehensive income of ¥517,180,509.02 for the period, down from ¥987,984,034.10, indicating a significant decrease in overall financial performance[16] - The total comprehensive income for the period was approximately CNY 78.09 million, compared to CNY 198.60 million in the previous period, indicating a decrease of about 60.7%[18] Cash Flow and Operating Activities - The net cash flow from operating activities was CNY 129.66 million, significantly up from CNY 37.76 million in the same period last year, representing an increase of approximately 243.5%[20] - Cash inflows from sales of goods and services amounted to CNY 529.85 million, down from CNY 2.59 billion, reflecting a decrease of about 79.5%[20] - The company received CNY 151.07 million in other cash related to operating activities, which is an increase of approximately 73.5% compared to CNY 86.85 million in the previous period[20] - Total cash outflows from operating activities were CNY 21.94 million, a decrease of about 57.5% from CNY 51.68 million in the previous period[20] Accounting Policies and Estimates - The company has established specific accounting policies and estimates for financial instruments, fixed asset depreciation, and revenue recognition, ensuring compliance with accounting standards[54] - The company has not made any significant changes to its accounting policies or estimates during the reporting period[117] - The company has a clear accounting policy for lease liabilities, confirming that it does not apply to its current operations[1] Taxation and Provisions - The company operates under a 20% income tax rate for its main entity, Zhejiang Lanbeisi Information Technology Co., and a 25% rate for other entities[1] - The company has a bad debt provision of ¥23,343,600.00 against a total accounts receivable of ¥389,060,000.00, representing a provision ratio of 6%[4] - The company has recognized a bad debt provision of 23,343,600.00 RMB, which is 6.0% of the total balance of 389,060,000.00 RMB for commercial acceptance bills[172] Industry and Market Conditions - The steel industry showed a "high opening and low closing" trend in the first half of 2022, with steel prices turning from rising to falling, leading to a significant decline in industry profitability[188] - The digital economy in China has maintained its position as the second largest in the world, with the total revenue of electronic information manufacturing, software, telecommunications, and internet industries exceeding RMB 10 trillion in the first half of 2022[188] - The company reported a significant decline in steel production and profitability due to adverse economic conditions affecting the supply chain and market demand[188] Governance and Risk Management - The company’s governance structure includes a board of directors that ensures the accuracy and completeness of financial reports[193] - The report indicates that the company is facing risks related to future developments, which are detailed in the management discussion section[194]

Financial Performance - The company's operating revenue for Q3 2022 was ¥10,549,902,704.24, a decrease of 21.29% compared to the same period last year[7]. - The net profit attributable to shareholders was -¥20,691,041.27, representing a decline of 103.27% year-on-year[7]. - The net profit after deducting non-recurring gains and losses was -¥28,328,057.55, down 104.49% from the previous year[7]. - The company's net profit for the year-to-date was ¥496,203,459.85, a decrease of 69.36% year-on-year[12]. - Investment income decreased by 92.54% to ¥12,070,761.79 compared to the same period last year[12]. - Net profit for the third quarter was ¥496.46 million, down 69.5% from ¥1.62 billion in the same quarter of the previous year[36]. - Total comprehensive income attributable to the parent company for the first three quarters of 2022 was CNY 1,619,222,394.66, a decrease from CNY 1,620,636,099.24 in the same period of 2021[38]. - Basic and diluted earnings per share for the first three quarters of 2022 were both CNY 0.48, unchanged from the previous year[38]. Cash Flow and Financing - Cash flow from operating activities for the year-to-date was ¥2,428,452,942.63, an increase of 34.33% compared to the same period last year[7]. - The company's cash flow from financing activities increased by 42.97% to ¥949,186,381.15 compared to the previous year[12]. - Cash inflow from operating activities for the first three quarters of 2022 was CNY 37,241,683,802.87, down from CNY 40,478,443,473.04 in the same period of 2021, representing a decrease of approximately 5.8%[38]. - Net cash flow from operating activities for the third quarter of 2022 was CNY 2,428,452,942.63, an increase from CNY 1,807,865,217.96 in the same quarter of 2021[42]. - The company reported a total cash inflow from financing activities of CNY 4,706,246,445.62 for the third quarter of 2022, compared to CNY 1,921,789,193.65 in the same quarter of 2021[42]. Assets and Liabilities - The company's cash and cash equivalents as of September 30, 2022, amount to ¥12,719,539,907.19, an increase from ¥9,909,373,765.85 at the end of 2021[22]. - The total current assets as of September 30, 2022, are ¥18,887,170,929.40, compared to ¥15,380,512,894.24 at the end of 2021, reflecting a growth of approximately 22.5%[26]. - Total assets increased to ¥32.56 billion from ¥29.26 billion, representing an increase of approximately 7.8% year-over-year[29]. - Total liabilities rose to ¥12.34 billion, up from ¥8.71 billion, marking a significant increase of about 41.5%[29]. - The total non-current assets as of September 30, 2022, are ¥13,668,052,368.45, slightly down from ¥13,882,941,424.56 at the end of 2021[26]. Shareholder Information - The total number of common shareholders at the end of the reporting period is 62,869[16]. - The largest shareholder, Hangzhou Steel Group Co., Ltd., holds 1,527,508,156 shares, accounting for 45.23% of total shares[16]. - The company has a significant portion of its shares (7.58%) pledged under a non-public issuance of convertible bonds[16]. - The total equity attributable to shareholders decreased to ¥20.20 billion from ¥20.55 billion, a decline of approximately 1.7%[31]. Operational Strategy and Challenges - The company faces challenges due to rapid declines in steel product prices and high raw material costs, impacting profitability[21]. - The company aims to maintain a "low-cost, high-efficiency" operational strategy while accelerating technological and product innovation[21]. - The company is committed to adapting to market changes and adjusting its production and operational status accordingly[21]. - The company plans to focus on market expansion and new product development in the upcoming quarters[36]. Expenses - Operating costs decreased to ¥35.76 billion from ¥37.03 billion, reflecting a reduction of approximately 3.4%[32]. - Research and development expenses amounted to ¥564.88 million, slightly down from ¥603.33 million year-over-year[34]. - The company reported a decrease in sales expenses to ¥19.09 million from ¥27.53 million, a reduction of about 30.7%[32]. - The company’s financial expenses showed a loss of ¥253.11 million, compared to a loss of ¥214.32 million in the previous year[34].

Financial Performance - Revenue for 2022 reached 43.325 billion CNY, with a profit of 563 million CNY and a net profit attributable to shareholders of 480 million CNY[14] - The company's main business revenue for the current period was 42.82 billion yuan, with a cost of 41.66 billion yuan, compared to 49.21 billion yuan in revenue and 46.49 billion yuan in cost in the previous period[61] - Other business revenue for the current period was 504.54 million yuan, with a cost of 483.34 million yuan, compared to 747.45 million yuan in revenue and 740.70 million yuan in cost in the previous period[61] - The total revenue for the current period was 43.32 billion yuan, with a total cost of 42.14 billion yuan, compared to 49.96 billion yuan in revenue and 47.23 billion yuan in cost in the previous period[61] - Revenue recognized at a point in time for the current period was 43.26 billion yuan, compared to 49.78 billion yuan in the same period last year[65] - Net profit attributable to shareholders of the parent company in 2022 was RMB 479.84 million[109] - Revenue in 2022 decreased by 13.28% year-on-year to RMB 43.32 billion, compared to RMB 49.96 billion in 2021[141] - Net profit attributable to shareholders dropped by 70.75% to RMB 479.84 million in 2022, down from RMB 1.64 billion in 2021[141] - Operating cash flow turned negative at RMB -258.23 million in 2022, a 110.91% decrease from RMB 2.37 billion in 2021[141] - Total assets decreased by 2.22% to RMB 28.62 billion at the end of 2022, compared to RMB 29.26 billion at the end of 2021[141] - Revenue for the period decreased by 13.28% to RMB 43.32 billion compared to RMB 49.96 billion in the same period last year[177] - Net profit dropped significantly by 70.72% to RMB 480.10 million from RMB 1.64 billion year-on-year[177] - Operating cash flow turned negative at RMB -258.23 million, a decrease of 110.91% from RMB 2.37 billion in the previous year[177] Production and Sales - The company produced 4.444 million tons of hot-rolled coils and 1.1353 million tons of coke in 2022, with residual energy and heat power generation reaching 1.205 billion kWh[14] - Revenue from hot-rolled steel reached 18,127,297,846.94 RMB, contributing significantly to total revenue[81] - OEM steel revenue amounted to 4,958,223,845.04 RMB, showing strong performance in this segment[81] - Metal trade revenue totaled 9,188,870,693.55 RMB, indicating a robust market presence[81] - Scrap materials revenue was 8,213,504,531.25 RMB, reflecting efficient resource utilization[81] - Total revenue for 2022 was 43,321,988,102.54 RMB, with a diversified portfolio across multiple product categories[81] - Hot-rolled steel production increased by 11.73% to 4.44 million tons in 2022, with sales up 10.35% to 4.44 million tons[155] - OEM steel sales revenue decreased by 31.43% year-on-year, while raw material and metal trading revenue fell by 32.44%[152] - The company achieved revenue of 43.325 billion yuan, producing 4.444 million tons of hot-rolled coils and 1.1353 million tons of coke[176] Environmental and Sustainability Initiatives - Environmental protection projects, including coke oven gas desulfurization and denitrification, received RMB 7.08 million in funding, highlighting the company's commitment to environmental initiatives[35] - The company is working towards becoming a benchmark in environmental protection within the steel industry, aiming for an A-level environmental performance rating[103] - The company is exploring regional energy center construction and implementing photovoltaic power generation projects in resource utilization parks[103] - The company successfully reduced steel material consumption by 6.44 kg per ton of billet[123] - Nitrogen oxide emissions decreased by 12.68%, COD by 0.58%, and total nitrogen by 5.65%[123] - The company deployed 67 electric heavy trucks, reducing annual carbon emissions by over 8,000 tons[123] - The company completed 10 carbon reduction projects and was awarded the "Green Factory" title[123] R&D and Innovation - R&D investment is expected to exceed 3.3% of revenue, focusing on green processes, steel materials, and digital technologies[103] - The company is advancing projects such as hydrogen-rich blast furnace injection and low-carbon smelting technologies to reduce carbon emissions[103] - The company is focusing on high-end product development, such as oriented silicon steel and high-performance bearing steel, to increase market share[103] - 27 new products were developed, with a total sales volume of 360,900 tons[123] - R&D investment totaled 535.08 million yuan, accounting for 1.24% of total revenue, with 0% capitalization[172] - The company's R&D personnel account for 12.04% of the total workforce, with 422 employees engaged in R&D activities[186] Financial Management and Investments - The company's land use rights at the end of the period were valued at 2.554 billion CNY, with a cumulative amortization of 535.865 million CNY[20] - The total value of the company's intangible assets at the end of the period was 2.953 billion CNY, with a cumulative amortization of 820.883 million CNY[20] - The company's development expenditure and goodwill were not applicable for the reporting period[21] - The company's long-term prepaid expenses were not detailed in the report[22] - Prepaid equipment and software payments increased to RMB 25.39 million from RMB 10.02 million, reflecting a significant investment in future operations[23] - Land transfer deposits remained stable at RMB 11.43 million, indicating no new land acquisitions during the period[23] - Total prepayments and deposits increased to RMB 36.99 million from RMB 21.45 million, showing a 72.5% increase in prepaid expenses[23] - Credit borrowings stood at RMB 50 million, replacing previous guaranteed borrowings of the same amount[23] - LC discount borrowings increased significantly to RMB 255 million from RMB 130 million, reflecting a 96.2% rise in short-term financing[23] - Value-added tax payable more than doubled to RMB 83.85 million from RMB 38.87 million, indicating higher taxable sales or input tax credits[25] - Corporate income tax payable decreased sharply to RMB 55.28 million from RMB 177.40 million, suggesting significant tax payments or adjustments[25] - Total accounts payable decreased slightly to RMB 2.45 billion from RMB 2.51 billion, with a notable reduction in maintenance fees from RMB 151.78 million to RMB 94.63 million[29] - Total other payables decreased to RMB 325.80 million from RMB 452.00 million, with a significant reduction in sales service fees from RMB 278.45 million to RMB 92.05 million[37] - The company's statutory surplus reserve increased by 12,601,301.73 RMB, reflecting prudent financial management[85] - The company plans to distribute a cash dividend of RMB 0.5 per 10 shares, totaling RMB 168.86 million, accounting for 35.19% of the net profit[109] - The company invested a total of 900 million yuan in equity investments during the reporting period, establishing subsidiaries such as Deqing Steel Association Technology Co., Ltd. and Lankao Hanggang Supply Chain Co., Ltd.[194] - Non-equity investments amounted to 1.249 billion yuan, primarily allocated to the Zhejiang Cloud Computing Project and Ninggang's technical and green intelligent transformation projects[194] - The company's short-term loans increased by 73.56% to 349.02 million yuan, mainly due to a 276 million yuan increase in loans from subsidiary Ningbo Steel[200] - Long-term loans increased to 42.87 million yuan, driven by a rise in fiscal discount loans obtained by subsidiary Hanggang Cloud[200] - The company's other non-current assets increased by 72.48% to 36.99 million yuan, primarily due to prepayments for engineering equipment by subsidiary Ningbo Steel[200] - The company's deferred tax liabilities decreased by 41.87% to 26.02 million yuan, mainly due to accelerated depreciation of fixed assets by subsidiary Ningbo Steel[200] - The company's special reserves increased by 38.28% to 3.35 million yuan, driven by increased safety production reserves by subsidiary Ningbo Steel[200] - The company's long-term payables decreased by 33.33% to 37.92 million yuan, primarily due to payments for 2022 emission rights fees by subsidiary Ningbo Steel[200] - The company's accounts receivable increased due to the expansion of operations by subsidiary Renewable Resources, leading to higher receivables[200] Market and Industry Challenges - The steel industry faced challenges in 2022 due to weakening downstream demand, falling steel prices, and rising raw material costs[16] - The digital economy industry in China grew by 18% in 2022, reaching a scale of 1.57 trillion CNY[16] - Q4 revenue declined due to reduced production at Ningbo Steel, falling steel prices, and decreased trading of raw materials and metals[143] - Accounts payable at Ningbo Steel decreased by RMB 2.055 billion at the end of 2022 compared to the end of Q3[143] - Contract liabilities at Ningbo Steel decreased by RMB 1.316 billion at the end of 2022 compared to the end of Q3[143] - Income tax expenses decreased due to a 15% tax rate applied to Ningbo Steel and a decline in total profit[151] - Operating cash flow decreased due to a 7.525 billion yuan reduction in cash received from sales of goods and services, a 4.226 billion yuan reduction in cash paid for goods and services, and a 390 million yuan reduction in taxes paid[157] - Investment cash flow decreased by 1.24 billion yuan due to reduced cash received from disposal of subsidiaries and 291 million yuan reduction in cash paid for fixed assets and long-term assets[157] - Financing cash flow decreased by 236 million yuan due to reduced cash received from other financing activities and a 343 million yuan reduction in cash paid for other financing activities[157] - Accounts receivable increased by 66.65% to 879.9 million yuan, while accounts receivable financing decreased by 76.39% to 155.36 million yuan[166] - Prepaid expenses increased by 35.88% to 851.16 million yuan, and other receivables increased by 120.86% to 53.06 million yuan[166] - Credit impairment losses decreased to 6.8851 million yuan due to a 106 million yuan increase in accounts receivable and notes[163] - Asset impairment losses increased due to inventory write-downs at subsidiary Ningbo Steel[163] - Black metal smelting and processing revenue decreased by 10.52% to RMB 24.23 billion, with a 5.19 percentage point drop in gross margin[180] - OEM steel revenue fell by 31.43% to RMB 4.96 billion, with a slight decrease in gross margin by 0.38 percentage points[180] - Revenue from the South China region surged by 452.24% to RMB 2.11 billion, although gross margin decreased by 3.65 percentage points[180] - Online sales revenue increased by 56.52% to RMB 573.43 million, but gross margin decreased by 6.94 percentage points[180] - Sales to the top five customers accounted for 25.50% of total annual sales, with related party sales making up 16.76% of total sales[185] - Cost of raw materials for black metal smelting and processing increased by 6.03% to RMB 14.67 billion, accounting for 35.23% of total costs[183] - Revenue from steel by-products grew by 66.68% to RMB 1.15 billion, but gross margin decreased by 15.20 percentage points[180] Employee Welfare and Social Responsibility - The company's total employee welfare expenses for the current period were 693.86 million yuan, with a total of 842.50 million yuan in expenses and 133.30 million yuan in net expenses[52] - The company's total social insurance expenses for the current period were 43.52 million yuan, with a total of 43.53 million yuan in expenses and 39,177.41 yuan in net expenses[52] - The company's total housing provident fund expenses for the current period were 68.93 million yuan, with a total of 68.95 million yuan in expenses and 1,314.00 yuan in net expenses[52] - The company's total expenses for union funds and employee education funds for the current period were 14.41 million yuan, with a total of 14.28 million yuan in expenses and 3.25 million yuan in net expenses[52] Digital Economy and Technology - The company is expanding its data center services, offering integrated solutions including IaaS, PaaS, SaaS, and DaaS[103] - The company is actively promoting the construction of public service industry clouds, including health cloud and education cloud[103] - The number of activated cabinets reached 1,903, with approximately 12,439 servers in operation[123] - CPU resource utilization reached 72.18%, with X86 cluster utilization at 89.04%[123] Strategic Goals and Future Plans - The company aims to achieve an annual revenue of RMB 45 billion by enhancing competitiveness in steel manufacturing and expanding the digital economy industry[103] - The company is advancing projects such as hydrogen-rich blast furnace injection and low-carbon smelting technologies to reduce carbon emissions[103] - The company is focusing on high-end product development, such as oriented silicon steel and high-performance bearing steel, to increase market share[103] - The company is working towards becoming a benchmark in environmental protection within the steel industry, aiming for an A-level environmental performance rating[103] - The company is exploring regional energy center construction and implementing photovoltaic power generation projects in resource utilization parks[103] - Annual sales of high-quality specialty products reached 2.402 million tons, a year-on-year increase of 6.6%[123] - The proportion of three core product categories (special steel, automotive, and deep-drawing steel) accounted for 56.77% of all specialty product sales, up 5.9 percentage points year-on-year[123] Non-Recurring Items and Special Reserves - The non-recurring profit and loss for 2022 amounted to 56.903 million CNY, a significant decrease from 110.657 million CNY in 2021[12] - The company's government subsidies at the end of the period amounted to 100.52 million yuan, with an increase of 13.67 million yuan and a decrease of 13.47 million yuan during the period[56] - The company's deferred tax assets related to government subsidies at the end of the period amounted to 100.52 million yuan, with an increase of 13.67 million yuan and a decrease of 13.47 million yuan during the period[56] - The company's special reserves increased by 38.28% to 3.35 million yuan, driven by increased safety production reserves by subsidiary Ningbo Steel[200] Earnings and Shareholder Returns - Basic earnings per share (EPS) for 2022 was 0.14 RMB, a decrease of 71.43% compared to 2021[88] - Weighted average return on equity (ROE) for 2022 was 2.37%, down by 5.77 percentage points from 2021[88] - Net profit attributable to shareholders in Q1 2022 was 390,841,991.88 RMB, but turned negative in Q3 and Q4[90] - Operating cash flow in Q1 2022 was 1,261,226,318.56 RMB, but significantly decreased to -2,686,682,741.00 RMB in Q4[90] - The company plans to distribute a cash dividend of RMB 0.5 per 10 shares, totaling RMB 168.86 million, accounting for 35.19% of the net profit[109]

2022 年第三季度报告 单位：元 币种：人民币 1 / 12 证券代码：600126 证券简称：杭钢股份 杭州钢铁股份有限公司 2022 年第三季度报告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 重要内容提示： 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真实、准确、完整， 不存在虚假记载、误导性陈述或重大遗漏，并承担个别和连带的法律责任。 公司负责人、主管会计工作负责人及会计机构负责人（会计主管人员）保证季度报告中财务 信息的真实、准确、完整。 第三季度财务报表是否经审计 □是 √否 一、 主要财务数据 (一)主要会计数据和财务指标 本报告期 年初至报告期 | --- | --- | --- | --- | --- | |-----------------------------------------------|-------------------|------------------------------|-------------------|---------------------- ...

Financial Performance - The company's operating revenue for the first half of 2022 was approximately ¥25.78 billion, an increase of 1.27% compared to ¥25.46 billion in the same period last year[17]. - The net profit attributable to shareholders for the first half of 2022 was approximately ¥516.89 million, a decrease of 47.62% from ¥986.86 million in the same period last year[17]. - The basic earnings per share for the first half of 2022 was ¥0.15, down 48.28% from ¥0.29 in the same period last year[18]. - The company reported a decrease of 42.40% in net profit after deducting non-recurring gains and losses, amounting to approximately ¥493.52 million compared to ¥856.88 million in the same period last year[17]. - The company achieved operating revenue of 25.78 billion RMB, a year-on-year increase of 1.27%[25]. - Net profit attributable to the parent company was 517 million RMB, a decrease of 47.62% year-on-year[24]. - The company reported a net loss attributable to owners of CNY 675,437,816.60 for the first half of 2022[81]. Cash Flow and Assets - The net cash flow from operating activities increased by 85.85% to approximately ¥2.50 billion, compared to ¥1.35 billion in the same period last year[17]. - The total assets at the end of the reporting period were approximately ¥31.01 billion, an increase of 5.96% from ¥29.26 billion at the end of the previous year[17]. - The company reported a total cash balance of approximately ¥11.16 billion at the end of the period, up from ¥9.91 billion at the beginning of the period, indicating a growth of about 12.6%[140]. - Cash and cash equivalents rose to CNY 11,160,908,943.03, up from CNY 9,909,373,765.85, indicating an increase of about 12.63%[63]. - The total current assets increased to CNY 17,384,609,486.84 from CNY 15,380,512,894.24, representing a growth of approximately 13.06%[63]. Liabilities and Equity - The total liabilities increased to CNY 10,457,372,899.96 from CNY 8,382,044,142.60, which is an increase of approximately 24.73%[64]. - The total equity attributable to shareholders decreased to ¥20.22 billion, a decline of about 1.57% from ¥20.55 billion at the end of the previous year[17]. - The company reported a guarantee deposit for bank acceptance bills of approximately ¥45.16 million at the end of the period, compared to ¥26.55 million at the beginning, showing an increase of about 69.9%[141]. - The total amount of notes payable at the end of the period is CNY 2,917,718,573.80, up from CNY 2,238,050,722.36 at the beginning[195]. Operational Efficiency - The company has implemented a highly integrated ERP system that enhances management efficiency and transparency, aligning online design with offline processes[22]. - The company successfully reduced particulate emissions by 11.2% and average dust reduction by 12.7% compared to the same period last year[24]. - The company aims to enhance product quality and market competitiveness by adhering to a "low-cost, high-efficiency" operational strategy[37]. Industry Context - The steel industry experienced a significant decline in performance, with steel production decreasing year-on-year due to the impact of COVID-19, leading to a drop in demand from downstream industries[21]. - The digital economy sector showed robust growth, with the total revenue of electronic information manufacturing, software, telecommunications, and internet industries exceeding 10 trillion RMB in the first half of the year[21]. - The steel industry is facing high raw material costs and declining profitability, indicating a challenging market environment[21]. Environmental and Compliance - Environmental pressures are increasing with stricter emission standards, and the company is committed to achieving compliance with pollution discharge limits and advancing ultra-low emission transformations[37]. - The company has completed 24 out of 28 ultra-low emission transformation projects, with the remaining projects progressing as planned[42]. - The company has established a comprehensive pollution prevention facility that operates in conjunction with its main production equipment[42]. Investments and Projects - The company invested ¥140.075 million in equity investment projects, primarily for the registered capital of Zhejiang Cloud Computing Data Center Co., Ltd.[31]. - The total investment in the Zhejiang Cloud Computing Data Center project (Phase I) is ¥95,163,457.59, which is still under construction[34]. - The company is investing in digital economy projects in Hangzhou, which is recognized as a national pilot city for cloud computing innovation, benefiting from strong policy support[22]. Risk Management - The company has indicated potential risks in its future development strategies, which are detailed in the management discussion and analysis section[5]. - The company faces operational risks due to falling steel prices and rising raw material costs, leading to compressed profit margins and uncertainty in earnings[37]. - The company is entering the digital economy sector, which presents operational risks due to a lack of management experience and professional talent in this area[37]. Shareholder Information - The largest shareholder, Hangzhou Steel Group Co., Ltd., holds 1,527,508,156 shares, representing 45.23% of the total shares[59]. - The company has a total of 66,429 common stock shareholders as of the end of the reporting period[59]. - The company has committed to avoiding direct or indirect competition with Hangzhou Iron & Steel Co., Ltd. following the closure of its production base in 2015[48].

Financial Performance - The net profit attributable to shareholders for 2021 was RMB 1,640,658,327.88, with the parent company achieving a net profit of RMB 1,012,898,582.47[4] - The company's operating revenue for 2021 reached ¥49,961,420,226.57, representing a 51.92% increase compared to ¥32,887,496,605.45 in 2020[17] - Net profit attributable to shareholders was ¥1,640,658,327.88, up 44.40% from ¥1,136,217,070.95 in the previous year[17] - The net profit after deducting non-recurring gains and losses was ¥1,530,000,843.87, a 36.56% increase from ¥1,120,388,546.86 in 2020[17] - Basic earnings per share for 2021 were ¥0.49, a 44.12% increase from ¥0.34 in 2020[19] - The total distributable profit for the parent company as of December 31, 2021, was RMB 934,605,107.28 after accounting for retained earnings and cash dividends[4] - The proposed cash dividend for 2021 is RMB 2.50 per 10 shares, totaling RMB 844,297,270.75, which represents 51.46% of the net profit attributable to shareholders[4] Audit and Compliance - The company has received a standard unqualified audit report from Tianjian Accounting Firm[3] - The board of directors and management have confirmed the accuracy and completeness of the financial report[2] - There were no non-operating fund occupations by controlling shareholders or related parties reported[6] - The company has not violated decision-making procedures for external guarantees[6] Operational Highlights - The total share capital as of December 31, 2021, was 3,377,189,083 shares[4] - The company produced 1.0867 million tons of coke, 3.8327 million tons of molten iron, 4.0536 million tons of slab, and 3.98 million tons of hot rolled coil in 2021[24] - The company developed 21 new products in 2021, expanding new product volume to 524,400 tons and generating an additional profit of 39.3131 million yuan from new products, with high-quality specialty products accounting for 56.02% of total products[24] Research and Development - Research and development expenses for the year reached 530 million yuan, a 15.39% increase compared to the previous year, with significant advancements in high-carbon tool steel product development and the establishment of a smart control platform for hot-rolled steel production[24] - The company aims to target a research and development investment rate exceeding 3.2% for the year, with plans to publish at least five national or industry standards[70] Environmental and Social Responsibility - The company was recognized as a provincial-level "waste-free factory" and a four-star "green factory" in Ningbo, with pollutant emissions significantly reduced by 26.7% for particulate matter, 34.2% for sulfur dioxide, and 23.8% for ammonia nitrogen compared to the previous year[25] - The company is committed to the "dual carbon" development strategy, aiming to become a green and low-carbon demonstration enterprise[112] - The company has implemented measures to control energy consumption effectively, completing the orderly electricity usage tasks as required by local energy authorities[112] Governance and Management - The company held 2 shareholder meetings and 7 board meetings during the reporting period, ensuring compliance with decision-making processes and information disclosure requirements[73] - The board consists of 9 members, including 3 independent directors, ensuring compliance with governance standards and enhancing decision-making rigor[75] - The company has established a complete business system with independent operational capabilities, maintaining independence from its controlling shareholder, Hangang Group[76] Financial Position - The total assets at the end of 2021 were ¥29,263,454,318.80, a 5.08% increase from ¥27,849,860,643.77 in 2020[17] - The net assets attributable to shareholders increased to ¥20,547,160,472.20, reflecting a 3.11% growth from ¥19,927,117,161.06 in 2020[17] - The company's cash and cash equivalents reached approximately ¥9.91 billion, up from ¥7.27 billion in the previous year, indicating a growth of approximately 36.0%[158] Risks and Challenges - The company faces risks related to environmental standards and will implement measures to ensure compliance with increasingly stringent emission requirements[72] - The company is entering the digital economy sector, which poses operational risks due to a lack of management experience and professional talent in this area[72] Strategic Initiatives - The company aims to enhance competitiveness in the steel manufacturing industry while fostering the digital economy, particularly through investments in Internet Data Centers (IDC)[68] - The company plans to increase the proportion of high-quality specialty products to 56% by the end of the year, focusing on high-end product development and technological innovation[69]

Financial Performance - The net profit attributable to shareholders for 2021 was RMB 1,640,658,327.88, with the parent company achieving a net profit of RMB 1,012,898,582.47[4] - The company's operating revenue for 2021 reached ¥49,961,420,226.57, representing a 51.92% increase compared to ¥32,887,496,605.45 in 2020[17] - Net profit attributable to shareholders was ¥1,640,658,327.88, up 44.40% from ¥1,136,217,070.95 in the previous year[17] - The net profit after deducting non-recurring gains and losses was ¥1,530,000,843.87, a 36.56% increase from ¥1,120,388,546.86 in 2020[17] - The company's total assets increased by 5.08% to ¥29,263,454,318.80 at the end of 2021, compared to ¥27,849,860,643.77 at the end of 2020[17] - Basic earnings per share for 2021 were ¥0.49, reflecting a 44.12% increase from ¥0.34 in 2020[19] - The weighted average return on equity rose to 8.14%, an increase of 2.38 percentage points from 5.76% in 2020[19] - The company achieved an operating revenue of 49.961 billion yuan, a year-on-year increase of 51.92%, and a net profit attributable to shareholders of 1.641 billion yuan, up 44.40% year-on-year[24] Dividends and Profit Distribution - The total distributable profit for the parent company as of December 31, 2021, was RMB 934,605,107.28 after accounting for retained earnings and cash dividends[4] - The proposed cash dividend for 2021 is RMB 2.50 per 10 shares, totaling RMB 844,297,270.75, which represents 51.46% of the net profit attributable to shareholders[4] - The company did not plan to issue bonus shares or increase capital from surplus reserves for the 2021 fiscal year[4] Audit and Compliance - The company has received a standard unqualified audit report from Tianjian Accounting Firm[3] - The board of directors and management have confirmed the accuracy and completeness of the financial report[2] - There were no non-operating fund occupations by controlling shareholders or related parties reported[6] - The company has not violated decision-making procedures for external guarantees[6] Research and Development - Research and development expenses for the year amounted to 530 million yuan, a 15.39% increase compared to the previous year, with significant achievements in high-carbon tool steel product development and several awards received for innovation[24] - The company developed 21 new products in 2021, expanding new product volume to 524,400 tons and generating additional revenue of 39.3131 million yuan from these products, with high-quality specialty products accounting for 56.02% of total products[24] Environmental and Social Responsibility - The company reported a 26.3% decrease in particulate matter emissions and a 28.4% decrease in sulfur dioxide emissions compared to 2020[103] - The company completed 21 out of 28 ultra-low emission transformation projects, enhancing its environmental protection facilities[106] - The company maintained a 100% compliance rate for pollutant self-monitoring and supervision monitoring[103] - The company is committed to the "dual carbon" development strategy, aiming to become a green and low-carbon demonstration enterprise[112] Corporate Governance - The company held 2 shareholder meetings and 7 board meetings during the reporting period, ensuring compliance with decision-making processes and information disclosure requirements[73] - The company received an A rating for its 2021 information disclosure work from the Shanghai Stock Exchange, highlighting its commitment to transparency and investor relations[75] - The board consists of 9 members, including 3 independent directors, ensuring compliance with governance standards and enhancing decision-making rigor[75] - The company has established a complete business system and maintains independent operational capabilities, ensuring compliance with governance regulations[76] Financial Position and Assets - The company's total assets increased to approximately ¥29.26 billion, an increase from ¥27.85 billion in 2020, representing a growth of about 5.1%[158] - The company's cash and cash equivalents reached approximately ¥9.91 billion, up from ¥7.27 billion in the previous year, indicating a growth of approximately 36.0%[158] - The total liabilities of the company were approximately ¥8.71 billion, compared to ¥7.75 billion in the previous year, which is an increase of about 12.3%[160] - The company's total equity attributable to shareholders reached CNY 15,871,783,186.21, an increase from CNY 15,570,752,319.26 in 2020, showing a growth of 1.9%[164] Strategic Initiatives - The company is actively pursuing carbon neutrality initiatives, having developed a smart energy management platform and launched a carbon peak and carbon neutrality action plan[25] - The company aims to enhance competitiveness in the steel manufacturing industry while fostering the digital economy, particularly through investments in Internet Data Centers (IDC)[68] - The company plans to leverage its resources in both steel and digital economy sectors to optimize operational costs and enhance profitability[30] Legal and Regulatory Matters - The company faced a significant lawsuit regarding a sales contract dispute, with the court ruling in favor of the company, and the associated costs were borne by Hanggang Group as per their agreement[125] - The company has not reported any guarantees provided to shareholders, actual controllers, or related parties during the reporting period[139] - The company has not faced any delisting risks or bankruptcy restructuring issues during the reporting period[125]

2021 年第三季度报告 单位：元 币种：人民币 证券代码：600126 证券简称：杭钢股份 杭州钢铁股份有限公司 2021 年第三季度报告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述或者 重大遗漏，并对其内容的真实性、准确性和完整性承担个别及连带责任。 重要内容提示： 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真实、准确、完整， 不存在虚假记载、误导性陈述或重大遗漏，并承担个别和连带的法律责任。 公司负责人、主管会计工作负责人及会计机构负责人（会计主管人员）保证季度报告中财务 报表信息的真实、准确、完整。 第三季度财务报表是否经审计 □是 √否 一、 主要财务数据 (一)主要会计数据和财务指标 | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|----------|--------|----------|-------------------------------------------|----------------|--------|----------|----------- ...

Financial Performance - The company's operating revenue for the first half of 2021 reached ¥25,460,097,617.78, representing an increase of 89.79% compared to the same period last year[17]. - The net profit attributable to shareholders of the listed company was ¥985,507,205.61, a significant increase of 159.24% year-on-year[17]. - The net profit after deducting non-recurring gains and losses was ¥960,878,422.47, up 173.25% from the previous year[17]. - The basic earnings per share for the first half of 2021 was ¥0.29, reflecting a growth of 163.64% compared to the same period last year[18]. - The total assets of the company at the end of the reporting period were ¥29,981,447,272.25, an increase of 7.65% from the end of the previous year[17]. - The net cash flow from operating activities was ¥1,346,459,725.20, down 27.81% compared to the same period last year[17]. - The weighted average return on net assets was 4.85%, an increase of 2.90 percentage points year-on-year[18]. - The company's net assets attributable to shareholders at the end of the reporting period were ¥19,892,737,517.07, a slight decrease of 0.17% from the previous year[17]. - The investment income increased by 65.14% to ¥161,971,260.02, compared to ¥98,082,916.40 in the previous year, mainly due to the transfer of equity in a subsidiary[30]. - The company reported a significant increase in investment income, which reached ¥161,971,260.02 compared to ¥98,082,916.40 in the previous year, reflecting a growth of about 64.5%[82]. Production and Operations - The company produced 226.65 thousand tons of hot-rolled coils, with a total production of 210.77 thousand tons of molten iron and 54.09 thousand tons of coke during the reporting period[26]. - The proportion of high-quality specialty products reached 54.6%, an increase of 6.8 percentage points compared to the previous year[26]. - Operating costs rose to ¥23,780,531,902.18, reflecting an increase of 85.87% from ¥12,794,213,505.02 year-on-year, primarily due to rising commodity prices and expanded trading operations[31]. - Research and development expenses amounted to 339 million RMB, reflecting a year-on-year growth of 112.32%[26]. - The company has implemented 14 out of 8 ultra-low emission projects, with the green intelligent transformation of the No. 2 blast furnace scheduled for completion in Q4 2021[26]. Investments and Acquisitions - The company completed the acquisition of 100% equity in Hangzhou Ziheng Company and 51% equity in Ningbo Zida Logistics Company for a total of 95.81 million RMB[19]. - The company invested CNY 4.83 billion in equity investments, including 100% acquisition of a data company and 51% of a logistics company[37]. - The company also allocated CNY 6.52 billion for non-equity investments, focusing on technological upgrades and cloud computing projects[37]. - The company signed a land lease agreement with Hangang Group for 206,674 square meters of land for the Zhejiang Cloud Computing Data Center project, with annual rent for the northern land set at CNY 8.86 million[67]. Environmental and Safety Measures - The total nitrogen emissions decreased by 5.9% as part of the company's commitment to low-carbon development and environmental management[27]. - The company emphasizes safety production and environmental protection, implementing measures to mitigate risks associated with production safety and environmental compliance[43]. - The company has completed 14 out of 31 planned environmental protection projects, including 28 ultra-low emission transformation projects, with ongoing projects progressing as scheduled[48]. - The company has established a comprehensive pollution prevention facility, ensuring stable and efficient operation of environmental protection facilities, with regular inspections conducted[48]. Financial Position and Liabilities - The company's total liabilities reached ¥10,081,235,794.62 as of June 30, 2021, compared to ¥7,752,427,054.87 at the end of 2020, marking an increase of around 29.00%[77]. - The total equity attributable to shareholders was ¥19,892,737,517.07 as of June 30, 2021, slightly down from ¥19,927,397,023.73 at the end of 2020, showing a decrease of about 0.17%[77]. - The company's short-term borrowings increased to ¥180,000,000.00 as of June 30, 2021, from ¥50,000,000.00 at the end of 2020, reflecting a growth of 260.00%[76]. - The company has not provided any guarantees to related parties or entities with a debt ratio exceeding 70%[69]. Shareholder Information - The total number of shareholders as of the end of the reporting period was 54,299[70]. - The largest shareholder, Hangzhou Steel Group Co., Ltd., holds 1,527,508,156 shares, accounting for 45.23% of total shares[71]. - The company has not experienced any changes in its total share capital or share structure during the reporting period[70]. Compliance and Governance - The company has not faced any administrative penalties for environmental issues during the reporting period[52]. - The company has committed to avoiding direct or indirect competition with Hangzhou Iron & Steel Co., Ltd. and its subsidiaries, with measures in place to resolve any potential conflicts[55]. - The company has disclosed its daily related transactions in the 2021 annual report, ensuring transparency[61]. Accounting and Financial Reporting - The financial statements are prepared based on the assumption of going concern, with no significant doubts regarding the company's ability to continue operations for the next 12 months[103]. - The accounting policies comply with the requirements of the enterprise accounting standards, reflecting the company's financial position and operating results accurately[104]. - The company has not reported any significant changes in contract assets or impairment provisions during the reporting period[179].