重庆钢铁股份有限公司 关于召开 2023 年半年度业绩说明会的公告 证券代码：601005 证券简称：重庆钢铁 公告编号：2023-025 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： （网址：https://roadshow.sseinfo.com/） 会议召开方式：上证路演中心网络互动 投资者可于 2023 年 09 月 28 日（星期四）至 10 月 12 日（星期四） 16:00 前登录上证路演中心网站首页点击"提问预征集"栏目或通过公 司邮箱 ir_601005@baowugroup.com 进行提问，公司将在说明会上对投 资者普遍关注的问题进行回答。 重庆钢铁股份有限公司（以下简称"公司"）已于 2023 年 8 月 31 日发布公司 2023 年半年度报告，为便于广大投资者更全面深入地了解 公司 2023 年半年度经营成果、财务状况等，公司计划于 2023 年 10 月 13 日下午 14:00-15:00 举行 2023 年半年度业绩说明会，就投资者关心 的问题进行交流。 一、 说明会类型 会 ...

重 慶 鋼 鐵 股 份 有 限 公 司 Chongqing Iron & Steel Company Limited (H股股份代號：1053) （A股股份代號：601005) 2023 中 期 報 告 U重庆钢铁 第一節 釋義................... ω 第二節 公司簡介和主要財務指標. 4 第三節 管理層討論與分析 10 第四節 公司治理 29 第五節 環境與社會責任 32 第六節 重要事項 38 第七節 股份變動及股東情況 . 64 第八節 優先股相關情況 70 第九節 債券相關情況 . 71 第十節 財務報告 ........... 74 | --- | --- | |--------------|---------------------------------------------------------------------------------------------------------| | | | | | 載有公司現任負責人簽字和公司蓋章的半年報報告文本 | | | 載有公司負責人、主管會計工作負責人和會計機構負責人簽名並蓋章的半年度財務 會計報告 | | 備查文件 ...

Financial Performance - The company's operating revenue for the first half of 2023 was approximately CNY 20.99 billion, an increase of 16.53% compared to CNY 18.02 billion in the same period last year[8]. - The net profit attributable to shareholders of the listed company was a loss of approximately CNY 434.74 million, a decrease of 184.18% compared to a profit of CNY 516.42 million in the same period last year[8]. - The net cash flow from operating activities was approximately CNY 414.52 million, down 55.74% from CNY 936.51 million in the previous year[8]. - The total assets at the end of the reporting period were approximately CNY 37.95 billion, a decrease of 3.59% from CNY 39.36 billion at the end of the previous year[8]. - The total profit for the first half of 2023 was a loss of RMB 515 million, a decrease of RMB 1.15 billion year-on-year, primarily due to a 17.38% drop in average selling price of products[73]. - The cost of goods sold increased by 25.81% to RMB 21.13 billion, up from RMB 16.79 billion in the previous year, indicating rising operational costs[55]. - The company reported a significant increase in sales volume for rebar, with a growth rate of 226.52% compared to the previous year[12]. - The company sold 5.42 million tons of products, a 44.70% increase year-on-year, contributing to a revenue increase of RMB 7 billion despite lower prices[73]. Production and Sales - The sales volume of steel products in the first half of 2023 was 542.01 million tons, an increase of 44.70% compared to 374.58 million tons in the same period last year[12]. - The company's steel production in the first half of 2023 reached 5.36 million tons, a year-on-year increase of 1.3%[47]. - Steel exports increased significantly, with 4.358 million tons exported in the first half of 2023, a year-on-year growth of 31.3%[47]. - The average selling price of commodity billets was RMB 3,736 per ton, reflecting a year-on-year decrease of 17.38%[73]. - In the first half of 2023, the average selling price of steel products decreased significantly, with an overall decline of 17.38% compared to the same period in 2022, resulting in a revenue loss of RMB 3,690,116 thousand[76]. Operational Strategy - The company emphasizes cost reduction and efficiency improvement as part of its operational strategy[11]. - The company plans to continue its cost reduction initiatives, targeting a reduction of RMB 200 per ton of steel produced[73]. - The company aims to enhance its operational efficiency by implementing organizational reforms, optimizing human resources, and advancing technological innovation[86]. - The company is focusing on value creation and maintaining a "cash is king" philosophy while optimizing resource channels and marketing strategies to improve customer retention and regional market share[86]. Environmental and Compliance Efforts - The company has completed the environmental impact assessment for the upgrade of its raw material terminal project, ensuring compliance with environmental regulations[97]. - The company has installed 11 wastewater treatment facilities and 127 air pollution control facilities, with all pollution control measures operating normally and meeting discharge standards[97]. - The company is committed to advancing its "Yangtze River Protection" work plan and energy conservation initiatives, with specific projects underway to address waste gas, wastewater, and solid waste management[99]. - The company has established an environmental risk prevention system and conducted emergency drills in collaboration with local environmental authorities[118]. - There were no administrative penalties related to environmental issues during the reporting period[119]. Related Party Transactions - The total amount of related party transactions for purchasing goods and services was approximately CNY 7.72 billion, while sales of goods amounted to approximately CNY 4.37 billion[170]. - The company has committed to ensuring the independence of its operations and assets under the control of China Baowu, avoiding unnecessary transactions between the two entities[130]. - The company has established a service and supply agreement with China Baowu, ensuring fair and reasonable transaction terms[130]. - The company reported a non-operational fund occupation situation involving controlling shareholders and related parties, which is not applicable for the reporting period[151]. Awards and Recognition - The company has received multiple awards, including being ranked 348th in the Fortune China 500 list for 2023[11]. Challenges and Market Conditions - The company is facing significant challenges due to high global inflation, weakened economic growth, and intensified competition in the steel market, leading to a notable decline in overall industry profitability[86]. - The company has experienced fluctuations in steel prices and high import iron ore prices, which have impacted its operational performance[86]. Research and Development - Research and development expenses significantly decreased by 86.11% to RMB 14.56 million, down from RMB 104.83 million in the previous year[55]. - The company is actively working on new product development and market expansion strategies to enhance its competitive position[141]. Financial Management - The company did not declare any interim dividends for the six months ending June 30, 2023, due to accumulated undistributed profits remaining negative[183]. - The company has not reported any significant changes or progress in previously disclosed temporary announcements during the reporting period[161]. - The company has not reported any significant litigation or arbitration matters during the reporting period[169].

Financial Performance - Operating revenue for the first half of 2023 was CNY 20.99 billion, an increase of 16.53% year-on-year[4] - Net profit attributable to shareholders for the reporting period was CNY -434.74 million, a decline of 184.18% compared to the same period last year[4] - Basic earnings per share for the reporting period were CNY -0.05, a decrease of 183.33% from CNY 0.06 in the same period last year[4] - The company's net profit for the first half of 2023 was a loss of RMB 515 million, a decrease of RMB 1.15 billion year-on-year[15] - The net profit attributable to the parent company for the first half of 2023 was RMB (434,740,206.19), compared to RMB 516,416,390.18 in the same period of 2022, representing a decline of approximately 184%[32] - Total comprehensive income for the first half of 2023 was RMB (434,740,206.19), compared to RMB 516,416,390.18 in the first half of 2022, indicating a significant decrease[32] Assets and Liabilities - Total assets as of June 30, 2023, were CNY 37.95 billion, a decrease of 3.59% compared to the end of the previous year[4] - The company reported a total equity of RMB 20,909,066,001.41 as of June 30, 2023, down from RMB 21,341,917,700.36 at the end of 2022[30] - The total liabilities as of June 30, 2023, were RMB 17,042,303,959.20, a decrease from RMB 18,022,882,702.66 at the end of 2022[29] - The company’s long-term borrowings increased to RMB 4,019,245,100.00 as of June 30, 2023, compared to RMB 2,751,945,100.00 at the end of 2022, indicating a rise in debt financing[29] - The company’s total current liabilities decreased to RMB 11,572,430,182.78 as of June 30, 2023, from RMB 13,062,529,956.71 at the end of 2022[29] Cash Flow - Cash flow from operating activities was CNY 414.52 million, down 55.74% from CNY 936.51 million in the previous year[4] - The net cash flow from operating activities for the first half of 2023 was RMB 414,520,654.04, down from RMB 936,510,963.14 in the first half of 2022[35] - Cash inflows from operating activities in the first half of 2023 amounted to RMB 21,281,122,763.32, an increase from RMB 19,745,939,208.11 in the same period of 2022[35] - Cash outflows from operating activities in the first half of 2023 totaled RMB 20,866,602,109.28, compared to RMB 18,809,428,244.97 in the first half of 2022[35] - Cash flow from investment activities for the first half of 2023 was a net outflow of (340,443,005.21), compared to (1,841,168,179.60) in the same period of 2022, indicating a significant improvement[44] Revenue and Costs - The company's operating costs increased by 25.81% year-on-year, totaling RMB 21.13 billion[14] - The average selling price of commodity billets was RMB 3,736 per ton, a decrease of 17.38% compared to the previous year, resulting in a revenue reduction of RMB 3.69 billion[16] - The sales volume of commodity billets was 5.42 million tons, an increase of 44.70% year-on-year, contributing an additional RMB 7.00 billion in revenue[16] - The gross profit margin for the steel industry was -0.67% in the first half of 2023, a decrease of 7.49% compared to the previous year[20] - The company implemented a cost reduction plan aiming for a reduction of RMB 200 per ton of steel, achieving a cost reduction of RMB 1.18 billion in the process[15] Shareholder Information - The total number of shareholders as of the reporting period was 167,651[5] - The largest shareholder, Chongqing Changshou Iron & Steel Co., Ltd., held 23.51% of the shares[6] - The company did not declare any interim dividends for the first half of 2023 due to accumulated undistributed profits remaining negative[23] Research and Development - Research and development expenses for the first half of 2023 were RMB 14,557,677.64, significantly lower than RMB 104,831,842.92 in the same period of 2022, indicating a reduction in R&D investment[31] - Research and development expenses significantly decreased to RMB 14.56 million, down 86.1% from RMB 104.83 million in the first half of 2022[40] Financing Activities - The company raised RMB 1,600,000,000.00 from borrowings in the first half of 2023, compared to RMB 395,000,000.00 in the same period of 2022[37] - Net cash outflow from financing activities was (1,081,155,780.23) in the first half of 2023, compared to (2,253,404,676.26) in the same period of 2022, showing a reduction in cash burn[44]

证券代码：601005 股票简称：重庆钢铁 公告编号：2023-021 重庆钢铁股份有限公司 ChongqingIron&SteelCompanyLimited （在中华人民共和国注册成立的股份有限公司） 关于公司高级副总裁辞职的公告 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。 2023 年 8 月 14 日，重庆钢铁股份有限公司（简称"公司"）董事会收 到高级副总裁张永忠先生提交的书面辞职报告，由于工作调整，张永忠先生 辞去公司高级副总裁职务，其辞职后不再担任公司任何职务。张永忠先生确 认与公司董事会、监事会以及管理层均未出现任何意见分歧，亦无任何有关 辞任的其他事宜须提呈公司及股东注意。 根据相关法律法规及《重庆钢铁股份有限公司章程》等的规定，张永忠 先生的辞职报告自送达公司董事会之日起生效。 张永忠先生在任职期间恪尽职守、勤勉尽责，公司对张永忠先生任职期 间为公司发展所做出的贡献表示衷心感谢！ 特此公告。 重庆钢铁股份有限公司董事会 2023 年 8 月 15 日 ...

Financial Performance - In Q1 2023, Chongqing Steel reported a net loss of CNY 105,451,906.05, compared to a net profit of CNY 442,999,067.32 in the same period last year[10]. - The company's operating profit for Q1 2023 was -CNY 114,045,817.56, a significant decline from CNY 591,248,783.90 in Q1 2022[10]. - The company reported a total comprehensive loss of CNY 105,451,906.05 for Q1 2023, mirroring the net loss figure[10]. - The net profit for Q1 2023 was a loss of ¥122,269,851.32, compared to a profit of ¥391,769,667.61 in Q1 2022[57]. - The net profit attributable to shareholders for Q1 2023 was a loss of CNY 105,451,906.05, a decrease of 123.80% compared to the same period last year[75]. Revenue and Costs - Total operating revenue for Q1 2023 reached ¥10,470,409,086.22, an increase of 20.1% compared to ¥8,720,405,782.79 in Q1 2022[50]. - The company's operating revenue for Q1 2023 was CNY 10,470,409,086.22, representing a year-on-year increase of 20.07%[75]. - Total operating costs for Q1 2023 were ¥10,607,423,444.43, up from ¥8,195,033,135.10 in Q1 2022, reflecting a year-over-year increase of 29.5%[50]. - The company’s total operating costs for Q1 2023 were ¥10,652,107,907.40, up from ¥8,036,501,504.62 in Q1 2022[56]. Cash Flow - The net cash flow from operating activities for Q1 2023 was -1,027,469,422.83 RMB, a decrease compared to 278,512,003.46 RMB in Q1 2022[17]. - Cash inflow from operating activities totaled 9,592,778,468.97 RMB, up from 7,443,616,534.80 RMB in the same period last year, representing an increase of approximately 29%[17]. - Cash outflow from operating activities increased to 10,620,247,891.80 RMB, compared to 7,165,104,531.34 RMB in Q1 2022, marking a rise of about 48%[17]. - The company reported a net cash decrease of ¥2,080,268,309.47 in Q1 2023, compared to a decrease of ¥2,705,710,867.85 in Q4 2022, indicating a reduction in cash outflow[doc id='37']. Assets and Liabilities - Total assets at the end of Q1 2023 were 38,940,427,129.72 RMB, down 1.08% from 39,364,800,403.02 RMB at the end of the previous year[26]. - The company’s total liabilities decreased to 17,701,418,205.88 RMB from 18,022,882,702.66 RMB, indicating a reduction in financial obligations[34]. - The total liabilities decreased from ¥17,939,261,242.26 in the previous period to ¥17,644,437,223.82[54]. - The total assets as of March 31, 2023, were CNY 38,940,427,129.72, a slight decrease from CNY 39,364,800,403.02 at the end of 2022[63]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 168,546[22]. - The largest shareholder, Chongqing Changshou Steel Co., Ltd., held 2,096,981,600 shares, representing 23.51% of the total shares[22]. - The equity attributable to shareholders of the listed company decreased by 0.48% to 21,239,008,923.84 RMB from 21,341,917,700.36 RMB at the end of the previous year[26]. Research and Development - Research and development expenses for Q1 2023 were CNY 7,405,741.15, indicating ongoing investment in innovation despite financial losses[10]. - Research and development expenses for Q1 2023 were ¥7,405,741.15, indicating ongoing investment in innovation[56]. Financial Expenses and Tax - Financial expenses for Q1 2023 amounted to CNY 53,747,225.27, down from CNY 77,075,937.02 in Q1 2022[10]. - The company's cash and cash equivalents at the end of the period were ¥1,857,324,578.40, down from ¥3,126,340,652.26 in the previous year[59]. - Chongqing Steel's tax expenses for Q1 2023 were CNY 33,637,814.07, compared to CNY 35,826,337.06 in the previous year[10].

Financial Performance - The company's operating revenue for Q1 2023 was CNY 10,470,409,086.22, representing a year-on-year increase of 20.07%[2] - The net profit attributable to shareholders of the listed company was a loss of CNY 105,451,906.05, a decrease of 123.80% compared to the same period last year[2] - The net profit attributable to shareholders after deducting non-recurring gains and losses was a loss of CNY 113,661,336.96, down 124.86% year-on-year[2] - The basic and diluted earnings per share were both CNY -0.01, reflecting a decrease of 120.00%[2] - Net profit for Q1 2023 was -¥105,451,906.05, compared to a net profit of ¥442,999,067.32 in Q1 2022, indicating a significant decline[23] - The total profit for Q1 2023 was -¥126,605,402.16, a stark contrast to a profit of ¥573,586,017.30 in Q1 2022[23] - The company reported a total operating profit of -130,817,018.26 CNY in Q1 2023, compared to a profit of 540,168,549.02 CNY in Q1 2022, indicating a significant decline[44] - Net profit for Q1 2023 was -122,269,851.32 CNY, a sharp decrease from 391,769,667.61 CNY in Q1 2022, reflecting a negative performance trend[44] - The total comprehensive income for Q1 2023 was -122,269,851.32 CNY, compared to 391,769,667.61 CNY in Q1 2022, indicating a substantial decline in overall financial performance[46] Cash Flow and Liquidity - The net cash flow from operating activities was a negative CNY 1,027,469,422.83, a decline of 468.91% compared to the previous year[2] - Cash flow from operating activities in Q1 2023 was -¥1,027,469,422.83, a decrease from a positive cash flow of ¥278,512,003.46 in Q1 2022[32] - The total cash inflow from operating activities in Q1 2023 was ¥9,592,778,468.97, compared to ¥7,443,616,534.80 in Q1 2022, marking a 29.4% increase[31] - Cash outflows from operating activities increased to 10,605,606,863.02 CNY in Q1 2023, compared to 7,270,206,892.12 CNY in Q1 2022, resulting in a net cash flow from operating activities of -1,026,934,859.46 CNY[48] - The company's cash and cash equivalents at the end of Q1 2023 were CNY 1,857,664,523.81, down from CNY 3,126,527,264.69 at the end of Q1 2022[35] - The company's cash and cash equivalents at the end of Q1 2023 were 1,857,324,578.40 CNY, down from 3,126,340,652.26 CNY at the end of Q1 2022, indicating a decrease in liquidity[51] Assets and Liabilities - Total assets at the end of the reporting period were CNY 38,940,427,129.72, a decrease of 1.08% from the end of the previous year[2] - Total current assets amounted to CNY 8,211,832,194.81, a decrease of 3.56% from CNY 8,514,222,407.34 on December 31, 2022[13] - Total non-current assets were CNY 30,728,594,934.91, slightly down from CNY 30,850,577,995.68, a decrease of 0.39%[14] - Total liabilities decreased to CNY 17,701,418,205.88 from CNY 18,022,882,702.66, a reduction of 1.78%[17] - The total assets as of March 31, 2023, were CNY 38,678,414,964.17, a decrease from CNY 39,094,446,785.81 at the end of 2022[41] - The total liabilities as of March 31, 2023, were CNY 17,644,437,223.82, slightly down from CNY 17,939,261,242.26 at the end of 2022[41] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 168,546[8] - The largest shareholder, Chongqing Changshou Iron & Steel Co., Ltd., held 2,096,981,600 shares, accounting for 23.51% of the total shares[9] - The top shareholder, Chongqing Changshou Steel Co., Ltd., holds 2,096,981,600 shares, representing a significant portion of the company's equity[10] - The company has a total of 10 major shareholders, with no reported related party transactions among them, except for Chongqing Changshou Steel Co., Ltd. and Baowu Group Zhongnan Steel Co., Ltd., which are under common control[11] Operating Costs and Expenses - Total operating costs for Q1 2023 were ¥10,607,423,444.43, up 29.5% from ¥8,195,033,135.10 in Q1 2022[21] - Research and development expenses for Q1 2023 amounted to ¥7,405,741.15, reflecting ongoing investment in innovation[21] - The company incurred interest expenses of ¥71,900,486.30 in Q1 2023, down from ¥83,217,052.33 in Q1 2022, indicating improved cost management[21] - The R&D expenses for Q1 2023 were CNY 7,405,741.15, reflecting ongoing investment in innovation[43] - The company invested 109,476,769.10 CNY in fixed assets and other long-term assets in Q1 2023, a decrease from 529,314,742.95 CNY in Q1 2022, indicating a reduction in capital expenditure[49]

Financial Performance - In 2022, the company reported a net loss of RMB 1.04 billion, a decrease of 144.82% compared to a net profit of RMB 2.27 billion in 2021[12]. - Operating revenue for 2022 was RMB 36.56 billion, down 8.25% from RMB 39.85 billion in 2021[12]. - The net cash flow from operating activities decreased by 73.85%, totaling RMB 1.47 billion compared to RMB 5.62 billion in 2021[12]. - The total assets at the end of 2022 were RMB 39.36 billion, a decline of 8.45% from RMB 42.99 billion at the end of 2021[12]. - The company's net assets attributable to shareholders decreased by 4.62%, amounting to RMB 21.34 billion at the end of 2022[12]. - Basic earnings per share for 2022 was -0.11 RMB, a decrease of 142.31% compared to 0.26 RMB in 2021[14]. - The weighted average return on equity decreased to -4.66% in 2022, down 15.39 percentage points from 10.73% in 2021[14]. - Total revenue for 2022 was 36,561,531 thousand RMB, a decline from 39,849,418 thousand RMB in 2021[25]. - The total revenue for the company was RMB 36.56 billion, a decrease of 8.25% year-on-year, while the total profit amounted to RMB 1.20 billion, reflecting a significant decline of 153.12%[46]. Operational Highlights - The company achieved record production levels for steel and materials, marking a significant operational milestone[26]. - The company achieved a steel production of 7.8735 million tons, a historical high, with the cost of slab steel production dropping to RMB 488 per ton in November, setting a new record[30]. - The steel rolling output reached 8.33 million tons, an increase of 17.82% year-on-year, marking a historical peak[30]. - The company’s production capacity was enhanced to 12 million tons, following the completion of structural adjustments and supporting projects in 2022[32]. - The company achieved production volumes of 7.23 million tons of iron, 7.87 million tons of steel, and 8.34 million tons of finished products, representing year-on-year increases of 7.20%, 10.65%, and 16.57% respectively, with steel and finished product output reaching historical highs[46]. Strategic Initiatives - The company aims to enhance its market position through strategic initiatives, although specific future plans were not detailed in the report[2]. - The company aims to become a leader in the steel industry in Southwest China, focusing on cost reduction and efficiency improvements[26]. - The company plans to continue its high-quality development strategy amidst challenging external conditions[26]. - The company is positioned to leverage its geographical advantages in Chongqing, benefiting from the "Western Development" and "Belt and Road" initiatives, with strong local demand for steel products[43]. - The company aims to become a leading steel enterprise in Southwest China, targeting a production capacity of over 10 million tons of high-quality green steel[40]. Environmental and Sustainability Efforts - The company is committed to green manufacturing and smart manufacturing, initiating a new round of development planning[40]. - The company implemented 8 energy-saving and carbon reduction projects, achieving a coal saving of 51,700 tons per year, with total energy-saving and carbon reduction cost savings of RMB 176 million in 2022[28]. - The comprehensive utilization rate of solid waste reached 99.9%, with a solid waste non-discharge rate of 99.92%[28]. - The company received the "Chongqing Green Factory" title in 2022, with an annual green development index of 74 points, an increase of 8 points year-on-year[28]. - The company is focused on enhancing its environmental governance and ecological civilization construction[118]. Governance and Compliance - The governance structure of the company adheres to relevant laws and regulations, ensuring transparency and accountability in operations[132]. - The company has established a comprehensive internal control system to support its governance practices and enhance shareholder value[133]. - The board of directors consists of 9 members, including 3 independent directors and 2 independent directors with accounting expertise[137]. - The company has maintained a high standard of information disclosure, with no instances of undisclosed information during the reporting period[140]. - The company has adhered to the corporate governance principles outlined in the Hong Kong Stock Exchange's Corporate Governance Code, reflecting its commitment to transparency and accountability[141]. Risk Management - The company emphasizes the importance of risk awareness in its forward-looking statements, urging investors to exercise caution[2]. - The company faces risks related to raw material price fluctuations, particularly with imported iron ore, which has increased cost control pressures since 2021[128]. - Environmental regulations may limit the company's steel production capacity, prompting a need for accelerated transformation and upgrades in 2023[127]. - The company emphasizes the importance of risk management and maintaining a flexible supply chain to adapt to market changes[127]. Research and Development - Research and development expenses increased by 109.81% to RMB 24.76 million, attributed to the rise in R&D projects[48]. - Total R&D investment amounted to RMB 1,359,520 thousand, constituting 3.72% of operating revenue[79]. - The number of R&D personnel was 822, making up 13.23% of the total workforce[81].

Financial Performance - The company reported a net loss of RMB 1.038 billion for the year 2022, with retained earnings at RMB -7.651 billion as of the end of 2022, leading to no profit distribution or capital reserve increase for the year [2]. - Net profit attributable to shareholders was a loss of CNY 1,019,409,000 in 2022, a decline of 144.82% compared to a profit of CNY 2,274,395,000 in 2021 [9]. - Operating revenue fell by 8.25% to CNY 36,561,531,000 in 2022 from CNY 39,849,418,000 in 2021 [9]. - The company reported a significant decline in EBITDA to total debt ratio, dropping to 0.06 in 2022 from 0.37 in 2021, a decrease of 83.78% [18]. - The total operating revenue was RMB 36.562 billion, a decrease of 8.25% year-on-year, while the total profit was RMB -1.202 billion, a decline of 153.12% [21]. - The company reported a net loss attributable to shareholders of RMB 1,019,409,354.34 for 2022, compared to a profit of RMB 2,274,394,561.62 in 2021, representing a significant decline [68]. - Basic and diluted earnings per share for 2022 were both RMB (0.11), down from RMB 0.26 in 2021, indicating a negative performance shift [68]. - The company’s gross profit margin was negative in 2022, with operating costs exceeding operating revenue, leading to an operating loss of RMB 1.166 billion [67]. Production and Operations - The company operates in the manufacturing sector, primarily producing and selling hot-rolled sheets, medium and thick plates, rebar, wire rods, steel billets, and by-products, with a diverse production line including a 4100mm wide plate production line and a 1780mm hot-rolled thin plate production line [5]. - The company achieved iron, steel, and commodity billet production of 7.23 million tons, 7.87 million tons, and 8.34 million tons respectively, with year-on-year growth of 7.20%, 10.65%, and 16.57% [20]. - The company reported a significant increase in sales volume for various products, including a 23.07% increase in plate sales to 2.5923 million tons [26]. - The main product, semi-finished products, generated operating revenue of RMB 33,931,976 thousand, with a gross margin decrease of 11.37 percentage points to 15.23% [28]. - Total production of plates was 256.44 million tons, with a sales volume increase of 23.06% to 259.23 million tons [30]. Market and Industry Context - The steel industry faced an oversupply situation in 2022, with prices declining due to weak supply and demand dynamics, while raw material prices remained historically high, squeezing profit margins [7]. - In 2022, the company ranked 316th in the "Fortune" China 500 list and 289th in the "2022 China Manufacturing Enterprises 500" list, indicating its significant market presence [6]. - The company has a strong market presence in the southwestern region of China, with its products widely used in various sectors such as railways, airports, and urban high-rise buildings [5]. - The Southwest region accounted for operating revenue of RMB 27,946,751 thousand, with a gross margin decrease of 10.80 percentage points to 27.36% [29]. Financial Position and Assets - Total assets decreased by 8.45% to CNY 39,364,800,000 in 2022 from CNY 42,995,956,000 in 2021 [9]. - The company's total assets as of December 31, 2022, amounted to RMB 39.365 billion, a decrease from RMB 42.996 billion at the end of 2021 [66]. - The company’s total liabilities as of December 31, 2022, were RMB 18.023 billion, down from RMB 20.621 billion in 2021, indicating a reduction in overall debt levels [65]. - The company’s cash and cash equivalents decreased to RMB 3,996 billion in 2022 from RMB 6,411 billion in 2021, highlighting liquidity challenges [62]. - The company reported a significant increase in accounts receivable, which rose to RMB 181,294,862.78 in 2022 from RMB 69,401,651.93 in 2021, an increase of approximately 161.5% [74]. Research and Development - Research and development expenses increased by 109.81% to RMB 24.764 million due to the rise in R&D projects [21]. - The company employed 822 R&D personnel, making up 13.23% of the total workforce [37]. - Research and development expenses increased to RMB 21,736,831.31 in 2022, up from RMB 11,802,669.84 in 2021, indicating an increase of approximately 83.5% [78]. Strategic Goals and Initiatives - The company aims to enhance production efficiency and reduce costs by implementing a management philosophy focused on comprehensive benchmarking and extreme consumption limits [7]. - The company is committed to green and intelligent manufacturing, with a goal to build a high-quality green steel enterprise with an annual capacity exceeding ten million tons [6]. - The company plans to continue cost reduction initiatives and improve technical economic indicators to enhance profitability [23]. - The company aims to enhance its profitability by increasing the production of high value-added products, aligning product structure with downstream demand [48]. - The company is committed to ecological construction and aims to create a green low-carbon steel enterprise [50]. Challenges and Risks - The company faces significant risks from raw material price fluctuations, particularly due to reliance on imported iron ore, which has seen international prices rise sharply since 2021, increasing cost control pressures [51]. - The company faced challenges from a soft steel market and rising coal prices, prompting a focus on operational efficiency [23]. - The company will focus on cost reduction and efficiency improvement to strengthen its competitiveness in a challenging steel industry environment [50].