江苏沙钢股份有限公司 2020 年第三季度报告全文 江苏沙钢股份有限公司 2020 年第三季度报告 2020 年 10 月 1 江苏沙钢股份有限公司 2020 年第三季度报告全文 第一节 重要提示 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、误导性陈述或者重大遗漏，并承担个别和 连带的法律责任。 所有董事均已出席了审议本次季报的董事会会议。 公司负责人何春生、主管会计工作负责人钱宇及会计机构负责人(会计主管 人员)张艳玲声明：保证季度报告中财务报表的真实、准确、完整。 2 江苏沙钢股份有限公司 2020 年第三季度报告全文 第二节 公司基本情况 一、主要会计数据和财务指标 公司是否需追溯调整或重述以前年度会计数据 | --- | --- | --- | --- | --- | |-----------------------------------------------------|--------------------------------|-------------------------|-------------------|-------- ...

Financial Performance - The company's operating revenue for the first half of 2020 was CNY 6,477,390,367.12, representing a 3.89% increase compared to CNY 6,234,774,794.01 in the same period last year[17]. - The net profit attributable to shareholders was CNY 252,289,713.28, a decrease of 11.45% from CNY 284,917,031.95 year-on-year[17]. - The net cash flow from operating activities was CNY 875,122,668.94, a significant improvement from a negative cash flow of CNY -61,163,742.06 in the previous year[17]. - Total assets increased by 4.89% to CNY 12,075,566,509.69 from CNY 11,513,008,886.20 at the end of the previous year[17]. - The weighted average return on net assets decreased to 5.01% from 6.20% in the previous year[17]. - The net profit after deducting non-recurring gains and losses was CNY 196,557,810.82, down 11.67% from CNY 222,518,191.74 year-on-year[17]. - Revenue for the reporting period was 6.477 billion yuan, representing a year-on-year growth of 3.89%[38]. - The company reported a significant increase in revenue from the South China region, which rose by 72.85% to CNY 563,795,212.51[40]. - The gross profit margin for the steel industry was 11.66%, down from 12.09% year-on-year[41]. - The company reported a total profit of CNY 605,693,781.90 for the first half of 2020, compared to CNY 746,722,670.03 in the first half of 2019, indicating a decrease of about 18.9%[158]. Production and Operations - The company produced approximately 3.2 million tons of special steel annually, with products sold in both domestic and international markets[25]. - The company achieved a steel production of 1.7566 million tons, a year-on-year increase of 12.26%[36]. - The company implemented cost control measures resulting in a total cost reduction of approximately 6.1 million yuan through various initiatives[28]. - Inventory was reduced from a peak of 370,000 tons in February to 240,000 tons by the end of June, achieving a decrease of 130,000 tons[28]. - Research and development investment increased by 55.58% year-on-year, totaling approximately 26.83 million yuan[38]. - The company completed 32 technical reform projects, with 8 projects already finished during the reporting period[29]. - Quality management efforts led to a 31.09% decrease in quality dispute losses and a 38.14% reduction in ton steel losses year-on-year[29]. Strategic Initiatives - The company is actively pursuing a major asset restructuring to transition from a single specialty steel business to a dual business model including data centers, enhancing future growth prospects[35]. - The company plans to enhance product structure and innovate technology to maintain market competitiveness in the special steel sector[59]. - The company is focusing on enhancing its procurement strategies to optimize costs and improve efficiency in the supply chain[81]. - The company is exploring potential mergers and acquisitions to enhance its supply chain efficiency, with a budget of 1 billion CNY set aside for this purpose[99]. - The company has plans for market expansion and new product development, focusing on enhancing its steel production capabilities[76]. Environmental and Compliance - The company emphasizes compliance with new environmental regulations to mitigate potential risks associated with environmental standards[60]. - The company has established an environmental protection committee to oversee compliance and ensure efficient operation of pollution control facilities[105]. - The company reported a total COD discharge of 22.7 tons, with a maximum allowable limit of 150 tons, indicating no exceedance of discharge standards[104]. - The nitrogen oxide emissions were recorded at 680.5 tons, significantly below the allowable limit of 6,922.74 tons[105]. - No major environmental issues were reported during the reporting period, reflecting the company's commitment to environmental management[105]. Shareholder and Equity Information - The company plans not to distribute cash dividends or issue bonus shares for the reporting period[6]. - The company approved a share repurchase plan with a maximum amount of RMB 32,638.15 million and a repurchase price not exceeding RMB 14.79 per share[120]. - As of now, the company has repurchased a total of 4,479,627 shares, accounting for 0.20% of the total share capital, with a maximum purchase price of RMB 13.57 per share and a minimum of RMB 12.58 per share, totaling RMB 57.31 million[120]. - The total number of common shareholders at the end of the reporting period is 70,116[129]. - Jiangsu Shagang Group holds 26.64% of shares, totaling 587,871,726 shares[130]. Financial Position and Assets - The company's cash and cash equivalents at the end of the reporting period were CNY 218,695,914.50, representing 1.81% of total assets[45]. - The company's fixed assets increased to CNY 3,909,200,561.00, accounting for 32.37% of total assets, up from 30.45% year-on-year[45]. - Total liabilities rose to CNY 4,648,903,944.54 from CNY 3,997,653,255.35, marking an increase of around 16.3%[150]. - The company's equity decreased slightly to CNY 7,426,662,565.15 from CNY 7,515,355,630.85, a decline of about 1.2%[151]. - The total investment in financial assets amounted to approximately 4.4 billion, with a fair value change of 30.39 million during the reporting period[50]. Risks and Challenges - The company is facing risks from rising raw material prices, which could impact operating costs and overall performance[60]. - The company is undergoing a major asset restructuring to diversify its business operations, which poses management and operational risks[61]. - The company has not engaged in any derivative investments during the reporting period, reflecting a conservative investment strategy[52]. Future Outlook - The future outlook remains positive, with management projecting a steady growth trajectory in the upcoming fiscal year[101]. - The company plans to expand its market presence by increasing its investment in new technologies and product development[100]. - The company has set a performance guidance for the next quarter, aiming for a revenue growth of 10%[100].

Financial Performance - The company's operating revenue for Q1 2020 was ¥2,748,257,209.38, a decrease of 5.39% compared to ¥2,904,718,930.09 in the same period last year[10] - Net profit attributable to shareholders was ¥98,274,278.72, down 1.99% from ¥100,266,576.90 year-on-year[10] - The net profit after deducting non-recurring gains and losses was ¥70,847,726.38, reflecting a decline of 13.41% from ¥81,821,819.99 in the previous year[10] - Basic earnings per share were ¥0.0445, down 1.98% from ¥0.0454 in the same period last year[10] - The weighted average return on equity was 1.96%, a decrease of 0.26% from 2.22% in the previous year[10] - The company reported a total investment in domestic stocks of ¥67,900,000 with a fair value of ¥149,184,000 at the beginning of the period[33] - The company reported a net profit for the current period of ¥182,960,637.04, a decrease of 7.43% compared to ¥196,820,636.33 in the previous period[76] - The total operating profit for the current period was ¥21,376,995.90, a significant recovery from a loss of -¥3,174,065.54 in the previous period[80] - The net profit for the current period was ¥16,141,715.17, compared to a net loss of -¥3,174,065.54 in the previous period, indicating a turnaround in profitability[80] Cash Flow - The net cash flow from operating activities was ¥202,890,523.02, a decrease of 2.80% compared to ¥208,735,135.69 in the same period last year[10] - Net cash flow from operating activities decreased by 2.80% to ¥202,890,523.02, primarily due to increased cash payments for goods and services[25] - The net cash flow from investment activities dropped by 153.62% to -¥204,431,877.08, driven by increased outflows for purchasing financial products[25] - The cash inflow from investment activities totaled ¥5,017,348,489.63, compared to ¥3,324,569,923.81 in the previous period, marking a significant increase of about 51%[87] - The net cash flow from investment activities was -¥204,431,877.08, a decline from ¥381,242,615.86 in the previous period, indicating a decrease of approximately 153%[87] - The cash flow from financing activities resulted in a net outflow of -¥66,077,366.67, an improvement from -¥568,610,758.39 in the previous period[87] Assets and Liabilities - Total assets at the end of the reporting period were ¥11,896,488,736.78, an increase of 3.33% from ¥11,513,008,886.20 at the end of the previous year[10] - Total liabilities increased to CNY 4,199,134,334.72 from CNY 3,997,653,255.35, representing an increase of approximately 5.03%[63] - The company's equity attributable to shareholders reached CNY 5,065,831,915.12, compared to CNY 4,968,019,070.92, reflecting an increase of about 1.99%[63] - Short-term borrowings decreased by 30.92% to ¥143,000,000.00 as the company repaid bank loans[25] - Accounts receivable decreased by 70.64% to ¥15,870,362.37 due to the recovery of prior debts[25] Research and Development - Research and development expenses rose by 88.59% to ¥12,512,624.16, indicating increased investment in innovation[25] - Research and development expenses rose to ¥12,512,624.16, an increase of 88.73% from ¥6,634,856.61 in the previous period[74] - The company reported a decrease in research and development expenses to ¥2,209,298.68 from ¥3,887,108.39 in the previous period, representing a reduction of approximately 43%[80] Other Income and Expenses - Other income surged by 189.93% to ¥4,985,318.64, reflecting an increase in government grants received[25] - Tax expenses decreased to ¥48,783,052.13, down 30.67% from ¥70,294,333.63 in the previous period[76] - Other comprehensive income after tax was -¥7,862.41, compared to ¥43,958,575.56 in the previous period, indicating a significant decline[76] Investment Activities - The company has a total of ¥445,540,000 in entrusted financial management, with an outstanding balance of ¥387,091,000[35] - The company has invested ¥434,540,000 in bank financial products, yielding an annualized return of 4.25%[35] - The company holds ¥10,000,000 in trust financial products, with a maturity balance of ¥1,000,000[35] - The company’s total fair value change in securities investment for the period is ¥0[33] - The company has not made any purchases or sales of securities during the reporting period[33] Corporate Governance - The company has been actively pursuing a major asset restructuring plan since 2016, with ongoing updates provided to the market[28] - The company has no overdue commitments from actual controllers, shareholders, or related parties during the reporting period[32] - There were no violations regarding external guarantees during the reporting period[52] - The company did not have any non-operating fund occupation by controlling shareholders or related parties during the reporting period[53] - No research, communication, or interview activities were conducted during the reporting period[54]

Financial Performance - The company's operating revenue for 2019 was ¥13,474,565,780.88, a decrease of 8.41% compared to ¥14,712,449,109.37 in 2018[25] - The net profit attributable to shareholders for 2019 was ¥528,863,504.13, down 55.07% from ¥1,177,037,447.93 in the previous year[25] - The net profit after deducting non-recurring gains and losses was ¥395,342,956.90, a decline of 61.90% compared to ¥1,037,652,197.38 in 2018[25] - The net cash flow from operating activities was ¥304,024,644.69, which represents an 88.12% decrease from ¥2,560,178,917.48 in 2018[25] - Basic earnings per share for 2019 were ¥0.24, down 54.72% from ¥0.53 in 2018[25] - The total assets at the end of 2019 were ¥11,513,008,886.20, a slight decrease of 0.07% from ¥11,521,482,315.83 at the end of 2018[25] - The net assets attributable to shareholders increased by 11.37% to ¥4,968,019,070.92 from ¥4,460,867,040.23 in 2018[25] - The weighted average return on net assets was 11.23%, down 18.64% from 29.87% in 2018[25] Revenue and Sales - Main business revenue accounted for 90.56% of total revenue, totaling ¥12,202,350,503.39, down 5.93% from ¥12,971,320,312.25 in 2018[51] - Revenue from high-quality steel was ¥5,880,452,140.84, representing 43.64% of total revenue, with a decline of 8.82% year-over-year[51] - The company sold 3,288,580 tons of steel in 2019, an increase of 1.86% from 3,228,650 tons in 2018[56] - The company maintained a steel sales volume of 3.2886 million tons, reflecting a year-on-year growth of 1.86%[48] - Revenue from foreign markets decreased by 52.67% to ¥234,884,789.21, down from ¥496,312,000.59 in 2018[51] Cost and Expenses - The cost of raw materials was ¥6,380,093,611.80, making up 58.39% of total operating costs, an increase of 2.75% from the previous year[60] - The company’s employee compensation costs increased to ¥267,536,492.39, representing 2.45% of total operating costs, up from 2.20% in 2018[60] - Research and development expenses increased by 5.20% to ¥60,098,466.06 compared to the previous year[70] - The company reported a gross margin of 10.19% in the steel industry, down 5.46% from the previous year[55] Production and Operations - The company produced approximately 3.2 million tons of special steel in 2019, maintaining a strong market presence both domestically and internationally[39] - The production of iron and steel increased by 1.65% and 2.65% respectively, demonstrating operational efficiency improvements[41] - In 2019, the company achieved a steel production volume of 336.25 million tons, a year-on-year increase of 2.65%[48] - Fixed assets increased by 8.33% compared to the beginning of the year, primarily due to the completion of construction projects[40] Strategic Initiatives - The company identified 276 cost-reduction projects in 2019, achieving a total cost reduction of ¥435 million, exceeding the annual target by 45%[41] - The company’s investment in new technology and innovation has been a key focus, contributing to enhanced production capabilities and efficiency[41] - The company plans to enhance its core competitiveness through restructuring, optimizing product structure, and promoting intelligent production[95] - The company intends to strengthen its steel business through mergers and acquisitions and other collaborations to enhance its industry influence[98] Environmental and Social Responsibility - The company implemented various environmental protection projects, improving its environmental management systems and achieving zero major safety incidents in 2019[185] - The company focused on clean production and energy-saving processes, aligning with national environmental standards[185] - The company actively participated in social welfare activities, enhancing its corporate image and community relations[185] - The company provided economic assistance of 600,000 RMB to employees in need due to illness or disasters in 2019[185] Challenges and Risks - The company anticipates challenges in the steel industry due to overcapacity and increased competition, alongside rising costs for raw materials and labor[95] - The company faces market competition risks, particularly from the shift of general steel enterprises towards special steel products[101] - The company is at risk from rising raw material prices, which significantly impact production costs[101] Shareholder Returns - The company plans to distribute a cash dividend of ¥1 per 10 shares to all shareholders, totaling ¥2,206,771,772[8] - The company proposed a cash dividend of CNY 1.00 per 10 shares (including tax), totaling CNY 220,677,177.20 for 2019, which represents 41.73% of the net profit attributable to shareholders[110] - The cash dividend for 2019 accounted for 100% of the total profit distribution amount[111] Accounting and Compliance - The company implemented changes in accounting policies effective from January 1, 2019, due to new financial instrument standards, impacting the classification and measurement of financial assets[118] - The company did not engage in any significant equity or asset sales during the reporting period[90][91] - The company reported no major litigation or arbitration matters during the reporting period[129] - The company did not face any penalties or corrective actions during the reporting period[130]

Financial Performance - Operating revenue for the reporting period was approximately ¥3.69 billion, down 2.38% year-on-year, and down 9.89% year-to-date[10] - Net profit attributable to shareholders of the listed company was approximately ¥85.37 million, a decrease of 75.35% year-on-year, and down 62.73% year-to-date[10] - Basic earnings per share were ¥0.0387, a decrease of 75.35% year-on-year[10] - Total profit for the first nine months decreased by 64.37% to CNY 905.11 million, primarily due to falling steel prices and rising raw material costs[26] - Net profit for the current period was ¥699,965,466.35, down 63.7% from ¥1,925,702,828.18 in the previous period[89] - The profit attributable to the parent company's shareholders was ¥370,288,679.22, a decrease of 62.7% from ¥993,456,843.19[89] - The total comprehensive income for the quarter was CNY 90,319,603.29, down from CNY 680,309,332.32 in the same period last year[76] Assets and Liabilities - Total assets at the end of the reporting period were approximately ¥11.30 billion, a decrease of 1.96% compared to the end of the previous year[10] - Total current assets decreased from ¥7,088,281,202.82 to ¥6,783,368,898.82, a decline of approximately 4.3%[52] - Total liabilities increased from ¥3,990,805,455.69 to ¥4,047,657,638.03, an increase of approximately 1.4%[55] - Total equity decreased from ¥7,530,676,860.14 to ¥7,247,734,768.75, a decline of about 3.8%[58] - The total assets increased to ¥11,521,482,315.83, reflecting a change of ¥39,877,792.88[153] Cash Flow - Net cash flow from operating activities was approximately ¥255.84 million, a decrease of 63.81% year-on-year, and down 89.77% year-to-date[10] - The net cash flow from operating activities decreased by CNY 1.70 billion compared to the same period last year, mainly due to reduced cash inflow from sales[26] - Cash inflow from operating activities was ¥8,498,696,687.40, compared to ¥7,639,718,243.84 in the previous period, marking an increase of about 11.3%[129] - Cash outflow from operating activities totaled ¥8,304,020,778.92, up from ¥5,736,920,185.50, which is an increase of approximately 45%[129] - The cash flow from investment activities showed a net inflow of ¥384,178,824.41, a recovery from a net outflow of ¥1,206,906,380.15 in the previous period[135] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 54,559[14] - The largest shareholder, Jiangsu Shagang Group Co., Ltd., held 26.64% of the shares, totaling approximately 587.87 million shares[14] Research and Development - R&D expenses surged by 740.35% to CNY 33.76 million, indicating a significant increase in research investment[26] - Research and development expenses rose significantly to ¥33,758,519.40, compared to ¥4,017,177.32 in the previous period, marking an increase of 740.5%[86] Tax and Other Expenses - Tax expenses decreased by 66.63% to CNY 205.15 million, corresponding to the decline in profits[26] - Tax expenses for the current period were ¥205,147,547.13, down from ¥614,736,387.73, a decrease of 66.7%[89] Investment Income - The company reported non-operating income of approximately ¥121.96 million from financial assets and derivatives[10] - Investment income increased by 28.52% to CNY 107.24 million, driven by higher returns from financial products[26] - The company recorded an investment income of ¥18,091,993.26, significantly higher than ¥5,180,570.50 in the previous period, an increase of 248.5%[86]

Financial Performance - The company's operating revenue for the first half of 2019 was ¥6,234,774,794.01, a decrease of 13.82% compared to the same period last year[23]. - The net profit attributable to shareholders of the listed company was ¥284,917,031.95, down 55.97% year-on-year[23]. - The net profit after deducting non-recurring gains and losses was ¥222,518,191.74, a decline of 59.27% compared to the previous year[23]. - The net cash flow from operating activities was negative at ¥61,163,742.06, a decrease of 105.11% compared to the same period last year[23]. - Basic earnings per share were ¥0.1291, down 55.97% from ¥0.2932 in the same period last year[23]. - The company's operating revenue for the reporting period was ¥6,234,774,794.01, a decrease of 13.82% compared to ¥7,234,988,976.74 in the previous year[47]. - The cost of goods sold was ¥5,380,505,854.55, down by 2.51% from ¥5,518,770,017.34 year-on-year[47]. - The company reported a net cash outflow of ¥87,219,324.44, compared to a net outflow of ¥115,499,682.83 in the previous year[50]. - The company reported a net profit of 560,033,712.55 RMB for the first half of 2019, with a significant decrease of 63.76% compared to the same period in 2018[75]. - The expected net profit for the first nine months of 2019 is projected to be between 36,000,000 and 54,000,000 RMB, indicating a decline of over 50% year-on-year[76]. Assets and Liabilities - Total assets at the end of the reporting period were ¥11,419,875,696.37, a decrease of 0.88% from the end of the previous year[23]. - The total assets of the company decreased to RMB 11,419,875,696.37 from RMB 11,521,482,315.83, a reduction of approximately 0.9%[193]. - The total current assets as of June 30, 2019, amounted to RMB 6,709,953,271.70, a decrease from RMB 7,088,281,202.82 as of December 31, 2018, reflecting a decline of approximately 5.3%[190]. - Total liabilities increased to ¥4,294,750,264.12 from ¥3,990,805,455.69, representing a growth of approximately 7.6%[197]. - Total equity decreased to ¥7,125,125,432.25 from ¥7,530,676,860.14, indicating a decline of about 5.4%[197]. - Long-term liabilities totaled ¥192,529,005.77, up from ¥160,273,750.58, indicating an increase of approximately 20.1%[197]. - Current liabilities rose to ¥4,102,221,258.35 from ¥3,830,531,705.11, reflecting an increase of about 7.1%[197]. Investments and R&D - Research and development expenses increased significantly by 183.66% to ¥90,194,717.81 from ¥31,796,397.36 in the previous year[47]. - The company is committed to continuous technological innovation and has built collaborative platforms with universities and research institutions to enhance its product development capabilities[39]. - The company developed 16 new products in fields such as automotive manufacturing, engineering machinery, rail transportation, and energy power during the reporting period[39]. - New product development initiatives are underway, focusing on high-temperature steel technology, with a reported investment of 1,288.31 million yuan in related projects[116]. Market and Competition - The company plans to enhance its product structure and marketing strategies to address increasing market competition in the steel industry[77]. - The company faced challenges due to falling steel prices and rising costs of raw materials, impacting overall profitability[76]. - The company achieved a stable operational performance amidst a complex market environment, focusing on safety, environmental protection, and quality improvement[34]. Environmental and Social Responsibility - The company has identified 322 environmental protection technical reform projects to ensure compliance with emission standards[80]. - The company has established 37 wastewater treatment facilities with a design capacity of 69,000 tons per hour, achieving a water reuse rate of 97.76% in the first half of 2019[135]. - The company invested over 300,000 CNY in poverty alleviation efforts during the first half of 2019[144]. - A total of 6 registered impoverished individuals were lifted out of poverty through the company's initiatives[147]. - The company has been actively involved in social responsibility initiatives, aligning with government poverty alleviation plans[144]. Corporate Governance and Shareholder Matters - The company held its first temporary shareholders' meeting in 2019 with a participation rate of 44.99%[84]. - The company plans not to distribute cash dividends, issue bonus shares, or increase share capital from capital reserves for the semi-annual period[85]. - The semi-annual financial report has not been audited[86]. - There were no major litigation or arbitration matters during the reporting period[90]. - The company has not experienced any bankruptcy reorganization matters during the reporting period[89]. Related Party Transactions - The company engaged in related party transactions, including sales of raw materials and steel products, with transaction amounts of 115.26 million yuan and 31.71 million yuan respectively[97]. - The related party transactions accounted for 2.01% and 0.55% of similar transaction amounts[97]. - The accounts receivable from related parties included a balance of 975 million RMB from a joint venture, with no new amounts added during the period[112]. - The company has maintained a stable relationship with related parties, with a total of 1,033.44 million yuan in transactions recorded with Jiangsu Shagang Material Trading Co.[116]. Future Outlook - Future outlook includes plans for market expansion and potential mergers and acquisitions to enhance operational efficiency and market share[116]. - The company is focusing on risk management strategies to mitigate the impact of raw material price fluctuations and environmental regulations[77].

Financial Performance - The company's operating revenue for Q1 2019 was ¥2,904,718,930.09, a decrease of 13.96% compared to ¥3,375,935,832.72 in the same period last year[10] - Net profit attributable to shareholders was ¥100,266,576.90, down 60.62% from ¥254,630,627.07 year-on-year[10] - The net profit after deducting non-recurring gains and losses was ¥81,821,819.99, a decline of 65.33% compared to ¥236,000,351.54 in the previous year[10] - Basic earnings per share were ¥0.0454, down 60.66% from ¥0.1154 year-on-year[10] - Total profit decreased by 61.76% to ¥267.11 million, primarily due to a decline in steel sales prices and increased raw material procurement costs[27] - The net profit for the first half of 2019 is expected to be positive but will decline by over 50% year-on-year, with a projected range of 25,000 to 37,500 thousand yuan, reflecting a decrease of 61.36% to 42.05% compared to the same period in 2018[35] - The net profit for the first half of 2018 was 64,707 thousand yuan, indicating a significant drop in profitability due to falling steel prices and rising raw material costs, leading to a substantial decrease in gross profit margin[35] Cash Flow and Liquidity - The net cash flow from operating activities was ¥208,735,135.69, which is a 22.12% decrease from ¥268,023,085.33 in the same period last year[10] - Cash flow from operating activities decreased by 22.12% to ¥208.74 million, resulting from a reduction in cash collected from sales[27] - Cash flow from investing activities increased significantly by 1227.65% to ¥381.24 million, due to a decrease in the purchase of financial products[27] - The company's cash and cash equivalents increased from 332,496,854.61 yuan to 381,713,085.34 yuan, indicating improved liquidity[46] - Cash and cash equivalents at the end of the period were ¥276,090,378.45, an increase from ¥228,633,000.34 at the end of the previous period[71] Assets and Liabilities - Total assets at the end of the reporting period were ¥10,990,701,654.89, a decrease of 4.61% from ¥11,521,482,315.83 at the end of the previous year[10] - The total current assets decreased from 7,088,281,202.82 yuan to 6,512,781,736.92 yuan, primarily due to a reduction in inventory from 1,709,461,404.12 yuan to 1,392,591,268.72 yuan[46] - The total liabilities decreased from 3,990,805,455.69 yuan to 3,667,846,504.45 yuan, reflecting a reduction in short-term borrowings from 237,000,000.00 yuan to 100,000,000.00 yuan[49] - The owner's equity attributable to the parent company increased from 4,460,867,040.23 yuan to 4,585,264,105.77 yuan, indicating a strengthening of the company's financial position[52] - The total liabilities for Q1 2019 were CNY 81,617,681.49, an increase of 19.6% from CNY 68,260,237.37 in Q1 2018[56] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 64,487[15] - The company reported no violations regarding external guarantees during the reporting period[37] - There were no non-operating fund occupations by controlling shareholders or related parties during the reporting period[40] Research and Development - Research and development expenses surged by 480.84% to ¥6.63 million, attributed to an increase in the scope of R&D personnel and projects[27] - Research and development expenses for Q1 2019 were CNY 6,634,856.61, a substantial increase from CNY 1,142,284.02 in Q1 2018, reflecting a focus on innovation[60] Taxation - Tax expenses decreased by 58.62% to ¥70.29 million, corresponding to the decline in total profit[27] - The company reported a 33.12% decrease in taxes payable, amounting to approximately ¥283.67 million, due to the payment of last year's corporate income tax[27] Other Financial Metrics - Non-recurring gains and losses included government subsidies of ¥3,004,244.52 and financial product income of ¥31,657,981.15[10] - The company reported an increase in asset impairment losses to ¥2,329,361.71 from ¥178,574.92 in the previous period[64] - The company incurred management expenses of ¥3,887,108.39, up from ¥2,309,790.70 in the previous period[64] - The company has adopted new financial instrument standards, impacting the classification of certain financial assets[82] - The first quarter report for 2019 was not audited, indicating preliminary financial results[83]

Financial Performance - The company's operating revenue for 2018 was ¥14,712,449,109.37, representing an increase of 18.51% compared to ¥12,414,348,798.35 in 2017[23] - The net profit attributable to shareholders for 2018 was ¥1,177,037,447.93, a significant increase of 67.00% from ¥704,801,609.22 in 2017[23] - The net profit after deducting non-recurring gains and losses was ¥1,037,652,197.38, up 54.36% from ¥672,245,444.10 in the previous year[23] - The net cash flow from operating activities reached ¥2,560,178,917.48, an increase of 42.24% compared to ¥1,799,841,066.90 in 2017[23] - The basic earnings per share for 2018 was ¥0.533, reflecting a growth of 67.08% from ¥0.319 in 2017[23] - The total assets at the end of 2018 amounted to ¥11,521,482,315.83, which is a 19.32% increase from ¥9,655,589,008.23 at the end of 2017[23] - The net assets attributable to shareholders increased by 31.67% to ¥4,460,867,040.23 from ¥3,387,946,836.31 in 2017[23] - The weighted average return on equity for 2018 was 29.87%, up from 23.01% in 2017, indicating improved profitability[23] Dividend Distribution - The company plans to distribute a cash dividend of ¥0.30 per 10 shares, based on a total of 2,206,771,772 shares[6] - A cash dividend of CNY 0.30 per 10 shares was proposed for 2018, totaling CNY 66,203,153.16, which represents 11.25% of the net profit attributable to shareholders[106] - The cash dividend distribution accounted for 100% of the total distributable profit for 2018[106] - The company is in a mature development stage with significant capital expenditure plans, and the minimum cash dividend ratio should reach 40%[106] Operational Efficiency - The company successfully reduced costs by 510 million yuan through various efficiency improvement measures, including optimizing raw material procurement and production processes[45] - The company maintained a steel product plan execution rate of 98.5% and a contract on-time delivery rate of 96.95% in 2018[41] - The company achieved a production capacity of approximately 3.2 million tons of special steel annually, with products sold in both domestic and international markets[36] - The sales volume of steel products increased by 3.81% to 3.23 million tons, with a sales contract on-time delivery rate of 96.95%, up 1.23% year-over-year[46] Research and Development - Research and development expenses increased by 1,140.42% to ¥57,130,195.41, primarily due to an increase in the number of R&D personnel and projects[68] - The number of R&D personnel rose to 377, a significant increase of 1,008.82% compared to the previous year[72] - Total R&D investment reached ¥510,046,986.94, a 211.96% increase from ¥163,495,350.39 in the previous year[72] - R&D investment accounted for 3.47% of operating revenue, up from 1.32% the previous year, reflecting a 2.15% increase[72] - The company is focusing on the development of 19 new R&D projects, including high-purity steel for engineering machinery and high-strength steel for automotive applications[71] Market and Sales Performance - The steel industry contributed 88.04% to total revenue, with a year-over-year growth of 14.46% in this segment[49] - The company's revenue for the steel industry reached ¥11,786,957,366.46, representing a year-on-year increase of 14.32%[53] - The gross profit margin for the steel industry was 23.51%, an increase of 4.76% compared to the same period last year[53] - The company reported a significant increase in revenue from automotive and engineering machinery steel, with a year-on-year growth of 25.29%[53] Environmental and Social Responsibility - The company has implemented several environmental protection projects, including upgrades to pollution control systems, which have improved its environmental performance[169] - The company has a commitment to sustainable development, focusing on energy conservation and emissions reduction in its operations[169] - The company has actively participated in social welfare activities, with 368 employees donating blood and contributing to community health initiatives[169] - The company provided over 2.08 million RMB in support for poverty alleviation projects during the reporting period[171] Legal and Compliance Matters - The company reported no significant litigation or arbitration matters during the reporting period[119] - There were no penalties or rectification situations reported during the reporting period[120] - The company has not faced any major social security issues or administrative penalties from environmental authorities in 2018[169] - The company is involved in ongoing litigation related to a compensation claim of 45 million yuan due to a previous lawsuit loss, with the case currently under appeal[187] Financial Management - The company has entrusted financial management with a total amount of 399,512,000 CNY, with an unexpired balance of 397,594,070 CNY[145] - The company has invested 394,512,000 CNY in bank wealth management products, with no overdue amounts[145] - The expected annual return rate for entrusted financial management ranges from 5.10% to 8.00%[145] - The company has a structured approach to managing financial risks associated with entrusted financial management[145]

Financial Performance - Operating revenue for the reporting period was ¥3,784,564,241.26, representing a 35.93% increase compared to the same period last year[8]. - Net profit attributable to shareholders of the listed company was ¥346,379,542.60, up 91.52% year-on-year[8]. - Net profit attributable to shareholders after deducting non-recurring gains and losses was ¥324,623,023.53, an increase of 88.90% compared to the same period last year[8]. - Basic earnings per share for the reporting period was ¥0.1570, up 91.46% compared to the same period last year[8]. - The company expects a net profit attributable to shareholders for 2018 to increase by 60.00% to 100.00%, estimating between CNY 112,768 million and CNY 140,960 million[23]. - Net profit for the first nine months of 2018 reached CNY 254,043.92 million, a 149.47% increase year-on-year, driven by high steel prices and increased sales revenue[17]. Asset and Shareholder Information - Total assets at the end of the reporting period reached ¥10,390,474,425.69, an increase of 7.61% compared to the end of the previous year[8]. - Net assets attributable to shareholders of the listed company amounted to ¥4,292,722,229.38, reflecting a growth of 26.71% year-on-year[8]. - The total number of ordinary shareholders at the end of the reporting period was 47,404[12]. - The largest shareholder, Jiangsu Shagang Group Co., Ltd., held 20.34% of the shares, totaling 448,871,726 shares[12]. Cash Flow and Investments - Net cash flow from operating activities reached ¥706,868,258.96, a rise of 67.31% year-on-year[8]. - The net cash flow from operating activities for the first nine months of 2018 was CNY 1.903 billion, an increase of CNY 615 million year-on-year, reflecting improved cash inflow from sales[17]. - The company reported a net cash outflow from investing activities of CNY 1.207 billion, an increase of CNY 230 million year-on-year, mainly due to higher expenditures on environmental upgrades[17]. - Investment income surged by 204.27% to CNY 8,344.22 million compared to the same period last year, attributed to higher returns from financial investments[17]. Liabilities and Expenses - Short-term borrowings rose by 33.00% to CNY 13,300 million, primarily due to increased financing by a subsidiary[16]. - Tax expenses for the first nine months of 2018 increased by 127.84% to CNY 61,473.64 million, reflecting higher profits[17]. Wealth Management - The total amount of entrusted wealth management reached 324,200 thousand, with an outstanding balance of 276,456.85 thousand[29]. - The company has no overdue amounts in its entrusted wealth management products, indicating a strong liquidity position[29]. - The company has invested 10,000 thousand in other types of wealth management products, all sourced from its own funds[29]. - The bank wealth management products accounted for 309,200 thousand of the total entrusted wealth management amount[29]. - The company has not reported any expected inability to recover principal or other impairment risks in its entrusted wealth management[30]. Other Information - Other current assets increased by 40.93% to CNY 276,456.85 million compared to the beginning of the year, mainly due to the investment in financial products using idle funds[16]. - The balance of construction in progress rose by 134.10% to CNY 38,571.16 million, primarily due to increased investment in environmental technology upgrades by a subsidiary[16]. - The balance of undistributed profits increased by 58.61% to CNY 250,940.21 million, mainly due to significant net profit growth during the reporting period[16]. - There were no research, communication, or interview activities conducted during the reporting period[31].

Financial Performance - The company's operating revenue for the first half of 2018 was CNY 7,234,988,976.74, an increase of 18.41% compared to CNY 6,110,143,275.48 in the same period last year[17]. - The net profit attributable to shareholders of the listed company reached CNY 647,077,300.59, representing a significant increase of 242.33% from CNY 189,023,691.78 year-on-year[17]. - The net profit after deducting non-recurring gains and losses was CNY 546,274,984.35, up 202.93% from CNY 180,330,699.54 in the previous year[17]. - The net cash flow from operating activities was CNY 1,195,929,799.38, an increase of 38.23% compared to CNY 865,199,952.33 in the same period last year[17]. - The total operating revenue for the reporting period reached ¥7,234,988,976.74, representing an 18.41% increase compared to ¥6,110,143,275.48 in the same period last year[41]. - Net profit attributable to shareholders reached 647 million yuan, a significant increase of 242.33% year-on-year[37]. - The company reported a total profit of ¥1,644,599,959.61, which is a 203.5% increase from ¥542,115,059.49 in the previous year[143]. - Earnings per share (EPS) for the first half of 2018 was ¥0.2932, compared to ¥0.0857 in the same period last year, marking an increase of 242.4%[143]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 10,289,218,900.70, reflecting a growth of 6.56% from CNY 9,655,589,008.23 at the end of the previous year[17]. - The net assets attributable to shareholders of the listed company increased to CNY 4,012,235,907.90, up 18.43% from CNY 3,387,946,836.31 at the end of the previous year[17]. - The total liabilities increased to CNY 3.68 billion from CNY 3.51 billion, marking a rise of about 4.8%[140]. - The total amount of accounts payable to related parties at the end of the reporting period was 1,372.37 million yuan, reflecting ongoing operational engagements[88]. Production and Sales - The company produced approximately 3.2 million tons of special steel annually, with products sold in both domestic and international markets[25]. - In the first half of 2018, the company produced 148.62 million tons of iron, a decrease of 0.72% year-on-year, while steel production increased by 14.75% to 176.46 million tons[37]. - The main business revenue from steel products amounted to ¥6,730,494,872.94, accounting for 93.02% of total revenue, with a year-on-year growth of 28.80%[41]. Research and Development - The company developed 12 new products and produced 58 new products in the first half of the year, enhancing market competitiveness[30]. - The company has established multiple technology research and development platforms, collaborating with various universities and research institutes to innovate new processes and technologies[29]. - Research and development expenses decreased by 59.27% to ¥31,796,397.36, indicating reduced investment in new product development[42]. Environmental and Safety Management - The company has established 37 wastewater treatment facilities with a design capacity of 69,000 tons per hour, achieving a water reuse rate of over 97% in the first half of 2018[102]. - The company operates 43 dust removal facilities and 4 desulfurization facilities, with a waste gas treatment capacity of 16.94 million cubic meters per hour, ensuring all emissions meet standards[102]. - The company is committed to safety management, achieving a 100% rectification rate for identified safety hazards during the reporting period[35]. - The company has implemented a comprehensive environmental management system and established an environmental protection committee to oversee compliance with environmental regulations[101]. Related Party Transactions - The company received a total compensation of CNY 23,620,539.50 from related parties, including CNY 17,496,695.92 from the controlling shareholder[75]. - The company reported a total of 547.73 million yuan in related party transactions, accounting for 1.83% of similar transaction amounts[80]. - The company engaged in related party transactions with Jiangsu Shagang Group, totaling 604.47 million yuan, which is 0.09% of similar transaction amounts[80]. Future Outlook - The expected net profit for the period from January to September 2018 is projected to increase by 105.00% to 155.00%, compared to the previous year[60]. - The company plans to continue focusing on safety, environmental protection, quality, and efficiency to achieve its annual operational goals[25]. Legal and Regulatory Matters - The company has not experienced any major litigation or arbitration matters during the reporting period[74]. - The company is involved in ongoing litigation with a claim amounting to CNY 208,661,945.94 plus interest, with multiple parties involved in the case[76]. - The arbitration cases have been concluded, with all rulings being final and effective immediately upon issuance[118]. Shareholder Information - The total share capital as of June 30, 2018, is 2,206,771,772 shares, with no bonus shares or capital reserve conversion planned for this distribution[70]. - The controlling shareholder, Jiangsu Shagang Group, holds a 20.34% stake in the company, following a non-public issuance of shares in December 2010[77].