Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 13,969 million, a decrease of 4.6% compared to RMB 14,644 million in the same period of 2022[16]. - Gross profit for the same period was RMB 22,059 million, down from RMB 24,999 million in 2022, reflecting a decline of 11.7%[16]. - Profit for the period attributable to owners of the Company was RMB 282 million, a significant decrease from RMB 1,199 million in 2022, representing a decline of 76.5%[16]. - Basic earnings per share for the six months ended June 30, 2023, was RMB 0.08, compared to RMB 0.32 in the same period of 2022, a decrease of 75%[16]. - The Company reported an EBITDA of RMB 1,050 million for the six months ended June 30, 2023, down from RMB 2,273 million in 2022, a decline of 53.8%[16]. - The Group's net profit for the six months ended June 30, 2023, decreased by approximately 72.9% to around RMB 1.02 billion compared to RMB 3.74 billion for the same period in 2022[38]. - Revenue for the same period was approximately RMB 22.06 billion, representing a decrease of approximately 11.8% compared to the corresponding period last year[38]. - Gross profit decreased by approximately 58.5% to approximately RMB 562 million compared to the same period in 2022[38]. - Interim net profit was approximately RMB 276 million, a decrease of approximately 77.6% from RMB 1.23 billion in the previous year[38]. - EBITDA decreased from approximately RMB 2.27 billion for the corresponding period last year to approximately RMB 1.05 billion[38]. Sales and Production - Sales volume of self-manufactured steel products increased to 3,881,000 tonnes in 2023, up from 3,323,000 tonnes in 2022, an increase of 16.7%[25]. - The average selling price per tonne of self-manufactured steel products decreased to RMB 3,599 in 2023 from RMB 4,406 in 2022, a decline of 18.3%[21]. - The sales volume of H-section steel products was 1,945,000 tonnes, representing 50.1% of total sales volume, with a 6.5% increase compared to the previous year[50]. - The sales volume of strips and strip products increased by 20.8% to 1,442,000 tonnes, accounting for 37.2% of total sales volume[50]. - For the six months ended June 30, 2023, the Group's total sales volume was approximately 3.88 million tonnes, representing an increase of approximately 16.8% compared to 3.32 million tonnes in the same period of 2022[49]. Assets and Liabilities - Total assets as of June 30, 2023, were RMB 49,459 million, an increase from RMB 48,024 million in 2022[17]. - The net assets value per share increased slightly to RMB 6.12 in 2023 from RMB 6.07 in 2022[17]. - As of June 30, 2023, the Group had unutilized banking facilities of approximately RMB 15.2 billion, an increase from RMB 13.6 billion as of December 31, 2022[72]. - The current ratio as of June 30, 2023, was 1.3 times, up from 1.2 times on December 31, 2022, while the gearing ratio was 48.5%, compared to 47.3% at the end of 2022[72]. - Cash and cash equivalents amounted to approximately RMB 4,666 million as of June 30, 2023, significantly higher than RMB 2,125 million as of December 31, 2022[72]. - The debt-to-capital ratio was 57.6% as of June 30, 2023, compared to 56.7% on December 31, 2022[74]. - Capital commitments as of June 30, 2023, were approximately RMB 1,558 million, down from RMB 1,925 million as of December 31, 2022[75]. - Contingent liabilities amounted to approximately RMB 15 million as of June 30, 2023, a decrease from RMB 88 million at the end of 2022[78]. Market and Economic Conditions - National production volumes of pig iron, crude steel, and steel products in the first half of 2023 were 452 million tonnes, 536 million tonnes, and 677 million tonnes, representing increases of 2.7%, 1.3%, and 4.4% respectively compared to the same period in 2022[33]. - Infrastructure investment in China increased by 7.2% year-on-year, while the new construction area in the real estate sector saw a decline of 24.9%[33]. - The international environment remains complex and volatile, with economic growth slowing down and uncertainties affecting the global economy[66]. - The Group expects the business environment of the iron and steel industry to face various uncertainties in the second half of 2023, with fluctuations at a low level but an overall gradual improvement trend[66]. Strategic Initiatives - The Group continues to focus on cost reduction, efficiency improvement, and investment in marketing and environmental protection[37]. - The Group aims to achieve better cost efficiency and reduce emissions through investments in projects such as a 150MW mountainous centralized photovoltaic power station and comprehensive utilization of solid waste as new materials in the second half of 2023[67]. - The Group continues to explore horizontal and vertical merger and acquisition opportunities to broaden revenue sources and enhance profitability[68]. - The Group plans to strengthen upstream and downstream integration with its power transmission equipment business in the second half of 2023[67]. - The Group is committed to green and sustainable development, closely following policy developments and exploring carbon reduction technology solutions[67]. Investment and Financial Management - The Group's financial strategy includes a review and reallocation of its currency assets to reduce the impact of exchange rate changes[83]. - The Group utilized a combination of derivatives to manage the volatility of steel products and iron ore prices during the reporting period[84]. - The total amount of purchases made in money market funds during the six months ended June 30, 2023, was RMB 45,063 thousand, while total disposals amounted to RMB 59,878 thousand[87]. - The investment strategy for money market funds focuses on high liquidity and low risk, primarily investing in short-term money market instruments[91]. - The Group's financial assets at fair value through profit or loss include various money market funds, with specific funds showing different levels of investment performance[87]. Dividend and Shareholder Returns - The Group did not recommend the distribution of an interim dividend for 2023, considering the current challenges in the iron and steel industry[39]. - The Board proposed a special dividend of approximately HK$112 million, equivalent to approximately RMB102 million, which was approved by shareholders and paid on August 18, 2023[84]. - The Group will evaluate the possibility of increasing dividend distributions to reward shareholders under appropriate circumstances[68].

Financial Performance - Steel product sales volume increased by 16.8% to 3.88 million tons, while trading volume rose by 12.7% to 3.98 million tons compared to the same period last year[2]. - Revenue from self-produced steel products decreased by 4.6% to RMB 13.97 billion, while revenue from power equipment sales increased by 8.1% to RMB 1.62 billion[2]. - EBITDA dropped by 53.8% to RMB 1.05 billion, with an EBITDA margin of 4.8% compared to 9.1% in the previous year[3]. - Net profit for the period fell by 77.6% to RMB 276.14 million, with earnings per share decreasing by 75.0% to RMB 0.08[3]. - For the six months ended June 30, 2023, total sales amounted to RMB 22,058,731 thousand, a decrease from RMB 24,998,775 thousand for the same period in 2022, representing a decline of approximately 7.8%[20]. - The company reported a net profit of RMB 276,135 thousand for the six months ended June 30, 2023, compared to RMB 1,230,020 thousand for the same period in 2022, reflecting a significant decrease[22]. - The profit before tax for the six months ended June 30, 2023, was RMB 266,002 thousand, a significant decrease from RMB 1,490,097 thousand in the same period of 2022, representing a decline of approximately 82.1%[31]. - The basic earnings per share for the six months ended June 30, 2023, was RMB 0.08, down from RMB 0.32 in the same period of 2022, indicating a decrease of 75%[32]. - Revenue for the first half of 2023 was approximately RMB 22.06 billion, down about 11.8% year-on-year[58]. Assets and Liabilities - Total assets increased by 3.0% to RMB 49.46 billion as of June 30, 2023, compared to RMB 48.02 billion at the end of 2022[3]. - Total liabilities as of June 30, 2023, were RMB 24,011,717 thousand, up from RMB 22,738,943 thousand at the end of 2022, indicating an increase of about 5.6%[10]. - The company's equity attributable to owners increased to RMB 25,447,565 thousand from RMB 25,284,647 thousand, showing a growth of approximately 0.65%[10]. - Cash and cash equivalents at the end of the period increased to RMB 4,666,094 thousand from RMB 2,124,697 thousand, marking a significant rise of approximately 119.5%[11]. - The company's long-term bank deposits decreased to RMB 1,590,000 thousand from RMB 2,090,000 thousand, a decline of approximately 23.9%[9]. - The total borrowings as of June 30, 2023, reached RMB 14.60 billion, up from RMB 13.44 billion as of December 31, 2022, representing an increase of approximately 8.7%[48]. Revenue Breakdown - The total revenue from the steel division was RMB 21,975,108 thousand, while the real estate division contributed RMB 83,623 thousand to the total revenue[22]. - The revenue from H-beam steel products was RMB 7,055,205 thousand, down from RMB 8,422,123 thousand in the previous year, reflecting a decrease of about 16.2%[20]. - The iron ore revenue decreased to RMB 4,570,854 thousand from RMB 6,182,948 thousand, marking a decline of approximately 26.0%[20]. - The real estate segment generated revenue of RMB 83,623 thousand, significantly up from RMB 32,206 thousand, indicating an increase of approximately 159.0%[20]. Cost and Profitability - The gross profit margin for self-produced steel products decreased by 64.4% to RMB 145 per ton[2]. - The company reported a significant decline in gross profit from trading steel products and related materials, down 92.5% to RMB 0.19 billion[2]. - Gross profit for the first half of 2023 was approximately RMB 562 million, a decrease of about 58.5% from RMB 1.35 billion in the same period of 2022, with a gross margin of 4.0%[65]. - The average selling price of self-produced steel products fell by 18.3% to approximately RMB 3,599 per ton[58]. - The average cost per ton of steel products was RMB 3,454, leading to a gross profit per ton of RMB 145, a decrease of 64.4% from RMB 407 in the same period of 2022[66]. Dividends and Shareholder Returns - The company did not declare an interim dividend, compared to HKD 0.07 per share in the same period last year[3]. - The total dividend paid for the six months ended June 30, 2023, was RMB 101,521 thousand, compared to RMB 284,532 thousand in the same period of 2022, reflecting a reduction of approximately 64.3%[34]. - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2023, contrasting with the interim dividend of approximately RMB 2.29 billion paid in the same period of 2022[35]. Research and Development - Research and development expenses increased to RMB 167.24 million from RMB 156.17 million, reflecting a focus on innovation[6]. - The company’s research and development expenses remained relatively stable, with a slight decrease from RMB 35,067 thousand in 2022 to RMB 35,002 thousand in 2023[31]. Market Outlook and Strategy - The outlook for the second half of 2023 indicates a complex international environment with slowing economic growth and inflation pressures, but infrastructure construction is expected to continue to drive demand[69]. - The group anticipates a slight decline in both steel supply and demand in 2023, with a cautious optimism for gradual improvement in the overall development trend[70]. - The company is focusing on cost reduction and efficiency improvement through various measures, including procurement and logistics optimization[59]. - The company is currently evaluating the comprehensive impact of new accounting standards and interpretations that will take effect from January 1, 2024[18]. Cash Flow and Operating Activities - The net cash generated from operating activities for the six months ended June 30, 2023, was RMB 598,770 thousand, compared to RMB 563,267 thousand for the same period in 2022, reflecting an increase of about 6.5%[11]. - The company reported a net cash inflow from financing activities of RMB 1,370,715 thousand for the first half of 2023, compared to RMB 1,163,405 thousand in the same period of 2022, an increase of about 17.9%[11]. Inventory and Receivables - Inventory decreased to RMB 4,704,751 thousand from RMB 6,089,732 thousand, representing a decline of approximately 22.7%[9]. - Trade receivables increased to RMB 3,188,592 thousand from RMB 2,818,200 thousand, reflecting a growth of about 13.1%[9]. - The accounts receivable and contract assets as of June 30, 2023, totaled RMB 4,070,106 thousand, an increase from RMB 3,460,253 thousand as of December 31, 2022, indicating a growth of about 17.6%[37]. Investment and Financial Assets - The total fair value of financial assets measured at fair value through profit or loss is RMB 4,844,270 thousand as of June 30, 2023, slightly up from RMB 4,828,414 thousand as of December 31, 2022[40]. - The company has not disclosed any significant events affecting its operations since the balance sheet date[81]. - The company has reallocated its currency assets to reduce the impact of RMB/USD exchange rate fluctuations[78]. Corporate Governance - The company has complied with the corporate governance code during the six months ended June 30, 2023, with the exception of the separation of the roles of Chairman and CEO[189]. - The audit committee reviewed the group's financial information for the six months ended June 30, 2023, and confirmed compliance with applicable accounting standards and regulations[192].

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

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

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

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