CISC(601005)2025-03-28 14:15Financial Performance - In 2024, Chongqing Iron and Steel reported a revenue of CNY 27.24 billion, a decrease of 30.71% compared to CNY 39.32 billion in 2023[22]. - The net profit attributable to shareholders for 2024 was CNY -3.20 billion, worsening from CNY -1.49 billion in 2023[22]. - The company's total assets decreased by 5.03% to CNY 35.48 billion at the end of 2024, down from CNY 37.36 billion in 2023[22]. - The net asset attributable to shareholders fell by 16.36% to CNY 16.61 billion at the end of 2024, compared to CNY 19.85 billion in 2023[22]. - The basic earnings per share for 2024 was CNY -0.36, compared to CNY -0.17 in 2023[23]. - The weighted average return on equity decreased to -17.53% in 2024 from -7.26% in 2023, indicating a significant decline in profitability[24]. - The company will not distribute profits for 2024 due to negative retained earnings of CNY -12.34 billion at year-end[6]. - The decline in revenue was primarily attributed to reduced sales volume and prices of commodity steel products[24]. - In 2024, the company's total profit amounted to -3.292 billion RMB, a decrease of 1.547 billion RMB year-on-year[31]. - The average selling price of commodity billets decreased by 7.45% to 3,367 RMB per ton, contributing to a revenue loss of approximately 248.1 million RMB[47]. Operational Efficiency - The net cash flow from operating activities increased by 28.16% to CNY 1.31 billion in 2024, up from CNY 1.02 billion in 2023[22]. - Cost reduction measures implemented by the company resulted in a profit increase of 382 million RMB, with a 7% reduction in steel production costs (excluding labor depreciation) year-on-year[32]. - The company's inventory capital occupation decreased by 865 million RMB by the end of 2024 compared to the beginning of the year[33]. - The company achieved a steel production of 7.58 million tons and a total output of 7.61 million tons of commodity billets, with year-on-year growth of 6.57% and a decrease of 25.53% respectively[41]. - The company’s sales volume of commodity billets was 759.94 thousand tons, down 26.14% year-on-year, resulting in a revenue decrease of approximately 936.9 million RMB[49]. Market Conditions - China's crude steel production in 2024 was 1,005.09 million tons, a year-on-year decrease of 1.7%[35]. - Steel exports reached 110.716 million tons in 2024, marking a year-on-year increase of 22.7% and the highest level since 2015[35]. - The steel market's purchase and sale price difference decreased by over 13% compared to 2023, leading to a continuous contraction in profit margins[31]. - The steel industry reported revenue of 26,997,779 thousand, with a year-over-year decrease of 30.83% in revenue and a gross margin of -5.13%[51]. - Steel demand has declined due to real estate market regulation and reduced infrastructure investment, despite stable economic growth in China[64]. Research and Development - The company’s R&D expenses increased by 30.78% to 41.78 million RMB, attributed to the rise in R&D projects[43]. - In 2024, the company launched 69 new products with a sales rate of 13.03% and filed 260 patent applications[34]. - The company is focused on technological innovation to enhance product competitiveness and aims to develop high-quality steel products[80]. Corporate Governance - The company adheres to strict corporate governance principles and has established an effective internal control system[85]. - The company has maintained compliance with information disclosure regulations, ensuring that all investors have equal access to accurate and timely information[89]. - The company has not experienced any incidents of insider information leakage or insider trading during the reporting period[90]. - The board has established various committees, including a strategy and risk committee, an audit committee, a remuneration and assessment committee, and a nomination committee, to enhance governance[88]. Environmental Responsibility - The company has invested 887.20 million yuan in environmental protection during the reporting period[188]. - The company has established an environmental protection mechanism and complies with pollution discharge standards, with no exceedances reported[189]. - The company has reduced carbon dioxide equivalent emissions by 85,290.66 tons through various carbon reduction measures[197]. - The comprehensive energy consumption per ton of steel has decreased to 499.24 kgce/t, down 2.67% from 512.95 kgce/t in 2023[198]. Strategic Initiatives - The company is positioned to leverage opportunities from national policies such as "Western Development" and "Belt and Road Initiative," enhancing its market presence in the southwest region[39]. - The company is committed to green development and aims to build a cost-optimized procurement system while pursuing extreme efficiency in production[80]. - The company plans to produce 6.67 million tons of iron, 8.01 million tons of steel, and 7.73 million tons of materials by 2025[79].