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 HK112 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].
中国东方集团(00581) - 2022 - 年度财报