LIUSTEELCO(601003)2021-04-27 16:00Financial Performance - The company's operating revenue for 2020 was approximately ¥54.69 billion, an increase of 12.49% compared to ¥48.62 billion in 2019[24]. - The net profit attributable to shareholders for 2020 was approximately ¥1.72 billion, a decrease of 26.63% from ¥2.34 billion in 2019[24]. - The company reported a net profit attributable to shareholders of ¥1.70 billion for 2020, reflecting a decrease of 26.83% from the previous year[24]. - The net profit attributable to shareholders, excluding non-recurring gains and losses, for 2020 was CNY 2,605,576,964.41, a decrease of 35.75% compared to the previous year[27]. - The basic earnings per share for 2020 was CNY 0.91, down 26.38% from CNY 1.79 in 2019[27]. - The weighted average return on equity decreased by 8.63 percentage points to 15.95% in 2020[27]. - The company's operating revenue for 2020 was CNY 54.694 billion, an increase of 12.49% compared to the previous year, while operating costs rose to CNY 50.411 billion, reflecting a 14.90% increase[61]. - The net profit for the year was CNY 1.764 billion, indicating a stable performance despite challenges posed by the pandemic[55]. - The total assets of the company reached CNY 60.595 billion, a year-on-year increase of 19.05%, while total liabilities grew by 28.97% to CNY 35.712 billion[56]. Dividends and Share Capital - The proposed cash dividend is ¥2.5 per 10 shares, totaling approximately ¥640.70 million, which represents 37.28% of the net profit attributable to shareholders[7]. - The company did not conduct capital reserve transfers to increase share capital or issue bonus shares in 2020[7]. - The company will not issue new shares or stock dividends for the year 2020[113]. - The company emphasizes a cash dividend policy, distributing at least 30% of the distributable profit to shareholders annually, barring special circumstances[108]. - The company has a continuous and stable profit distribution policy, prioritizing cash dividends while considering the interests of all shareholders[107]. Operational Highlights - The company is a core subsidiary of Liugang Group, focusing on steel production and serving markets in Southeast Asia, Europe, and Africa[35]. - The company’s main products include low-alloy plates, rebar, and high-quality wire rods, which are widely used in various industries[35]. - The company did not report any significant changes in its main business operations during the reporting period[35]. - The company has a pig iron production capacity of 11.46 million tons and a steel production capacity of 12.5 million tons, with no ongoing construction projects[40]. - The company completed a capital increase to gain controlling interest in Guangxi Steel, enhancing its product line with high-end steel varieties[48]. - The company aims to expand its market presence through strategic partnerships and product innovation, focusing on high-strength automotive and home appliance steel[48]. - The company aims to produce 12 million tons of iron and 13.8 million tons of steel in the upcoming year[100]. Research and Development - The company has established a comprehensive R&D system, collaborating with universities and research institutions to enhance product development capabilities[41]. - Research and development expenses increased by 10.80% to CNY 1.550 billion, reflecting the company's commitment to technological innovation[60]. - The company aims to develop 14 new high-end steel grades, with a target of over 60% for high-strength steel ratio in the product mix for the year[104]. - The company will implement over 10 new technologies and processes to enhance operational efficiency and product quality[104]. - The company is focusing on technological innovation to strengthen core technologies and products with independent intellectual property rights[99]. Environmental and Safety Initiatives - The company has made significant progress in energy management, achieving a total energy consumption of 7.5826 million tons of standard coal, with a comprehensive energy consumption of 534.21 kg of standard coal per ton of steel[50]. - The company completed six ultra-low emission transformation projects during the year and was recognized as a "green factory" by the Ministry of Industry and Information Technology[55]. - The company is committed to maintaining zero major safety and environmental incidents in its operations[100]. - The company has established over 200 sets of waste gas treatment facilities, achieving ultra-low emission standards for dust, SO2, and NOx[162]. - The company has implemented measures to manage hazardous waste effectively, with no environmental safety incidents reported in 2020[162]. Market Trends and Industry Insights - In 2020, China's crude steel production reached 1.065 billion tons, a year-on-year increase of 7.0%[43]. - The average sales profit margin for the steel industry was 4.41%, a decrease of 0.18 percentage points year-on-year[47]. - In 2020, the total sales revenue of key steel enterprises was 4.7033 trillion yuan, a year-on-year increase of 10.86%[45]. - Steel exports from China decreased by 16.5% in 2020, while imports increased by 64.4%[44]. - The expected total demand for steel in China for 2021 is projected to reach 1.1 billion tons, marking a new high[99]. Financial Management and Governance - The company has established an independent financial department with dedicated personnel and a separate accounting system, ensuring independent financial decision-making and tax obligations[121]. - The company commits to maintaining the independence of the listed company, ensuring no cross-relationships in labor, compensation, and management with other controlled enterprises[121]. - The company has pledged to minimize related party transactions with the listed company to protect its interests and those of other shareholders[121]. - The company has appointed Tianzhi International Accounting Firm for the 2020 financial audit, with an audit fee of 700,000 RMB[133]. - The company reported no significant accounting errors or changes in accounting policies during the reporting period[132]. Legal Matters - The company is involved in significant litigation matters, including a lawsuit against Huaxia Bank involving an amount of 1,700,000 RMB[136]. - The company has initiated a recovery lawsuit against Nanguiz Steel Company for losses incurred from a loan contract dispute, with a claim amount of 1,550,470 RMB[139]. - The company is also pursuing claims against Guangxi Steel Group for a construction payment dispute, amounting to 5,617,500 RMB[139]. - The company has ongoing litigation related to historical debt issues with Jingxin Source National Energy Technology Group, with no resolution reached yet[141]. Shareholder Information - As of the end of the reporting period, the total number of ordinary shareholders was 47,513, an increase from 42,616 at the end of the previous month[6]. - The largest shareholder, Guangxi Liuzhou Iron and Steel Group Co., Ltd., held 1,910,963,595 shares, representing 74.57% of the total shares[7]. - The company’s bond credit rating was rated AAA by Shanghai New Century Confidence Assessment Investment Service Co., Ltd.[5]. - The company has no strategic investors or general legal entities among the top ten shareholders[191]. - The company does not have any preferred shareholders with voting rights[183].