LIUSTEELCO(SH:601003)2024-08-26 11:11Financial Performance - The company's operating revenue for the first half of 2024 was CNY 37,823,738,014.42, a 0.76% increase compared to CNY 37,538,209,072.84 in the same period last year[12]. - The net profit attributable to shareholders of the listed company was CNY 54,138,885.03, a significant recovery from a loss of CNY 144,717,172.41 in the previous year[12]. - The net cash flow from operating activities reached CNY 879,592,460.31, a substantial increase of 1,895.81% compared to CNY 44,071,876.43 in the same period last year[12]. - Basic earnings per share for the first half of 2024 were CNY 0.02, recovering from a loss of CNY 0.06 in the same period last year[13]. - The weighted average return on equity increased to 0.61%, up by 2.1 percentage points from -1.49% in the previous year[13]. - The company achieved a 65% year-on-year increase in export volume, with export earnings rising by 47%[22]. - The company reported a significant increase in sales expenses, which totaled ¥21,766,704.53, compared to ¥21,436,771.96 in the previous year, marking an increase of about 1.54%[69]. - The company's operating profit for the first half of 2024 was ¥48,599,189.60, a significant improvement from a loss of ¥404,915,248.96 in the same period of 2023, marking a turnaround of over 112%[70]. - Total profit for the first half of 2024 reached ¥62,355,600.52, compared to a loss of ¥354,436,556.96 in the first half of 2023, indicating a recovery in profitability[70]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 66,638,093,939.66, a decrease of 2.82% from CNY 68,575,026,278.63 at the end of the previous year[12]. - The net assets attributable to shareholders of the listed company increased to CNY 8,873,323,766.80, reflecting a 0.70% growth from CNY 8,811,206,248.05 at the end of the previous year[12]. - Cash and cash equivalents decreased by 20.97% to CNY 533,015.29 million, accounting for 8.00% of total assets[27]. - Total liabilities increased by 10.34% to CNY 762,156.84 million, which is 11.44% of total assets[27]. - The company’s total liabilities decreased to CNY 45,297,499,845.61 from CNY 47,307,067,286.65, reflecting a reduction of about 4.3%[65]. - The company’s total assets at the end of the reporting period were CNY 22.56 billion, with minority interests accounting for CNY 12.54 billion[82]. Operational Efficiency - The company operates a lean management approach, focusing on "deepening reform and improving quality and efficiency" while maintaining a customer-centric integrated business model[18]. - The company maintained a 98% utilization rate of industrial recycled water, with annual recycled water volume exceeding 51 million tons[20]. - The company’s logistics efficiency improved, with a port direct connection rate of 99% and a throughput increase of 48% year-on-year[21]. - The company’s cash flow from operating activities showed a net outflow of -¥1,223,128,124.90 for the first half of 2024, compared to -¥3,464,837,459.28 in the same period of 2023[75]. Market Conditions - In the first half of 2024, the steel industry faced significant challenges, with black metal smelting and rolling industries reporting a revenue of CNY 39,727.7 billion, a year-on-year decrease of 3.0%[15]. - The apparent consumption of crude steel in China is estimated to be 473 million tons in the first half of 2024, a year-on-year decline of 4.37%[15]. - The crude steel production in China for the first half of 2024 was 530 million tons, a year-on-year decrease of 1.1%, indicating a supply-demand imbalance in the market[15]. Environmental Initiatives - The company emphasizes sustainable development and continuous improvement in product quality, aiming to enhance its competitive edge in the steel industry[19]. - The company was recognized as a "Green Development Excellent Enterprise" for its efforts in low-carbon upgrades and environmental management[24]. - The company emitted 9,951,923 tons of CO2 directly, with no exceedance of emission standards reported[38]. - The company has achieved zero wastewater discharge by recycling all process water and treating industrial wastewater for reuse[40]. - The company has implemented a series of measures to reduce waste gas emissions, including the installation of dust removal systems and desulfurization and denitrification systems across all production processes[40]. Governance and Compliance - The company has established a governance structure including a shareholders' meeting, board of directors, and supervisory board, with 18 departments and 4 production plants[86]. - The company has committed to ensuring the independence of the listed company and will not use its controlling position to harm the interests of the listed company and other shareholders[53]. - The company has established an independent financial department and accounting system to ensure financial independence and compliance with tax obligations[52]. - The company confirmed that there are no significant lawsuits or arbitration matters during the reporting period[54]. Research and Development - R&D investment grew by 32.2% year-on-year, with a total of 84 patent applications filed and 95 patents granted[23]. - The company has made significant investments in R&D for corrosion-resistant stainless steel and direct rolling technology, which qualify for tax deductions[149]. Shareholder Information - The total number of ordinary shareholders as of the end of the reporting period is 42,273[56]. - The largest shareholder, Guangxi Liuzhou Steel Group Co., Ltd., holds 1,910,963,595 shares, representing 74.57% of the total shares[56]. - The shareholding of the top ten shareholders remains unchanged during the reporting period[56]. Financial Ratios - The current ratio decreased to 0.67 from 0.77, a reduction of 10% compared to the end of the previous year[62]. - The quick ratio decreased to 0.34 from 0.40, a reduction of 15% compared to the end of the previous year[62]. - The debt-to-asset ratio improved slightly to 67.98% from 68.99%, a decrease of 1.01%[62]. - The interest coverage ratio increased to 1.10 from 0.38, an improvement of 189.47%[62]. Taxation and Financial Policies - The company benefits from a 15% corporate income tax rate for certain operations located in the western region of China, effective from January 1, 2021, to December 31, 2030[149]. - The company enjoys a 90% reduction in taxable income for resource utilization products, which includes electricity generated from blast furnace gas[149]. - The company has a VAT refund policy for resource utilization products, effective for the year 2024[149].