HZIS(SH:600126)2025-04-11 11:00Financial Performance - The net profit attributable to shareholders for 2024 is -628,119,636.11 RMB, a decrease of 444.68% compared to the previous year's profit of 182,231,004.36 RMB[6]. - Operating revenue for 2024 reached 63,664,403,119.23 RMB, representing a 14.04% increase from 55,826,620,920.99 RMB in 2023[22]. - The basic earnings per share for 2024 is -0.19 RMB, a decline of 480% from 0.05 RMB in 2023[24]. - The weighted average return on equity for 2024 is -3.17%, a decrease of 4.07 percentage points compared to 0.90% in 2023[24]. - The net cash flow from operating activities for 2024 is 1,129,659,454.33 RMB, a significant improvement from -2,742,343,733.91 RMB in 2023[22]. - The total assets at the end of 2024 amount to 19,402,328,846.54 RMB, a decrease of 3.94% from 20,198,161,077.56 RMB in 2023[23]. - The net profit after deducting non-recurring gains and losses for 2024 is -834,310,521.57 RMB, compared to -13,246,408.63 RMB in 2023[22]. - The company reported a decrease in net assets attributable to shareholders, reflecting ongoing financial challenges[23]. Operational Highlights - In 2024, the company produced 4.278 million tons of pig iron, 4.338 million tons of slab, and 4.290 million tons of hot rolled steel, achieving a revenue of 63.664 billion RMB, a year-on-year increase of 14.04%[33]. - The company implemented a cost reduction strategy that saved 82.47 million RMB through strategic procurement[34]. - The average monthly coal charge per coke oven reached 28.87 tons, an increase of 0.16 tons per oven year-on-year, setting a historical high[33]. - The company developed 19 new products in 2024, with a total output of 453,500 tons, including 14 first-class products, achieving historical highs in both quantity and output[34]. - The company reduced the inventory turnover days for bulk raw materials from 35 days to less than 20 days, effectively decreasing capital occupation[34]. - The company achieved a net cash flow from operating activities of 1.865 billion RMB in the third quarter[26]. Environmental Initiatives - The company achieved a reduction in pollutant emissions, with particulate matter down by 11.8%, sulfur dioxide by 14.5%, nitrogen oxides by 8.6%, chemical oxygen demand by 2.4%, and dust by 16.8% in 2024[35]. - The company has invested approximately 145.57 million RMB in environmental protection during the reporting period[156]. - The company has complied with environmental regulations, with all pollutant emissions being controlled and meeting government standards[157]. - Ningbo Steel achieved a reduction in pollutant emissions compared to the same period in 2023: particulate matter down 11.8%, sulfur dioxide down 14.5%, nitrogen oxides down 8.6%, dust down 16.8%, and chemical oxygen demand down 2.4%[158]. - Key environmental performance indicators for 2024 include: dust emissions at 0.67 kg/t, SO2 at 0.14 kg/t, NOx at 0.37 kg/t, and COD at 0.006 kg/t, all below the 2024 targets[158]. - Ningbo Steel has a 100% compliance rate for self-monitoring and supervisory monitoring of pollutants, with a solid waste utilization rate of 99.8% and a disposal rate of 100%[158]. Strategic Initiatives - The company emphasizes the importance of risk awareness regarding future plans and development strategies[7]. - The company aims to increase the proportion of electric furnace steel production to 15% by the end of 2025, as part of its strategy to enhance sustainability in the steel industry[39]. - The company is recognized as a "best practice energy efficiency benchmark enterprise" in the steel industry, highlighting its commitment to low-carbon development[36]. - The company is actively involved in the digital economy sector, with ongoing infrastructure projects and a focus on enhancing customer trust and engagement[36]. - The company plans to invest in internet data center (IDC) business to support the growth of the digital economy[98]. - The company aims to enhance competitiveness in steel manufacturing while focusing on high-end and green requirements[98]. Governance and Compliance - The company has established a standardized governance structure consisting of the shareholders' meeting, board of directors, supervisory board, and management team, ensuring independence and compliance in operations[112]. - The company revised and optimized its ESG management system to enhance its social responsibility performance[110]. - The company has implemented strict approval procedures for related party transactions to ensure fair pricing and compliance with regulations[112]. - The company has a complete business system and independent operational capabilities, ensuring direct market engagement[112]. - The company has no instances of fund occupation by controlling shareholders or related parties during the reporting period[112]. - The company has appointed new independent directors to strengthen governance and oversight[119]. Shareholder and Financial Policies - The company has a cash dividend policy that aims for a minimum of 30% of the average distributable profit over the last three years to be distributed in cash[141]. - The company will prioritize cash dividends over stock dividends in profit distribution[142]. - The cash dividend proportion in profit distribution should be at least 80% for mature stages without major capital expenditures[143]. - The company plans to actively adopt cash distribution methods while ensuring sustainable development and operational needs[141]. - The cumulative cash dividend amount over the last three accounting years is approximately 337.72 million RMB, with an average net profit of approximately 12.89 million RMB, resulting in a cash dividend ratio of 2620.80%[149]. Market and Industry Outlook - The steel industry is experiencing high production and costs, with a shift towards green, low-carbon, and high-end transformation, indicating a challenging market environment[38]. - The steel industry is expected to face challenges with no significant improvement in supply-demand dynamics and profitability by 2025[96]. - The company faces market risks due to high raw material prices and low steel prices, and will adapt its production strategies accordingly[103]. - The steel consumption structure is shifting from traditional construction steel to manufacturing steel due to changes in economic structure[96].