BYIS(SH:600581)2025-04-25 12:05Financial Performance - The company's operating revenue for 2024 was CNY 18.67 billion, a decrease of 18.73% compared to CNY 22.97 billion in 2023[21]. - The net profit attributable to shareholders for 2024 was a loss of CNY 1.75 billion, compared to a loss of CNY 1.16 billion in 2023[22]. - The cash flow from operating activities for 2024 was CNY 1.59 billion, an improvement from a negative cash flow of CNY 572.52 million in 2023[22]. - The total assets at the end of 2024 were CNY 29.82 billion, an increase of 1.93% from CNY 29.25 billion at the end of 2023[22]. - The company reported a cumulative loss of CNY 1.58 billion for 2024, leading to a proposed decision not to distribute profits or increase capital reserves[6]. - The net loss for 2024 was 1.752 billion RMB, an increase in loss of 589 million RMB compared to the previous year[32]. - The weighted average return on equity was -189.70% in 2024, compared to -47.97% in 2023[23]. - The basic earnings per share for 2024 was -1.135 RMB, compared to -0.76 RMB in 2023[23]. Industry Challenges - The steel industry is facing severe challenges in 2024, including insufficient downstream demand and rising raw material prices, prompting the company to adopt a strategy focused on "Four Modernizations" and "Four Principles" to mitigate losses[10]. - The steel industry in China faced a significant profit decline, with total profits of key enterprises dropping by 50.3% to 42.9 billion yuan, and a sales profit margin of only 0.71%[36]. - The steel industry is experiencing a "long-term downward cycle" with a projected demand decline of 5.4% in 2024, following four consecutive years of negative growth[37]. - The company faced multiple pressures including supply-demand imbalance and rising production costs, leading to compressed profit margins[51]. Operational Adjustments - The company aims to navigate the complex market conditions characterized by weak demand and low prices through strategic adjustments and operational improvements[10]. - The company is focusing on optimizing its product structure and enhancing resource self-sufficiency to improve operational efficiency[42]. - The company is committed to optimizing performance management and enhancing marketing system capabilities to drive sales transformation[33]. - The company is focusing on enhancing governance capabilities and promoting high-quality development through reforms and innovation[32]. Environmental Initiatives - The company is committed to deepening green metallurgy and leading low-carbon technology development[82]. - The company achieved a carbon emission target of 2.01 tCO2/t steel, surpassing the planned target of 2.04 tCO2/t steel[36]. - The company implemented 20 environmental projects, all of which were completed and put into use, achieving an A-level environmental performance[42]. - The company has established a comprehensive environmental monitoring plan, covering air quality, noise, and wastewater, ensuring compliance with local standards[140]. - The company reduced carbon emissions by 79,271 tons in 2024 through various measures, including the use of clean energy and advanced metallurgical techniques[144]. Research and Development - The company has 1,557 R&D personnel, an increase of 8% year-on-year, with 479 involved in R&D activities, representing 10.78% of the total[44]. - The total R&D expenditure amounted to CNY 700,953,910.08, representing 3.75% of the total revenue, with no capitalized R&D costs[59]. - The company applied for 262 patents, including 132 invention patents, achieving a 50.4% share of total applications[44]. - The company is developing new products for the renewable energy sector, including high-strength steel for wind and solar applications, to meet market demands[45]. Governance and Management - The company has received a standard unqualified audit report from Tianjian Accounting Firm for the fiscal year[5]. - The company is focusing on enhancing its governance structure to improve operational capabilities and market competitiveness[85]. - The company has established a comprehensive internal control management system, ensuring all departments and subsidiaries are included in self-assessment and supervision[127]. - The company has a robust governance structure and internal control system in place, with a focus on risk management and compliance with regulatory requirements[127]. Shareholder Relations - The company has established a clear and stable dividend mechanism, allowing minority shareholders to express their opinions and ensuring their rights are respected[119]. - The company is committed to maintaining transparency with shareholders regarding stock repurchase plans and executive compensation adjustments[99]. - The company has outlined a shareholder return plan for the next three years (2024-2026)[107]. - The company has committed to avoiding conflicts of interest with its controlling shareholder[158]. Financial Transactions and Related Party Transactions - The total amount of related party transactions during the reporting period reached 12,980,163,289.15 CNY[171]. - The company purchased raw materials and services from its controlling shareholder and subsidiaries, including 4,085,957,360.28 CNY for ore, which accounted for 76% of the total related transactions[171]. - The company emphasized the importance of fair pricing in related transactions, adhering to market prices and avoiding unreasonable conditions[171]. - The company will ensure that all transactions with Ba Yi Steel are conducted at market fair prices, avoiding any actions that could harm Ba Yi Steel's interests[154]. Future Outlook - Future outlook indicates a projected revenue growth of 10% for the next fiscal year, driven by market expansion strategies[103]. - The company plans to launch a new product line in Q2 2025, targeting a 15% increase in sales volume[104]. - The company aims to produce 488,000 tons of iron and 571,000 tons of steel in 2025, with an anticipated revenue of 19.3 billion RMB[84]. - The company plans to enhance its information disclosure practices, having issued 78 announcements throughout the year[92].