SINOSTEEL LNMTC(SH:688119)2025-04-28 16:15Financial Performance - The company reported a net profit attributable to shareholders of -59.10 million RMB for the year 2024, with the parent company achieving a net profit of -56.34 million RMB[7]. - As of December 31, 2024, the consolidated undistributed profits amounted to 140.84 million RMB, while the parent company's undistributed profits were 8.34 million RMB[7]. - The board of directors has proposed no profit distribution or capital reserve transfer to share capital for the year 2024, pending approval at the annual general meeting[7]. - The company's operating revenue for 2024 was CNY 2,187,812,794.33, a decrease of 12.91% compared to 2023[21]. - The net profit attributable to shareholders for 2024 was a loss of CNY 59,096,852.39, representing a decline of 184.38% from the previous year[21]. - The basic earnings per share for 2024 was -CNY 0.0525, down 184.27% from CNY 0.0623 in 2023[22]. - The net cash flow from operating activities for 2024 was CNY 12,742,997.28, an increase from a negative cash flow in 2023[21]. - The company's total assets decreased by 8.10% to CNY 5,209,703,559.62 at the end of 2024 compared to the end of 2023[21]. - The net profit attributable to shareholders, excluding non-recurring gains and losses, was a loss of CNY 113,733,735.49 in 2024, compared to a profit in 2023[21]. - The fourth quarter of 2024 saw a net loss of CNY 53,125,916.32 attributable to shareholders, following a loss in the previous quarters[26]. Operational Risks and Governance - The company has detailed various operational risks in the report, which investors should review for risk awareness[5]. - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties[9]. - The company has not reported any violations in decision-making procedures regarding external guarantees[9]. - The company has not disclosed any special arrangements for corporate governance[10]. - The company has not achieved profitability since its listing[5]. - The company is under continuous supervision by CITIC Securities Co., Ltd. from June 6, 2022, to December 31, 2025[20]. Research and Development - Research and development expenses accounted for 5.78% of operating revenue in 2024, an increase of 0.36 percentage points from 2023[22]. - The company has a strong focus on research and development, with ongoing projects aimed at improving product performance and expanding market reach[43]. - The total R&D investment for the year was approximately ¥126.46 million, a decrease of 7.09% compared to the previous year, while the R&D investment as a percentage of operating income increased by 0.36 percentage points to 5.78%[62]. - The company applied for a total of 114 new patents during the reporting period, with 74 patents granted, bringing the cumulative number of applied patents to 1,011 and granted patents to 582[60]. - The company has developed advanced non-shaped refractory materials for applications in steelmaking, including dry ramming materials and pouring materials, which enhance erosion resistance and durability[42]. Market and Industry Trends - The demand for refractory materials in the steel industry accounts for approximately 60% to 70% of the total market demand, with crude steel production in 2024 expected to be around 100.509 million tons, a year-on-year decrease of 1.7%[52]. - The overall price of corundum raw materials is expected to show a significant upward trend in 2024 due to stricter environmental policies and resource extraction regulations[52]. - The industry is transitioning from "high-speed development" to "green, sustainable high-quality development," with a focus on high-efficiency, long-life, energy-saving, and environmentally friendly refractory materials[50]. - Recent government policies encourage mergers and acquisitions in the refractory materials industry, promoting higher industry concentration and supporting companies with technological and financial advantages[51]. Environmental and Sustainability Efforts - The company has invested approximately 28.51 million yuan in environmental protection funds during the reporting period[188]. - The company was listed as a key pollutant discharge unit in Luoyang City for 2024, focusing on air quality[190]. - The company achieved a four-and-a-half-star rating in the ESG (CASS-ESG 5.0) rating system for the current year[187]. - The company has implemented various pollution control measures, including high-temperature incineration and SCR denitrification for waste gas treatment[192]. - The company has achieved zero wastewater discharge by upgrading wastewater treatment facilities, with treated water used for landscaping[195]. Strategic Partnerships and Market Expansion - The company is focusing on expanding its overseas market presence, particularly in regions such as Africa, the Middle East, and Southeast Asia, in line with the "Belt and Road" initiative[55]. - The company is exploring acquisition opportunities to enhance its product portfolio, targeting a deal valued at $200 million[147]. - A new strategic partnership was announced, expected to generate an additional $100 million in revenue over the next year[148]. - The company aims to enhance its market position through strategic partnerships and potential acquisitions in the refractory materials sector[43]. Corporate Governance and Management - The company held 4 shareholder meetings, 13 board meetings, and 6 supervisory meetings during the reporting period, ensuring compliance with legal and regulatory requirements[129]. - The board of directors has been optimized to include professionals in refractory materials, accounting, law, and management, improving decision-making efficiency[126]. - The company is committed to enhancing risk management and internal controls, with a focus on safety and environmental responsibility[122]. - The company has established specialized committees under the board, including audit, nomination, remuneration, and strategic committees[165]. Financial Management and Performance - The company reported a total revenue of 170,370,000 RMB, with a net profit of 21,118,040.05 RMB, representing a significant increase compared to the previous period[70]. - The company has established a comprehensive salary management system to attract and retain core technical talent, ensuring alignment with market competition and economic performance[174]. - The company has a total of 2,985 retired employees for whom it bears costs, indicating a significant commitment to employee welfare[173]. - The company has not implemented any stock incentive plans or employee shareholding plans during the reporting period[182].