SHANDONG STEEL(SH:600022)2025-04-29 11:40Financial Performance - In 2024, Shandong Steel reported operating revenue of ¥82.09 billion, a decrease of 9.26% compared to ¥90.48 billion in 2023[23]. - The net profit attributable to shareholders of the listed company for 2024 was -¥2.26 billion, compared to -¥399.60 million in 2023[23]. - The total assets of Shandong Steel at the end of 2024 were ¥65.31 billion, down 2.16% from ¥66.75 billion in 2023[24]. - The net assets attributable to shareholders of the listed company decreased by 11.11% to ¥18.78 billion in 2024 from ¥21.13 billion in 2023[24]. - The basic earnings per share for 2024 was -¥0.2129, compared to -¥0.0373 in 2023[25]. - The weighted average return on net assets for 2024 was -11.28%, a decrease of 9.43 percentage points from -1.85% in 2023[25]. - The company faced significant challenges in 2024, leading to a substantial decline in both revenue and profit margins compared to previous years[23]. - The company reported a net cash flow from operating activities improved to ¥202.49 million in 2024, a significant recovery from -¥1.21 billion in 2023[23]. Production and Operations - The company produced 10.89 million tons of pig iron and 14.94 million tons of crude steel during the reporting period, achieving significant efficiency improvements[35]. - The company reduced its comparable steel cost by ¥86.66 per ton, with procurement costs improving by ¥30 per ton compared to 2023[36]. - The overseas market saw an increase in exports to 1.18 million tons, a rise of 31.96 million tons or 37% compared to 2023[35]. - The company produced 1,483.22 million tons of major products, with a sales volume of 1,571.27 million tons, reflecting a year-over-year decrease of 2.69% in sales volume[59]. - The production of cold-rolled steel reached 2,921,481.90 tons, with sales of 2,931,216.09 tons, generating revenue of CNY 1,124.85 million[74]. - The production of hot-rolled steel was 11,910,734.10 tons, with sales of 12,781,455.90 tons, resulting in revenue of CNY 4,599.28 million[74]. Research and Development - R&D investment reached ¥2.708 billion, accounting for 3.30% of total revenue, focusing on high-value-added products[37]. - The company has established a comprehensive technology innovation system with 1,662 valid patents, including 979 invention patents, and received the National Science and Technology Progress Second Prize for a key technology project[52]. - Research and development expenses totaled CNY 270,779.22 million, accounting for 3.30% of total revenue[66]. - The number of R&D personnel is 1,747, making up 10.90% of the total workforce[67]. Environmental and Sustainability Efforts - The company aims to enhance its environmental performance with the "Environmental Performance A Three-Year Action Plan (2024-2026)" to improve energy efficiency and reduce emissions[53]. - The company invested CNY 1.172 billion in environmental protection during the reporting period, ensuring compliance with pollution discharge standards[140]. - The company achieved a 100% operational rate of environmental protection facilities and a 100% compliance rate for pollutant discharge during the reporting period[141]. - The total emissions of major pollutants from the Steel City base were 2,499.71 tons for particulate matter, 676.66 tons for SO2, and 1,795.61 tons for NOx, all below government-approved discharge limits[141]. - The company is focusing on reducing its overall emissions by implementing new technologies and processes in its operations[144]. - The company has committed to high-level environmental protection and sustainable development, aligning with national pollution control regulations[152]. Governance and Management - The governance structure includes a board of 9 members, with 4 independent directors, ensuring compliance with legal requirements and effective oversight of management[95]. - The company has established a system for managing insider information to ensure compliance with regulations and protect sensitive data[96]. - The company has implemented a comprehensive internal control system, with 60 internal control management regulations established or revised in 2024, resulting in a total of 183 effective operational regulations[137]. - The company has maintained a transparent and efficient governance structure, with no significant deficiencies in internal controls reported[138]. - The company’s governance structure is being reinforced through the election of new independent directors and supervisors, enhancing oversight capabilities[112]. Market Position and Strategy - The company ranks 221st in the 2024 Fortune China 500 list, indicating its significant position in the industry[44]. - The company aims to enhance its competitive capabilities through a transformation framework consisting of 1 goal, 6 capabilities, and 9 transformation paths[33]. - The company is focusing on expanding its market presence and optimizing its product structure to enhance competitiveness in the steel industry[54]. - The company is exploring opportunities in international markets to diversify its revenue streams and reduce dependency on domestic sales[104]. - The company is actively pursuing strategic partnerships and potential acquisitions to strengthen its market position and drive growth[104]. Financial Management - The company has reduced financial expenses by 28.61% to CNY 28,175.63 million, due to a significant reduction in interest-bearing debt and financing rates[55]. - The company has maintained a strong financial position with a significant amount of deposits and no outstanding loans, reflecting effective financial management strategies[176]. - The total amount of credit business with Shandong Steel Group is 875,000, with an actual occurrence of 36,791[178]. - The company has a total of 218,729 common stock shareholders as of the end of the reporting period, an increase from 212,887 in the previous month[188]. Employee Engagement and Development - The total number of employees in the parent company is 9,366, and the total number of employees in major subsidiaries is 6,665, resulting in a combined total of 16,031 employees[126]. - The company implements a differentiated salary system based on job responsibilities, with executives and middle management on a target responsibility wage system, while other employees follow a performance-based wage system[128]. - The company has initiated an employee stock ownership plan at its subsidiary Rizhao Company to combine short-term and long-term incentives[128]. Future Outlook - In 2025, the company plans to produce 10.49 million tons of pig iron, 15.33 million tons of crude steel, and 15.89 million tons of finished products, aiming for a turnaround to profitability[87]. - The company anticipates a reduction in steel exports in 2025 due to increased global trade barriers and anti-dumping measures[83]. - The company is focusing on digital transformation projects to enhance operational capabilities and support future growth[116]. - The company is committed to improving its risk management and audit processes as outlined in the 2023 annual report[115].