Baosteel(SH:600019)2021-04-26 16:00Financial Performance - The company's operating revenue for 2020 was RMB 283,674 million, a decrease of 2.72% compared to 2019[17]. - The net profit attributable to shareholders of the listed company was RMB 12,677 million, reflecting a slight increase of 0.91% year-on-year[17]. - The net cash flow from operating activities was RMB 28,084 million, down 15.09% from the previous year[17]. - The total assets at the end of 2020 amounted to RMB 356,225 million, representing a 2.97% increase from 2019[17]. - The basic earnings per share for 2020 was RMB 0.57, up 1.79% from RMB 0.56 in 2019[18]. - The weighted average return on net assets was 7.03%, a decrease of 0.06 percentage points compared to the previous year[18]. - The company achieved a total profit of 16.02 billion CNY in 2020, maintaining a leading position in the industry[31]. - The company reported a net profit of RMB 4,818 million in Q4 2020, showing a strong performance in the last quarter[21]. - The company reported a net profit margin of 12% for the fiscal year, an increase from 10% in the previous year[191]. Dividends and Shareholder Returns - The proposed cash dividend for 2020 is CNY 0.30 per share, totaling approximately CNY 6.68 billion, which accounts for 52.70% of the net profit attributable to shareholders[4]. - The company plans to distribute cash dividends of no less than 50% of the audited consolidated net profit attributable to shareholders each year[4]. - The company reported a commitment to long-term cash dividends, emphasizing shareholder returns[4]. - The total cash dividend for 2020 is projected to be CNY 66.81 billion, an increase from CNY 62.36 billion in 2019[103]. - The cash dividend payout ratio for 2020 is 62.81% of the net profit according to the corporate financial statements[103]. Environmental Compliance and Sustainability - The company faced increasing environmental compliance risks due to new environmental laws and regulations, necessitating accelerated efforts in ultra-low emissions and environmental protection initiatives[6]. - The company aims to achieve 100% compliance with online emissions standards for key pollution sources as part of its sustainable development initiatives[46]. - The company is committed to sustainable development and has integrated ecological protection into its business model[155]. - The company has implemented various environmental protection projects, including the installation of gas purification devices and low-emission modifications, with a focus on achieving a 91% compliance rate for organized low emissions at Zhanjiang Steel by the end of 2020[161]. - The company has reported a total fine of 498,000 yuan due to environmental violations in 2020, emphasizing the importance of process control and compliance[159]. Risk Management - The company has identified 19 key risk items across eight major topics, with a total of 41 focus areas for risk management in 2020[98]. - The company disclosed 40 risk events throughout 2020, with a focus on enhancing risk monitoring and response mechanisms[98]. - The ongoing global pandemic remains a significant risk factor for 2021, affecting supply chain security and raw material transportation[99]. - The management emphasized the importance of risk management strategies, particularly in response to market volatility, to maintain stable growth[194]. Investments and Acquisitions - The company and its subsidiary invested a total of 16.6 billion RMB in establishing Ouyie Industrial Co., holding a 41.5% stake, with the company contributing 13.6 billion RMB for a 34% stake[34]. - The company invested 2.45 billion RMB for a 49% stake in Baowu Raw Material Supply Co., which has a registered capital of 5 billion RMB[34]. - The company completed the merger of its financial subsidiary, increasing its registered capital from 1.4 billion RMB to 2.6 billion RMB, with a 56.91% stake held by the company and its subsidiaries[36]. - The company is considering strategic acquisitions to enhance its market position, with a budget of 3 billion RMB earmarked for potential deals[193]. Research and Development - The total R&D investment was 87.26 million RMB, accounting for 3.08% of total revenue, with 1,408 R&D personnel representing 2.95% of the total workforce[60]. - The company is investing 1 billion yuan in R&D for advanced steel processing technologies over the next five years[191]. - The company launched 10 new products globally for the first time and achieved breakthroughs in 23 key technologies[33]. - New product development includes the launch of a low-carbon steel product line, expected to contribute an additional 5 billion yuan in revenue by 2022[192]. Market Performance and Strategy - The company is navigating the ongoing impacts of the COVID-19 pandemic on global economic growth and recovery[6]. - The company aims to expand its market presence in developing countries, with sales in these regions accounting for 62% of total sales in the Euro-African market[55]. - The company is focused on expanding its market presence and enhancing its operational efficiency through strategic initiatives[197]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% market share in the region within the next three years[191]. Corporate Governance - The board of directors and management confirmed the accuracy and completeness of the annual report, assuming legal responsibility for its content[2]. - The company has not reported any major financial misstatements or errors during the reporting period, ensuring the integrity of its financial reporting[116]. - The company has not faced any penalties or corrective actions against its directors, supervisors, or senior management during the reporting period, reflecting good governance practices[119]. - The company’s board of directors includes members with extensive experience in steel production and corporate governance[190]. Shareholder Structure - The total share capital of the company at the end of the reporting period is 22,269,447,650 shares, with 113,465,025 shares subject to trading restrictions and 22,155,982,625 freely tradable shares[169]. - China Baowu transferred 486,753,644 shares of the company to Shougang Group in January 2020, reducing its ownership to 48.56%[176]. - The company has no known related party relationships among the top shareholders, except for WISCO Group being a wholly-owned subsidiary of China Baowu Steel Group[179].