Baosteel(SH:600019)2022-04-28 16:00Dividend Policy - The company plans to distribute a cash dividend of 0.60 CNY per share for the fiscal year 2021, with a total expected dividend payout of 13,092,196,054.00 CNY, accounting for 55.40% of the net profit attributable to shareholders [2]. - In the second half of 2021, the company intends to distribute an additional cash dividend of 0.25 CNY per share, with an estimated total payout of 5,445,576,578.75 CNY, representing 63.66% of the net profit for that period [2]. - The company emphasizes a long-term cash dividend policy, highlighting its commitment to shareholder returns [2]. - The company has a long-term cash dividend policy, ensuring that annual cash dividends are no less than 50% of the audited net profit attributable to shareholders [155]. - The cash dividend payout ratio for the 2021 fiscal year is 137.45% of the net profit on the corporate report, indicating a strong commitment to shareholder returns [157]. Financial Performance - The company's operating revenue for 2021 was CNY 364,349 million, representing a 29.4% increase compared to CNY 281,519 million in 2020 [15]. - The net profit attributable to shareholders for 2021 was CNY 23,632 million, an 86.1% increase from CNY 12,695 million in 2020 [15]. - The net cash flow from operating activities reached CNY 59,869 million, a significant increase of 112.7% compared to CNY 28,153 million in 2020 [16]. - The total assets at the end of 2021 were CNY 380,398 million, reflecting a 6.3% increase from CNY 357,781 million at the end of 2020 [16]. - The basic earnings per share for 2021 was CNY 1.07, an increase of 87.7% compared to CNY 0.57 in 2020 [17]. - The weighted average return on equity for 2021 was 12.36%, an increase of 5.34 percentage points from 7.02% in 2020 [17]. - The company's total profit for 2021 reached a historical high of 35.24 billion RMB, representing a year-on-year increase of 59.7% [22]. - The company reported a non-recurring profit and loss total of 1.07 billion RMB in 2021, down from 2.61 billion RMB in 2020 [20]. Market and Production - The company sold 46.571 million tons of commodity billets in 2021, achieving total revenue of 365.34 billion RMB and a total profit of 30.71 billion RMB [23]. - The average price of iron ore in 2021 was 158.6 USD, an increase of 45.7% year-on-year, while the average price of coking coal was 2,046 RMB per ton, up 72% year-on-year [22]. - The steel industry in China achieved a gross steel output of 1.03 billion tons in 2021, a decrease of 3% year-on-year due to "dual control" policies [22]. - The company achieved a profit margin of 13.6% for steel products in 2021, up from 11.6% in 2020, an increase of 2.0 percentage points [30]. - The company’s sales volume of advantageous products reached 12.446 million tons in 2021, up from 10.68 million tons in 2020 [30]. Strategic Initiatives - The company plans to continue expanding its market presence and invest in new technologies to enhance production efficiency [19]. - The company is focusing on high-tech, high-value-added products, including carbon steel plates and pipes, which are widely used in various industries [27]. - The company is actively exploring low-carbon metallurgy technologies and has made breakthroughs in hydrogen metallurgy demonstration projects [24]. - The company aims to respond to national and industry calls for achieving carbon neutrality ahead of schedule, in line with the "14th Five-Year Plan" for the raw materials industry [26]. - The company plans to invest CNY 29.89 billion in fixed assets in 2022, focusing on optimizing product structures and enhancing efficiency across various bases [110]. Risk Management - The company faced challenges in 2022 due to the ongoing impact of the COVID-19 pandemic and the escalation of the Russia-Ukraine conflict, leading to a complex and uncertain external environment [3]. - The company has strengthened its policy analysis and macroeconomic trend assessments to effectively mitigate significant risks in the steel industry [3]. - The company has established a comprehensive risk management system to address potential risks related to carbon neutrality and market dynamics [112]. Research and Development - The company’s R&D expenses for 2021 were 113.7 billion CNY, reflecting a 29.6% increase from 87.7 billion CNY in 2020 [30]. - The company has 289 PhD researchers and 1,498 master's degree holders in its R&D team [60]. - The company launched thirteen new products, including B23HS075 and B96SiQL, achieving global firsts [63]. - Ongoing research and development efforts are focused on advanced materials, with a budget allocation of $100 million for innovation in the next fiscal year [126]. Environmental Initiatives - The company has committed to strict pollutant discharge regulations, maintaining compliance with local environmental protection standards [178]. - The company has established pollution prevention facilities and is actively managing ecological and environmental protection efforts [174]. - The company has completed a total of 35 ultra-low emission projects by the end of December 2021, including upgrades to the sintering main flue gas SCR denitrification system and the closed transformation of raw material yards [175]. - The company has achieved a 100% compliance rate for wastewater quality, with the coking wastewater discharge volume consistently below 80m³/h, resulting in "regional zero discharge" of coking wastewater [175]. Governance and Management - The company has committed to maintaining transparency and compliance with regulatory requirements in its governance practices [117]. - The company has established a performance evaluation and compensation management system for senior management, linking incentives closely to company performance [168]. - The company has seen changes in its board composition, with new directors appointed in early 2021 [138]. - The company has been actively expanding its management team, with several new appointments in 2021, including vice general managers and directors [138]. Future Outlook - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 12% [128]. - The company plans to enhance its digital transformation strategy, investing 1 billion CNY in digital tools and platforms [130]. - The company aims to improve operational efficiency, targeting a 5% reduction in costs through process optimization [128]. - Future outlook remains positive, with anticipated EBITDA growth of 12% driven by increased demand and operational improvements [126].