Baosteel(SH:600019)2022-08-30 16:00Dividend Distribution - The company plans to distribute a cash dividend of no less than 0.18 CNY per share for the first half of 2022, amounting to approximately 3.99 billion CNY, which represents 51.19% of the net profit attributable to shareholders[4]. - The board of directors has approved a change in the dividend distribution cycle from annual to semi-annual, starting from 2021[4]. - The company is committed to maintaining a long-term cash dividend policy to reward shareholders[4]. - The report indicates that the company is under pressure from rising energy prices and environmental regulations, which may impact future operations[6]. - The company has reiterated its focus on enhancing shareholder returns through consistent dividend payouts[4]. - The proposed cash dividend for the first half of 2022 is CNY 0.18 per share (including tax), totaling approximately CNY 3,988,183,916.70, which accounts for 51.19% of the net profit attributable to shareholders of the parent company[75]. - The total cash dividend for the first half of 2022 is expected to be CNY 39.88 billion, a significant decrease from CNY 131.86 billion in 2021[75]. - The cash dividend for the first half of 2022 represents 39.95% of the net profit on the legal entity's report[75]. - The company has maintained a consistent approach to shareholder returns, emphasizing long-term cash dividends[74]. - The company's board of directors has proposed a profit distribution plan that awaits approval from the shareholders' meeting[75]. Financial Performance - The company's operating revenue for the first half of the year was RMB 183,655 million, a slight increase of 0.2% compared to RMB 183,327 million in the same period last year[16]. - Net profit attributable to shareholders decreased by 48.4% to RMB 7,791 million from RMB 15,089 million year-on-year[16]. - Basic earnings per share dropped by 48.5% to RMB 0.35 from RMB 0.68 in the previous year[17]. - The total profit for the second quarter was RMB 5,710 million, an increase of 11.0% compared to the previous quarter[22]. - The company achieved a cost reduction of RMB 5,623 million in the first half of the year, with significant savings in material usage and procurement optimization[22]. - The company's total assets rose by 7.1% to RMB 407,430 million from RMB 380,398 million at the end of the previous year[17]. - The weighted average return on net assets decreased by 3.88 percentage points to 4.02% from 7.90% year-on-year[17]. - The gross profit margin decreased by 5.7 percentage points to 10.2% compared to the same period last year[33]. - The company reported a net profit of 88.5 million RMB, down from 168.7 million RMB in the same period last year, a decrease of 80.2 million RMB[37]. - The company achieved iron production of 23.1 million tons and steel production of 25.2 million tons, with a total profit of 10.86 billion yuan during the reporting period[27]. Market and Economic Conditions - The global economic situation remains complex and severe, with the steel industry facing a new downward cycle influenced by factors such as the COVID-19 pandemic and rising raw material prices[6]. - The company faces risks from global economic uncertainties, geopolitical conflicts, and domestic pandemic issues, which may impact future performance and require enhanced risk management strategies[68]. - The company expects a slight rebound in steel prices and market demand in the fourth quarter as domestic pandemic controls improve and national growth policies are implemented[29]. Environmental Initiatives - The company emphasizes the importance of green and low-carbon development as a key task for the future of the steel industry[6]. - The company plans to continue its green low-carbon initiatives, including the construction of a zero-carbon demonstration plant with a million-ton hydrogen-based vertical furnace[25]. - The company reported emissions of 3,284.5 tons of particulate matter, 4,095.4 tons of sulfur dioxide, and 10,899.8 tons of nitrogen oxides in the first half of 2022, all within the permitted limits[84]. - The company has established a complete management system for environmental protection, adhering to ISO14001 standards[91]. - The company is actively promoting ultra-low emission transformation projects, with 18 new projects initiated in Zhanjiang Steel, of which 1 has been completed[90]. Innovation and Product Development - The company is focusing on high-end product development, including ultra-high-strength steel and oriented silicon steel, to meet the demands of high-end manufacturing industries[20]. - The company launched 6 new products globally in the first half of the year and made breakthroughs in 23 key technologies, including the "non-oriented silicon steel surface texture control technology"[23]. - The company maintains a strong commitment to innovation and has established a comprehensive marketing and processing service network globally[20]. Debt and Financing - The company’s debt financing scale increased by 77.4 million RMB, compared to a decrease of 27.7 million RMB in the previous year, resulting in a net increase of 105.1 million RMB[42]. - The company’s long-term borrowings increased by 107.8% to 30,699 million RMB, taking advantage of favorable market conditions for low-interest loans[43]. - The company has established a debt repayment plan based on future cash flows from operating activities[148]. - The company reported a loan balance of 6,007 million RMB at the end of the reporting period[129]. Related Party Transactions - The company reported a total sales revenue of 17,564 million RMB from related party transactions, accounting for 9.6% of the total operating income for the reporting period[122]. - The total amount of purchases from related parties was 25,262 million RMB, representing 15.4% of the total operating costs for the reporting period[122]. - The financial company provided loans totaling 10.74 billion RMB to the group and its subsidiaries, with an outstanding loan balance of 6.01 billion RMB[124]. Shareholder and Equity Information - The company issued 374,271,000 new shares, increasing the total number of shares to 22,268,411,550[135]. - The total number of ordinary shareholders reached 320,303 by the end of the reporting period[139]. - China Baowu Steel Group Co., Ltd. held 10,813,395,355 shares, accounting for 48.56% of the total shares[140]. - The company’s total share capital remained unchanged at 22,268,411,550 shares after the unlocking of restricted shares[137]. Legal and Compliance Matters - The company is involved in three lawsuits initiated by Nippon Steel Corporation, claiming patent infringement related to electromagnetic steel plates supplied to Toyota, with a total claim amount of approximately JPY 20.43 billion[121]. - The company has confirmed that it will not process the transfer of property ownership for certain real estate until legally permitted, ensuring that subsidiaries can continue to use the properties without disputes[106]. - The company has pledged to compensate any losses incurred by its subsidiaries due to legal issues related to land use rights and property ownership[108]. Financial Reporting and Accounting - The financial statements are prepared based on the assumption of going concern, with no significant doubts about the company's ability to continue operations[187]. - The company follows the accounting standards issued by the Ministry of Finance and has specific accounting policies tailored to its operational characteristics[188]. - The consolidation of financial statements is based on control, defined as the ability to influence returns through participation in relevant activities of the investee[197].