SHANDONG STEEL(SH:600022)2021-03-30 16:00Financial Performance - In 2020, the company's operating income reached ¥87.32 billion, an increase of 22.82% compared to ¥71.09 billion in 2019[24] - The net profit attributable to shareholders was ¥722.66 million, representing a 24.80% increase from ¥579.06 million in the previous year[24] - The net cash flow from operating activities was ¥5.86 billion, up 29.76% from ¥4.51 billion in 2019[24] - The basic earnings per share increased to ¥0.067, a rise of 26.65% from ¥0.0529 in 2019[25] - The weighted average return on net assets was 3.42%, an increase of 0.59 percentage points compared to 2.83% in 2019[25] - The total assets at the end of 2020 were ¥68.49 billion, a decrease of 1.51% from ¥69.53 billion at the end of 2019[24] - The net assets attributable to shareholders at the end of 2020 were ¥21.13 billion, an increase of 1.86% from ¥20.75 billion at the end of 2019[24] - The company reported a net profit excluding non-recurring gains and losses of ¥639.78 million, an 18.31% increase from ¥540.78 million in 2019[24] - The company achieved a total revenue of RMB 87.317 billion, representing a year-on-year increase of 22.82%[36] - The company produced 13.84 million tons of pig iron, 16.27 million tons of steel, and 16.01 million tons of steel products in 2020[36] Dividend and Shareholder Returns - The company plans to distribute a cash dividend of ¥0.40 per 10 shares, totaling ¥427.95 million, which accounts for 59.22% of the net profit attributable to shareholders[8] - The company has repurchased 247,700,062 shares at a total cost of RMB 319,958,380.34, which accounts for 55.25% of the net profit attributable to the parent company in 2019[90] - The cash dividend policy stipulates that the company should distribute at least 30% of the average distributable profit over the last three years when conditions are met[90] Production and Capacity - The company has a crude steel production capacity of over 15.8 million tons, positioning it as a leading player in the regional market[36] - The company aims to produce 14.25 million tons of pig iron, 16.55 million tons of crude steel, and 16.32 million tons of steel products in 2021, indicating a focus on growth and operational efficiency[42] - The company reported a capacity utilization rate of 78.8% in 2020, a decrease of 1.2% from the previous year[80] Research and Development - The company's research and development expenses rose by 33.29% from 0.97 billion RMB to 1.29 billion RMB, reflecting a commitment to innovation and technology advancement[44] - The company has established a comprehensive technology innovation system with multiple research platforms, collaborating with renowned universities and research institutions to enhance its R&D capabilities[40] - The company plans to increase its R&D investment by no less than 10% in 2021[84] Environmental Initiatives - The company aims to enhance its green development by implementing the "Steel Ultra-Low Emission Control Implementation Plan" in 2021[84] - The company has received multiple environmental accolades, including being named a "National Environmentally Friendly Enterprise" and achieving A-level environmental performance in its coking plant[40] - The company has implemented ultra-low emission standards across all processes at the Rizhao Steel premium base, with dust removal efficiency exceeding 99.9%[134] - The company has established a comprehensive wastewater treatment process achieving zero industrial wastewater discharge at the Rizhao Steel premium base[134] Market and Industry Challenges - The company faced challenges such as high raw material costs and environmental pressures, impacting the overall steel market dynamics in 2020[36] - The company has identified industry and competition risks, as well as macro policy risks, in its forward-looking statements[9] - The company faced significant macro policy risks in 2021, with domestic crude steel production capacity remaining high and an overall supply exceeding demand, leading to structural contradictions in the steel industry[85] Related Party Transactions - The total amount of related party transactions for the company reached 7,206,339.88 million RMB[104] - The company reported a significant increase in related party transactions, with the ending balance for 济钢集团有限公司 rising from 134.60 million to 870.66 million RMB, representing a growth of 546.5%[107] - The company has engaged Xinyong Zhonghe Accounting Firm for auditing services with a fee of 1,200,000 RMB for a duration of 2 years[96] Social Responsibility - The company is actively involved in social responsibility initiatives, including targeted poverty alleviation programs[126] - The company engaged in charitable activities, raising approximately 1.8796 million RMB for pandemic relief and 204,000 RMB for the "Hope House" children's care project[126] - The company supported 82 impoverished students with a total funding of 367,000 RMB for educational assistance[129] Governance and Management - The company has maintained a stable management structure with key personnel holding significant positions since 2018[165] - The company’s management team includes experienced professionals from various sectors, enhancing its operational capabilities[164] - The company continues to focus on enhancing its governance structure through independent directors and experienced management[164] Financial Instruments and Bonds - The company issued bonds with a total balance of 13.55 billion RMB for the first phase and 20.00 billion RMB for the first phase of green bonds, with interest rates of 4.85% and 5.5% respectively[194][199] - The company maintained an AAA credit rating for its bonds and AA+ for its long-term credit rating, with stable outlooks from rating agencies[199]