SHANDONG STEEL(SH:600022)2022-03-22 16:00Financial Performance - In 2021, the company achieved a net profit attributable to shareholders of RMB 1.228 billion, an increase of 69.95% compared to RMB 722.66 million in 2020[20]. - The company's operating revenue for 2021 was RMB 110.85 billion, representing a 26.95% increase from RMB 87.32 billion in 2020[20]. - The net cash flow from operating activities was RMB 8.46 billion, up 44.48% from RMB 5.86 billion in 2020[20]. - The basic earnings per share for 2021 was RMB 0.1148, a 71.34% increase from RMB 0.067 in 2020[21]. - The total assets of the company at the end of 2021 were RMB 72.55 billion, a 5.93% increase from RMB 68.49 billion at the end of 2020[20]. - The net profit attributable to shareholders of the listed company was RMB 1.228 billion, representing a year-on-year growth of 69.95%[29]. - The company achieved an annual revenue of 110.85 billion yuan, with a net profit attributable to shareholders of 1.228 billion yuan, marking increases of 26.95% and 69.95% year-on-year[41]. - The company reported a decrease in financing cash flow, totaling -¥3.72 billion, primarily due to loan repayments and dividend distributions[42]. - The company reported a total revenue of 10 billion RMB for the fiscal year 2021, representing a year-over-year increase of 15%[113]. Production and Sales - The company produced 11.87 million tons of pig iron, 14.78 million tons of steel, and 14.76 million tons of steel products in 2021, with respective decreases of 14.24%, 9.18%, and 7.8% compared to 2020[29]. - The company produced 11.87 million tons of pig iron, 14.78 million tons of steel, and 14.49 million tons of steel products, representing declines of 14.24%, 9.18%, and 7.77% respectively compared to 2020[41]. - Domestic steel exports reached 6.69 million tons in 2021, a year-on-year increase of 24.6%[32]. - The average import price of iron ore was USD 164.3 per ton in 2021, an increase of USD 58.5 per ton compared to 2020[32]. - The company has a production capacity of 3 million tons of H-beams annually, making it a leading producer in the country[33]. - The company has a production capacity of 3.5 million tons per year for rebar, with major products including hot-rolled ribbed steel bars and prestressed concrete rebar, receiving multiple quality awards[36]. Research and Development - Research and development expenses surged by 54.55% to ¥1.99 billion, indicating a stronger focus on technological innovation[42]. - The company has established a comprehensive technological innovation system, with over 1,327 valid patents, ranking 5th in the patent innovation index among Chinese steel enterprises in 2021[40]. - The company has developed new steel products for various applications, including high-strength steel for wind power and specialized steel for LNG engineering, enhancing its market presence[40]. - The company is investing 500 million RMB in R&D for new technologies aimed at improving production efficiency[113]. - The number of R&D personnel is 1,658, accounting for 7.55% of the total workforce[59]. Environmental and Sustainability Efforts - The company has received numerous environmental accolades, including being recognized as a "National Environmentally Friendly Enterprise" and a "Green Factory," reflecting its commitment to sustainable development[40]. - The company achieved a reduction in sulfur dioxide and nitrogen oxide emissions by 17.23% and 34.48% respectively compared to the previous year[153]. - The actual emissions of sulfur dioxide, nitrogen oxides, and particulate matter were 674.91 tons, 1922.35 tons, and 1466.84 tons respectively, all below the permitted limits[153]. - The company completed ultra-low emission renovations in 2021, achieving an A-level environmental performance rating for the coking area[154]. - The wastewater treatment facilities at Jinan Steel City Base have a designed capacity of over 730,000 m³/d, with all facilities operating well[154]. - The company has implemented a comprehensive environmental monitoring plan, with 55 sets of air pollution online monitoring systems connected to environmental protection departments[159]. Corporate Governance and Management - The company completed the re-election of its board of directors in April 2021, consisting of 9 members, including 5 independent directors, ensuring compliance with legal requirements[97]. - The company has established a performance evaluation and incentive mechanism for senior management, conducting annual assessments based on their performance and responsibilities[97]. - The total pre-tax remuneration for the board members and senior management during the reporting period amounted to 760.20 million CNY[110]. - The company has implemented a comprehensive internal control system, revising and improving 10 internal control management systems, with 120 regulations effectively operational[148]. - The board of directors held 11 meetings during the year, with 1 in-person meeting and 8 conducted via communication methods[130]. Financial Strategy and Related Party Transactions - The company has made various related party transactions, including RMB 1.15 billion for raw materials with Laiwu Steel Group[174]. - The company’s financial dealings with Shandong Steel Group International Trade Co., Ltd. showed an increase in the ending balance to 102.81 million RMB from an initial balance of 25.75 million RMB[184]. - The company has reported a balance of 1,602.29 million RMB with Shandong Steel Group Rizhao International Trade Co., Ltd. as a new financial engagement[184]. - The company’s financial strategy appears to involve significant reliance on related party transactions to support operational needs[184]. - The company has disclosed various balances with other related entities, showcasing a comprehensive network of financial relationships within the industry[184]. Community Engagement and Social Responsibility - The company donated RMB 500,000 to the disabled persons' federation in Gansu Province for purchasing assistive devices[166]. - The company participated in poverty alleviation activities, claiming 13,096 items worth a total of RMB 2.1434 million[166]. - The company organized a donation campaign for the "Hope House" project, raising a total of RMB 203,000[166]. - The company’s efforts in rural revitalization led to an increase in the minimum annual income of villagers from RMB 3,000 to over RMB 5,000[166].