SHANDONG STEEL(SH:600022)2022-08-30 16:00Financial Performance - The company's operating revenue for the first half of 2022 was ¥53.55 billion, a decrease of 8.98% compared to ¥58.83 billion in the same period last year[21]. - Net profit attributable to shareholders was ¥1.10 billion, down 47.76% from ¥2.10 billion year-on-year[21]. - The net profit after deducting non-recurring gains and losses was ¥981.13 million, a decline of 53.26% compared to ¥2.10 billion in the previous year[21]. - The net cash flow from operating activities was ¥5.25 billion, a decrease of 23.29% from ¥6.85 billion in the same period last year[21]. - Basic earnings per share for the first half of 2022 were ¥0.1027, down 47.74% from ¥0.1965 in the same period last year[21]. - The weighted average return on net assets was 4.89%, a decrease of 4.59 percentage points from 9.48% year-on-year[21]. - The company reported a total comprehensive income of CNY 1.10 billion for the first half of 2022, compared to CNY 1.09 billion in the same period of 2021[143]. - The company reported a profit distribution of CNY -427,953,982.16, indicating a reduction in retained earnings during the period[146]. Assets and Liabilities - The total assets at the end of the reporting period were ¥73.05 billion, an increase of 0.69% from ¥72.55 billion at the end of the previous year[21]. - The total liabilities increased to ¥20,504,531,219.99, up 8.7% from ¥18,874,582,952.22 in the previous year[125]. - Total current assets amount to 19.86 billion, a slight decrease from 20.09 billion at the end of the previous year[118]. - Total liabilities increased to CNY 40,855,415,172.53, up from CNY 39,951,961,029.23, reflecting a growth of approximately 2.26% year-over-year[121]. - Current liabilities totaled CNY 34,027,664,965.37, slightly down from CNY 34,187,754,334.31, indicating a decrease of about 0.47%[121]. - Non-current liabilities rose to CNY 6,827,750,207.16, compared to CNY 5,764,206,694.92, marking an increase of approximately 18.43%[121]. Production and Operations - In the first half of 2022, the company produced 6.271 million tons of pig iron, 7.5728 million tons of crude steel, and 7.8687 million tons of finished steel, representing year-on-year declines of 5.67%, 9.44%, and 4.87% respectively[31]. - The company’s total operating costs for the first half of 2022 were approximately ¥31.81 billion, down 6.0% from ¥33.81 billion in the same period of 2021[134]. - The company generated cash inflow from sales of goods and services amounting to approximately ¥47.17 billion, an increase of 2.6% from ¥45.98 billion in the first half of 2021[139]. Research and Development - The company held a total of 1,861 valid patents by the end of June 2022, including 961 invention patents, ranking among the top in the steel industry for patent innovation capability[28]. - The company’s research and development expenses decreased by 22.14% to 827.87 million RMB, attributed to some projects being in the initial research phase[34]. - Research and development expenses decreased to ¥827,865,893.32, down 22.1% from ¥1,063,248,101.22 in the previous year[130]. Environmental Performance - The company is actively pursuing green and low-carbon development strategies to improve its operational efficiency and sustainability[28]. - The company emitted 259 tons of sulfur dioxide, 741 tons of nitrogen oxides, and 773 tons of particulate matter[57]. - The industrial water reuse rate reached 97.52%, with COD emissions at 0.01 kg/ton of steel and particulate matter emissions at 0.26 kg/ton of steel[58]. - The company has implemented a zero discharge policy for industrial wastewater, utilizing advanced treatment technologies[58]. - The company has achieved a significant reduction in carbon emissions, with a projected decrease of 1% in carbon intensity by 2022 compared to 2020 levels, and an expected 5% reduction by 2025[69]. Financial Ratios and Metrics - The company's current ratio is 0.58, a decrease of 1.07% compared to the previous year's end of 0.59[114]. - The quick ratio is reported at 0.39, down 5.22% from 0.41 year-over-year[114]. - The debt-to-asset ratio increased to 55.93%, up 0.86% from 55.07% at the end of the previous year[114]. - Cash interest coverage ratio improved to 24.12, an increase of 36.32% from 17.69 in the previous year[114]. Related Party Transactions - The total amount of related party transactions for purchasing steel products was 452,364.98 thousand RMB[75]. - The company has a related party balance with Shandong Steel Group Co., Ltd. of 8,929.28 million RMB at the end of the period, down from 46,572.79 million RMB at the beginning[88]. - The company has provided funding to related parties, with the initial balance for Laiwu Steel Group Mining Co., Ltd. at 4.26 million RMB, decreasing to 1.82 million RMB by the end of the period[88]. Community Engagement - The company provided over 6,700 RMB in aid and materials to the impoverished Maohutong Village during the Spring Festival[72]. - The company raised over 10,409 RMB in donations for children in difficult situations through youth volunteer initiatives[72]. - The company organized volunteer activities to clean up environmental waste, involving over 50 young team members in beach cleanup efforts[68].