HZIS(SH:600126)2019-04-11 16:00Financial Performance - In 2018, the company achieved a net profit attributable to shareholders of RMB 1,937,662,585.51, representing a 7.90% increase compared to RMB 1,795,744,461.39 in 2017[4] - The company's operating revenue for 2018 was RMB 26,449,774,549.29, a decrease of 5.05% from RMB 27,855,812,859.15 in 2017[17] - The net profit after deducting non-recurring gains and losses was RMB 1,885,506,815.56, which is a 9.08% increase from RMB 1,728,596,457.67 in 2017[17] - The company reported a net profit of RMB 120,877,302.25 for the parent company, but the distributable profit was negative at RMB -275,062,344.20, leading to no dividend distribution for 2018[4] - The total profit for the year was 82.88 million RMB, which is an increase of 19.27% compared to the previous year[27] - The company achieved a historical high in operating performance, completing production and operational goals under the strategy of "steady progress and quality improvement" in 2018[25] - The company achieved a net profit attributable to shareholders of approximately ¥1.94 billion, marking its best historical performance[66] - The company reported a net profit decrease of ¥98,698,217.46 for the year 2018, impacting the equity attributable to shareholders by the same amount[72] Cash Flow and Assets - The net cash flow from operating activities increased by 36.71% to RMB 2,437,596,710.24 in 2018, compared to RMB 1,783,058,886.42 in 2017[17] - Cash and cash equivalents at the end of the period reached ¥5,779,222,320.15, accounting for 22.39% of total assets, an increase of 37.18% compared to the previous period[43] - The company’s cash flow from operating activities increased by 36.71% to 2.44 billion RMB[29] - The total cash inflow from investment activities was CNY 3,421,914,775.55, while the cash outflow was CNY 3,922,992,769.69, resulting in a net cash flow of -CNY 501,077,994.14[146] - The company reported a significant increase in cash received from investment recoveries, totaling CNY 2,906,560,000.00, compared to CNY 1,330,000,000.00 in the previous year, marking a 118.4% increase[146] - Total assets rose to ¥25,808,040,616.33, reflecting a 5.52% increase compared to ¥24,456,948,675.27 in the previous year[18] - The company’s total equity increased to CNY 18,701,377,232.89 from CNY 16,740,473,886.29, reflecting growth in shareholder value[139] Production and Operations - The company produced 4.4253 million tons of hot-rolled steel coils in 2018, with iron water costs at ¥2,079, which is ¥53 lower than the industry average[22] - The company produced 155.38 million tons of high-quality specialty products, marking a new high in both output and profitability for these products[26] - The company produced 4.2873 million tons of pig iron, 4.5527 million tons of slab, and 4.4253 million tons of steel coil, exceeding the annual production targets[28] - The company’s hot-rolled coil cost was ¥2,833, which is ¥93 lower than the industry average[22] - The company completed over 200 various tenders for construction projects, including the Wenzhou Central Sewage Treatment Project, which achieved its 400,000-ton water supply target six months ahead of schedule[26] Research and Development - The company’s R&D expenses increased by 33.55% to 370.34 million RMB, indicating a focus on innovation and technology development[29] - The company successfully developed 19 new products, with a total new product output of 42.11 million tons, achieving 250% of the annual target for engineering machinery steel[26] - The R&D investment totaled approximately 370.34 million CNY, representing 1.40% of total operating revenue, with a year-on-year growth of 33.55%[38][39] Environmental and Compliance - The company maintained stable operation and compliance with environmental standards, ensuring that all major pollutant emissions were within controlled limits[26] - The company reported zero major environmental incidents and zero administrative penalties in 2018[87] - The company emphasized green development and environmental protection, achieving all pollution discharge indicators within government standards[86] - The company has established a comprehensive emergency response plan for environmental incidents, with annual drills conducted to enhance preparedness[93] Shareholder and Governance - The total number of ordinary shares increased from 2,597,837,756 to 3,377,189,083 shares due to a capital reserve conversion plan, resulting in a 3-for-10 share increase for shareholders[97] - The largest shareholder, Hangzhou Iron & Steel Group Co., Ltd., holds 1,509,138,852 shares, representing 44.69% of the total shares[100] - The company has a total of 1,509,138,852 shares held by its top shareholder, which is 44.69% of the total shares[100] - The company has a significant focus on investment in steel and related industries, as indicated by its business operations[105] - The company has established a comprehensive governance structure in compliance with relevant laws and regulations, ensuring effective decision-making and supervision[120] Future Outlook - The company anticipates stable steel demand in 2019, despite challenges from rising raw material costs and environmental regulations impacting profit margins[58] - The company aims to enhance its market competitiveness by focusing on quality improvement and sustainable development in the steel industry[58] - The company plans to strengthen its environmental business through market expansion and capital mergers, positioning itself as a leader in energy-saving and intelligent manufacturing[60] - The company aims to achieve a sales revenue of 26 billion yuan, with iron output of 4.24 million tons, slab output of 4.4 million tons, and hot-rolled output of 4.25 million tons in 2019[61]