Nisco(SH:600282)2022-08-23 16:00Financial Performance - The company's operating revenue for the first half of 2022 was approximately ¥34.89 billion, a decrease of 9.59% compared to ¥38.59 billion in the same period last year [22]. - The net profit attributable to shareholders for the first half of 2022 was approximately ¥1.49 billion, down 34.01% from ¥2.26 billion in the previous year [22]. - The net cash flow from operating activities was approximately ¥1.89 billion, a decline of 24.91% compared to ¥2.51 billion in the same period last year [22]. - The basic earnings per share for the first half of 2022 was ¥0.2426, a decrease of 34.23% from ¥0.3689 in the same period last year [23]. - The total profit for the period was approximately ¥1.88 billion, down 33% from ¥2.81 billion year-on-year [199]. - The operating profit decreased to approximately ¥1.98 billion, a decline of 29.4% from ¥2.81 billion in the previous year [199]. - The total comprehensive income for the period was approximately ¥1.48 billion, a decrease of 32.5% compared to ¥2.19 billion in the previous year [200]. - The investment income from joint ventures and associates was approximately ¥70.63 million, down from ¥126.52 million year-on-year [199]. - The foreign exchange gains for the period were approximately ¥29.25 million, an increase from ¥25.28 million in the previous year [199]. - The impairment loss on assets was approximately ¥236.98 million, compared to a loss of ¥208.74 million in the same period of 2021 [199]. - The company reported a tax expense of approximately ¥310.30 million, down from ¥546.35 million in the previous year [199]. Assets and Liabilities - The total assets at the end of the reporting period were approximately ¥67.87 billion, an increase of 17.63% from ¥57.70 billion at the end of the previous year [22]. - The company's asset-liability ratio was 55.33% at the end of the reporting period [57]. - Total liabilities reached ¥37,554,246,174.50, up from ¥30,556,171,398.65, indicating a growth of around 22.5% [193]. - Owner's equity increased to ¥30,319,624,048.01 from ¥27,144,783,563.11, showing an increase of about 8.0% [193]. - Cash and cash equivalents reached CNY 8.73 billion, accounting for 12.86% of total assets, up 38.27% year-on-year [72]. - Accounts receivable surged by 112.12% to CNY 2.57 billion, primarily due to increased export letters of credit and receivables from key projects [72]. - Inventory grew by 10.53% to CNY 9.03 billion, influenced by the Wansheng acquisition [72]. - Short-term borrowings increased by 50.43% to CNY 9.83 billion, reflecting higher working capital and reserves [73]. - Long-term borrowings surged by 142.83% to CNY 3.93 billion, primarily due to loans for the Indonesian coking project and the Wansheng acquisition [73]. Production and Capacity - The company has a production capacity of over 10 million tons of steel annually and is a leading integrated steel enterprise [27]. - The company is focusing on the development of advanced steel materials, targeting high-strength and high-toughness products for key national projects [28]. - The company has established a national-level intelligent manufacturing pilot demonstration factory and several provincial-level smart factories [28]. - The company has undertaken 14 national key projects, including the production of 9% Ni steel for ultra-low temperature applications [28]. - The company achieved batch supply of high-strength wind power steel to major projects, including offshore wind farms in the UK and Morocco [33]. - The company has developed a series of high-strength structural steel plates with a yield strength of 1300MPa and a hardness of 600HB, significantly extending the lifespan of components and reducing energy consumption [38]. Environmental Compliance and Sustainability - The company has implemented a green production strategy, focusing on ultra-low emissions and advanced pollution control technologies [64]. - The company achieved a significant reduction in comprehensive energy consumption per ton of steel, reaching 525.2 kgce, a decrease of 16.1 kgce compared to the previous year [70]. - The company has maintained a 100% compliance rate with national clean production standards for major pollutants during the reporting period [103]. - The company has zero major environmental pollution accidents or incidents reported during the period [103]. - The company has established a comprehensive waste management strategy to minimize environmental impact and ensure compliance with discharge standards [108]. Investments and Acquisitions - Wansheng Co. acquired 29.56% of shares in Wansheng Co. (603010.SH), becoming its controlling shareholder, with a production capacity of 133,500 tons in Zhejiang and 550,000 tons in Shandong across multiple facilities [41]. - The company completed the acquisition of Wansheng Co. to extend its reach into the new materials sector, enhancing its competitive edge [48]. - The company invested 50 million yuan for a 4.01% stake in Dongfang Hydrogen Energy, focusing on hydrogen fuel cell technology [48]. - The company has invested a total of 5.98 million USD in the joint venture in Indonesia for a coke project with an annual production capacity of 2.6 million tons [80]. - The company has completed significant non-equity investments totaling approximately CNY 3.5 billion, with major projects including the Integrated Smart Center and Industrial Internet construction [83]. Corporate Governance and Compliance - The board of directors confirmed that all members attended the meeting, ensuring the authenticity and completeness of the financial report [6]. - The company has not violated decision-making procedures in providing guarantees [8]. - The company has established a commitment to avoid any actions that could harm the interests of minority shareholders during its operational period [125]. - The company has committed to maintaining its independence by ensuring that key management personnel do not hold positions in other controlled enterprises and that financial personnel operate independently [138]. - The company has established an independent financial department and accounting system, ensuring compliance with regulations and independent financial decision-making [140]. Market and Industry Trends - In the first half of 2022, the global crude steel production was 949 million tons, a decrease of 5.5% year-on-year, with China's production at 527 million tons, down 6.5% [50]. - The total profit for the black metal smelting and rolling industry in the first half of 2022 was 82.61 billion RMB, a decline of 68.7% year-on-year [51]. - The cumulative steel export volume for China in the first half of 2022 was 33.461 million tons, a decrease of 10.5% year-on-year [50]. - The company faced significant challenges due to economic pressures, including demand contraction and supply shocks, but anticipates a recovery in the second half of the year [86].