Nisco(SH:600282)2023-08-25 16:00Financial Performance - The company's operating revenue for the first half of 2023 was CNY 36.92 billion, an increase of 3.72% compared to CNY 35.59 billion in the same period last year [22]. - The net profit attributable to shareholders for the first half of 2023 was CNY 989.06 million, a decrease of 36.80% from CNY 1.57 billion in the previous year [22]. - The net cash flow from operating activities decreased by 21.28% to CNY 1.61 billion from CNY 2.05 billion year-on-year [22]. - The company's total assets increased by 5.50% to CNY 78.78 billion compared to CNY 74.67 billion at the end of the previous year [22]. - The basic earnings per share for the first half of 2023 was CNY 0.1604, down 36.97% from CNY 0.2545 in the same period last year [23]. - The company achieved a net profit of 6.13 billion yuan in Q2 2023, a significant increase of 62.91% quarter-on-quarter, with an average sales price of steel products at 5,141.66 yuan/ton, up 17.34% [53]. - The total revenue for the company reached 36.918 billion yuan, a year-on-year increase of 3.72%, while the net profit attributable to shareholders was 9.89 billion yuan, down 36.80% [55]. - The company's total liabilities increased, with long-term payables rising by 56.89% to CNY 952,776,459.69 due to increased financing lease obligations [70]. Research and Development - The company has maintained R&D investment exceeding 3% of operating revenue for several years, focusing on high-strength and high-toughness steel materials [28]. - The management has indicated that future economic and industry assumptions are subject to risks and uncertainties, which may affect operational plans [6]. - Research and development expenses increased by 24.29% to CNY 1,188,307,875.40, reflecting a focus on enhancing production and innovation capabilities [65]. - The company launched 14 high-end products, including X65MOS anti-corrosion pipeline steel, achieving a "0 to 1" breakthrough in R&D [59]. - The company is focusing on research and development of green low-carbon products to support energy conservation and emission reduction [86]. Environmental Compliance - The company achieved a 100% compliance rate with national clean production standards for major pollutants during the reporting period [62]. - The company has implemented new pollution control technologies to ensure compliance with national standards [97]. - The total emissions for the first half of 2023 amounted to 1,480.99 tons, with an annual permitted emission limit of 14,200.38 tons [97]. - The company achieved compliance with the pollutant discharge standards, with no exceedances reported for the wastewater treatment facilities [104]. - The company has actively responded to national calls for green and low-carbon development, increasing investment in environmental protection facilities [107]. Strategic Initiatives - The company is actively pursuing a strategy of "industrial operation × industrial investment" to enhance its core capabilities and optimize the industrial value chain [27]. - The company aims to peak carbon emissions by 2030 and achieve carbon neutrality by 2050, with a self-generated electricity ratio of 54%, an increase of approximately 7 percentage points year-on-year [62]. - The company has established investment funds focusing on strategic emerging industries such as intelligent manufacturing and new materials [43]. - The company is focused on expanding its market presence while adhering to environmental regulations and standards [97]. - The company has a strategy to optimize procurement and reduce costs, including a low inventory operation strategy to mitigate price risks [85]. Shareholder and Governance - The company reported no interim profit distribution or capital reserve transfer to increase share capital for the first half of 2023 [6]. - The board of directors confirmed that all members attended the meeting, ensuring collective responsibility for the report's accuracy [5]. - The company has committed to maintaining its current business structure and avoiding competition with its parent company, Nanjing Steel Group [119]. - The company has pledged to prioritize business opportunities that may conflict with its interests, ensuring they are offered to the company or its subsidiaries first [123]. - The company has committed to compensating any losses incurred due to violations of the commitments made by controlling shareholders [123]. Market Position and Product Development - The company has achieved a leading position in the domestic market for ultra-low temperature steel, with a continuous market share of over 50% for 9% Ni steel, recognized as a "Manufacturing Single Champion Product" by the state [29]. - The company has developed high-strength steel for wind power, hydropower, and nuclear power applications, with specific grades such as 800MPa and 600MPa used in major national projects like the Baihetan Hydropower Station [29]. - The company has established a strong presence in the oil and gas equipment sector, with X80 grade pipeline steel leading the industry and certified by major international companies like Saudi Aramco and Total [29]. - The company has developed high-strength steel for engineering machinery, achieving a yield strength of over 1000MPa and supplying to major domestic and international construction projects [31]. - The company has successfully supplied high-performance bridge steel for significant domestic and international projects, including the Croatia Pelješac Bridge and the first uncoated weathering steel railway bridge in China [31]. Financial Management - The company’s investment activities generated a net cash outflow of CNY 2,444,573,200.21, reflecting a significant decrease in external investments compared to the previous year [65]. - The company reported a significant increase in foreign exchange gains, which rose to CNY 210,012,928.88, a 617.99% increase compared to CNY 29,250,101.43 in the previous year [65]. - The company’s financial expenses increased by 4.04% to CNY 275,401,664.26, indicating rising costs associated with financing [65]. - The company has completed various projects funded by raised capital, including environmental upgrades and industrial internet construction [158]. - The company has a total of CNY 6,162,954,511.00 in paid-in capital at the end of the reporting period [199].