FSSS(600399)2022-03-30 16:00Financial Performance - The company achieved a net profit of ¥785,104,694.31 for the year 2021, with an accumulated undistributed profit of ¥1,512,353,699.95 by the end of the year[7]. - The total revenue for 2021 was 7,414,429,093.84 RMB, reflecting an 18.21% increase compared to 2020[26]. - The net profit attributable to shareholders was 783,392,201.12 RMB, representing a 42.02% increase from the previous year[26]. - The company reported a net cash flow from operating activities of 340,168,389.89 RMB, a decrease of 45.10% compared to 2020[26]. - The company's total assets at the end of 2021 were 10,223,592,341.25 RMB, a 10.03% increase from the end of 2020[26]. - The basic earnings per share for 2021 was 0.40 RMB, up 42.86% from 0.28 RMB in 2020[29]. - The weighted average return on equity increased to 14.34%, up 2.83 percentage points from 11.51% in 2020[29]. - The company reported a gross margin of 20.00% for the overall business, a decrease of 1.93 percentage points compared to the previous year[57]. Production and Sales - In 2021, the company achieved a steel production of 691,500 tons, an increase of 7.76% year-on-year[36]. - The company achieved a steel production volume of 691,500 tons, an increase of 7.76% year-on-year, and a steel product output of 550,600 tons, up 9.12% year-on-year[39]. - Special steel production reached 550,631 tons, with sales volume of 539,988 tons, reflecting a production increase of 9.13% year-on-year[60]. - The production of alloy structural steel tools reached 314,830 tons this year, a slight decrease from 319,574 tons last year, with sales of 315,490 tons compared to 313,839 tons last year, generating revenue of 300,378,000 RMB, up from 260,309,000 RMB last year, resulting in a gross margin of 16.73% this year compared to 7.0% last year[87]. - Stainless steel production was 81,945 tons this year, with sales of 64,752 tons, generating revenue of 138,110,000 RMB and a gross margin of 22.09%, compared to last year's gross margin of 23.15%[90]. Research and Development - The company focused on R&D in key areas such as national defense and aerospace, enhancing quality and efficiency[36]. - The company’s R&D expenditure for 2021 amounted to 309 million yuan, with 56 ongoing research projects, including 6 national projects approved[39]. - The company received 13 invention patents and 2 utility model patents in 2021, contributing to its innovation capabilities[39]. - The company has developed over 5,400 grades of special steel materials, showcasing its extensive production experience[48]. - Research and development expenses amounted to ¥308.87 million, representing 4.17% of total revenue[71]. Market and Strategic Focus - The company’s strategic focus on high-end special steel products has led to significant growth opportunities in the market[36]. - The company is actively expanding into new markets, particularly in defense, shipbuilding, automotive stainless steel, and wind power bearing steel[39]. - The company plans to achieve steel production of 680,000 to 740,000 tons and steel product output of 540,000 to 600,000 tons in 2022, with core products "three highs and one special" targeted at 75,000 to 85,000 tons[100]. - The projected revenue for 2022 is between 8 billion to 8.8 billion yuan, with a net profit forecast of 500 million to 800 million yuan[100]. Raw Material Costs and Risks - Raw material costs, primarily nickel, cobalt, and chromium, accounted for approximately 60%-70% of the company's product cost structure, significantly impacting profitability due to price fluctuations[9]. - The company anticipates significant uncertainty in profitability due to the potential for further increases in raw material prices in 2022[9]. - The company faces risks from potential claims by minority shareholders due to past regulatory violations related to information disclosure[101]. - The company recognizes the ongoing economic environment risks, including trade disputes and the impact of the COVID-19 pandemic on production and demand[104]. Governance and Compliance - The company has established a comprehensive governance structure, ensuring compliance with relevant laws and regulations[106]. - The company emphasizes the importance of maintaining the rights of all shareholders, particularly minority shareholders, during its operations[106]. - The company has implemented a product specialization system to mitigate competition with its controlling shareholder, Dongbei Special Steel Group[109]. - The company has maintained compliance with the China Securities Regulatory Commission's regulations regarding corporate independence[188]. Environmental Responsibility - The company invested 75.31 million yuan in environmental protection measures, including the replacement of dust collectors and the renovation of waste steel storage areas[164]. - The company has established a complete management system in accordance with ISO 14001 standards to enhance environmental protection and pollution prevention[164]. - The company’s wastewater emissions included 13.6 tons of chemical oxygen demand and 0.73 tons of ammonia nitrogen, both compliant with discharge standards[163]. - The company has established emergency response plans for environmental pollution incidents to ensure safety and compliance with regulations[168]. Social Responsibility - The company conducted four visits to 42 registered impoverished households in 2021 to understand their living conditions and reasons for poverty[176]. - The company participated in various village affairs and implemented precise poverty alleviation measures in accordance with provincial and municipal requirements[176]. - The company emphasizes compliance with national laws and regulations, enhancing tax awareness and fulfilling tax obligations proactively[175]. - The company will continue to deepen its social responsibility concept and integrate it into all aspects of production and management[175].