FSSS(SH:600399)2023-04-19 16:00Corporate Governance and Meetings - The company held a total of 6 board meetings during the reporting period, with 3 conducted via communication methods and 3 combining on-site and communication methods [3]. - The strategic and investment committee held 1 meeting to discuss the investment in technology renovation projects, emphasizing the importance of timely project completion [6]. Training and Employee Development - A total of 914 training sessions were conducted in 2022, with 47,046 participants, aimed at enhancing management and employee skills [9]. - The company plans to continue multi-level training in 2023 to further enhance employee skills and support corporate development [9]. - The company has established a comprehensive compensation structure for management, combining basic salary, performance bonuses, and benefits [9]. - The company has implemented a performance-oriented salary system for middle and senior management, reflecting efficiency and fairness [9]. Environmental Commitment - The company has committed to reducing carbon emissions as part of its strategy to achieve carbon peak by 2030 and carbon neutrality by 2060, implementing various energy-saving measures [19]. - The company has completely phased out the use of coal as a fuel source by shutting down two 35-ton coal-fired boilers, marking a significant step towards clean and low-carbon combustion [20]. - The company reduced carbon emissions by 62,303 tons through measures such as shutting down coal-fired boilers [38]. - The company has established an environmental protection mechanism and complies with pollution discharge permit limits [34]. - The company has invested 82.42 million RMB in environmental protection funds during the reporting period [34]. - The company is focused on optimizing processes to reduce energy consumption and pollution emissions through technical renovations [19]. Legal Matters and Litigation - The company has faced a total of 4,052 lawsuits from minority shareholders, with a total compensation claim amounting to 298.62 million RMB; 12.23 million RMB has been paid out in settled cases [50]. - The company is currently involved in several lawsuits, including a claim for 2.12 million RMB in construction payments and interest, with the first instance trial already held [50]. - The company has a pending lawsuit regarding the return of 910 kilograms of tin-based alloy valued at 266,630 RMB, with an appeal filed [50]. - The company has reported a first-instance judgment requiring it to pay 1.74 million RMB in principal and interest to a plaintiff, with mediation reached on March 30, 2023 [50]. - The company has ongoing litigation involving claims amounting to approximately 409.98 million yuan, with a first-instance judgment confirming the bank's ordinary bankruptcy claim against the company [61]. - The company has no significant litigation or arbitration matters pending that could affect its financial position [32]. - The company is awaiting the court's decision on several ongoing lawsuits, with no significant debts due that remain unpaid [32]. - The company recognized a provision for expected liabilities of CNY 96.22 million due to a court ruling related to bankruptcy claims [137]. - The company has faced a total of 4,052 lawsuits related to securities false statements, with a total claim amount of CNY 298.62 million [137]. - The company has compensated CNY 119.75 million to 3,967 shareholders regarding the aforementioned lawsuits [137]. Financial Performance - The total revenue for the current period is CNY 6,612,081,961.76, representing a 12.69% increase compared to CNY 5,867,446,660.54 in the same period last year [91]. - The net profit for the year was 197 million RMB, a significant decrease of 74.92% compared to the previous year [151]. - The basic earnings per share for 2022 was CNY 0.10, a decrease of 75.00% compared to CNY 0.40 in 2021 [128]. - The diluted earnings per share for 2022 was also CNY 0.10, reflecting a 75.00% decline from the previous year [128]. - The weighted average return on equity decreased to 3.30% in 2022, down 11.04 percentage points from 14.34% in 2021 [128]. - The company reported a significant increase in estimated liabilities by 6709.01%, primarily due to a lawsuit provision [97]. - The company's cash and cash equivalents increased by 54.64%, primarily due to the redemption of entrusted financial management products [97]. - The company's accounts receivable increased by 100%, attributed to the holding of commercial acceptance bills [97]. - The gross profit margin for profile products decreased from 19.36% to 14.09% [104]. - The total assets of Fushun Special Steel Co., Ltd. are CNY 1,805,144,601.80, with a net profit of CNY 175,598,768.79 for the year [112]. - The company plans to expand its market presence and invest in new projects, as indicated by a 40.67% increase in construction in progress [97]. - The company has not experienced any major changes in its development strategy during the reporting period [108]. - The company’s revenue and profit performance are expected to be impacted by ongoing legal proceedings and provisions made [137]. Production and Capacity - In 2022, the company achieved a steel production of 613,900 tons, a year-on-year decrease of 11.22% [151]. - The company has ongoing projects aimed at increasing production capacity by approximately 42,800 tons through the construction of new facilities and technology upgrades, expected to be completed by 2024 [86]. - The company completed the construction of a new 7,000-ton forging machine and a 30-ton vacuum self-consumption furnace, which were put into production as planned [153]. - The company has completed the installation of three out of twelve new electric arc furnaces, with the remaining expected to be operational by June 2023 [86]. - The company’s high-end product capacity utilization remains high, indicating strong operational efficiency and market demand [86]. - The company is currently implementing a series of technical upgrades and new projects to enhance its production capabilities and product offerings, which are expected to positively impact future growth [86]. - The production of induction steel increased by 3.5% year-on-year, and self-consumed steel production rose by 8.5% [152]. - The company produced 456,673 tons of special steel, a decrease of 17.06% compared to the previous year [199]. - The sales volume of special steel reached 463,823 tons, down 14.11% year-on-year [199]. - The inventory of special steel stood at 45,620 tons, reflecting a reduction of 13.55% from the previous year [199]. Research and Development - Research and development expenses amounted to 382.63 million RMB, representing a 23.88% increase from the previous year [178]. - The company developed 271 new products and acquired 256 new customers during the reporting period [176]. - The company conducted 56 domestic substitution projects and 47 product certification projects in 2022 [176]. - The company has ongoing research projects totaling 58, with 31 from the National Defense Science and Technology Industry Administration [176]. - The company participated in 58 national projects and completed 9, while also obtaining 20 authorized patents during the year [152]. Market and Industry Trends - The automotive industry accounted for approximately 40% of the domestic special steel demand, which was negatively impacted by the economic downturn [154]. - The overall operating efficiency of the special steel industry has declined due to high raw material prices and falling steel prices in the second half of the year [193]. - The company experienced a general decline in demand from downstream industries such as automotive and engineering machinery due to economic downturns [193]. - The global crude steel production in 2022 was 1.832 billion tons, a decrease of 4.3% year-on-year, with China's production at 1.013 billion tons, down 2.1% [154]. Strategic Partnerships and Recognition - The company has formed stable strategic cooperation relationships with its controlling shareholder, which helps reduce operating costs and expand product range [53]. - The company has established long-term stable partnerships with key clients such as China Commercial Aircraft Corporation and Shaanxi Fast Gear [195]. - The company has received multiple quality awards, including the National Defense Science and Technology Progress First Prize in 2015 [195]. - The company is recognized as a high-tech enterprise and has a national-level technology center [195]. - The company has participated in drafting several national standards, including three military standards [195]. - The company is part of the Shagang Group and is recognized as one of the most influential special steel enterprises in China [193].