FANGDA S.Steel(SH:600507)2022-03-18 16:00Financial Performance - The company achieved operating revenue of CNY 21.68 billion in 2021, a year-on-year increase of 30.59% compared to CNY 16.60 billion in 2020[13]. - Net profit attributable to shareholders reached CNY 2.73 billion, reflecting a 27.65% increase from CNY 2.14 billion in the previous year[13]. - The net profit after deducting non-recurring gains and losses was CNY 2.65 billion, up 29.15% from CNY 2.05 billion in 2020[13]. - The company's total assets increased by 46.61% to CNY 20.11 billion at the end of 2021, compared to CNY 13.72 billion at the end of 2020[13]. - The weighted average return on net assets was 29.44%, an increase of 0.65 percentage points from 28.79% in 2020[13]. - The basic earnings per share for 2021 was CNY 1.27, up from CNY 0.99 in 2020, marking a 28.28% increase[13]. - The company reported a quarterly revenue of CNY 6.12 billion in Q3 2021, with a net profit of CNY 664.43 million for the same period[15]. - The company reported a significant increase in revenue, achieving a total of 49.62 billion RMB for the year 2021[88]. - The net profit for the year reached CNY 2,759,501,000.67, an increase from CNY 2,158,195,396.94 in the previous year, representing a growth of approximately 27.8%[200]. Dividend and Shareholder Returns - The proposed cash dividend for 2021 is CNY 11.10 per 10 shares, totaling CNY 2,393,104,747.53 (including tax) based on a total share capital of 2,155,950,223 shares[3]. - The cash dividend payout ratio for the year is 87.60%, indicating a strong return to shareholders[3]. - The company has not proposed any stock dividends or capital reserve transfers for the year[3]. - The company has established a clear and fair cash dividend policy, ensuring the protection of minority shareholders' rights[114]. Operational Efficiency and Cost Management - Operating revenue increased by 30.59% compared to the previous year, primarily due to the rise in product sales prices[35]. - Operating costs rose by 35.18% year-on-year, mainly due to increased raw material procurement prices[35]. - The company focused on cost-effectiveness through benchmarking and continuous improvement initiatives, leading to better operational performance[20]. - The company aims to enhance its supply chain management to reduce costs by 5% in the upcoming fiscal year[91]. - The gross profit margin improved to 18%, up from 16% in the previous year, indicating better cost management and pricing strategies[95]. Research and Development - Research and development expenses increased by 47.10% compared to the previous year, reflecting the company's commitment to enhancing R&D projects[35]. - The total number of R&D personnel was 66, representing 0.88% of the total workforce[47]. - The company is actively engaging in research and development to enhance its product offerings and technological capabilities[75]. - New product development initiatives are underway, focusing on innovative steel products aimed at expanding market share[90]. - The company plans to invest in new technologies to improve operational efficiency, with an estimated budget of 1 billion RMB over the next two years[91]. Environmental and Safety Practices - The company emphasized safety and environmental protection, implementing strict safety management practices and enhancing safety training[17]. - The company achieved zero environmental pollution incidents and zero administrative penalties in 2021[19]. - The company maintained a 100% compliance rate for environmental protection facilities, with all emissions meeting standards during the reporting period[121]. - The company has 163 environmental protection facilities, including 68 for air treatment and 10 for water treatment, all operating effectively[121]. - The company implemented measures to reduce carbon emissions, including the successful grid connection of the No. 1 gas turbine generator on May 7, 2021[127]. Market and Industry Outlook - The company anticipates that infrastructure investment will rebound in 2022, with over 1 trillion RMB of local government special bonds expected to be implemented[64]. - The company expects that the focus on green and low-carbon development will become a key point for the steel industry, aligning with national goals for carbon neutrality[64]. - The global steel demand is projected to grow by 2.2% in 2022, reaching 1.896 billion tons, while China's steel export price advantage is expected to weaken[67]. - The company aims to produce and sell 4.05 million tons of steel in 2022, with specific targets of 188,000 tons for spring plates and 193,000 tons for sales[70]. Corporate Governance and Compliance - The company adheres to strict corporate governance practices, ensuring compliance with relevant laws and regulations to protect shareholder rights[78]. - The internal control audit report issued by Zhongzheng Hua Certified Public Accountants confirmed effective financial reporting internal controls as of December 31, 2021[118]. - The company has not faced any penalties from securities regulatory authorities in the past three years[102]. - The company has maintained a consistent attendance record for its directors at board meetings, with no instances of consecutive absences[103]. Related Party Transactions - The total amount of related party transactions for the year reached CNY 6,583,751.27, indicating significant inter-company sales activities[142]. - The company engaged in various transactions with related parties, including purchasing goods valued at CNY 1,346,613.24 from Gansu Fangda Tongte New Materials Co., Ltd.[139]. - The company utilized market price or negotiated price as the pricing principle for all related transactions, ensuring competitive pricing[139]. - The company has confirmed that all external guarantees have been executed in compliance with relevant laws and regulations, with no overdue guarantee issues[152]. Employee and Management Practices - The company has a comprehensive training strategy aimed at enhancing employee skills and overall quality[111]. - The company has implemented a salary system that combines short-term and long-term incentives for middle and senior management, focusing on performance and contribution[110]. - The total remuneration paid to directors, supervisors, and senior management was CNY 6,370.75 million[102]. - The management team emphasized the importance of sustainability in future operations, aiming for a 20% reduction in carbon emissions by 2025[90].