BYIS(SH:600581)2023-04-17 16:00Financial Performance - The company's operating revenue for 2022 was CNY 23,044,316,157.76, a decrease of 25.37% compared to CNY 30,879,274,018.20 in 2021[22]. - The net profit attributable to shareholders for 2022 was a loss of CNY 1,367,062,768.07, a decline of 215.73% from a profit of CNY 1,181,201,785.93 in 2021[23]. - The revenue from core business operations, after excluding non-core income, was CNY 22,155,590,448.96, down 24.18% from CNY 29,220,391,922.47 in 2021[23]. - Total revenue for 2022 was 23.04 billion yuan, a decline of 25.37% year-on-year[32]. - The company reported a basic and diluted earnings per share of -0.885 yuan, a decrease of 214.79% compared to 2021[24]. - The weighted average return on equity was -38.05%, down 58.25 percentage points from the previous year[24]. - The net loss attributable to shareholders was 1.406 billion yuan, a decrease of 215.13% year-on-year[32]. - The company achieved a cash flow from operating activities of -446.98 million yuan in 2022[27]. - The company reported a cumulative loss of CNY 1,537,393,503.54 for the year 2022, with an ending undistributed profit of CNY -1,578,772,724.69, leading to no profit distribution or capital reserve transfer for the year[108]. Operational Highlights - The company produced 4.89 million tons of iron and 5.30 million tons of steel in 2022, representing a decrease of 107,000 tons and 113,000 tons respectively compared to 2021[32]. - The company achieved a 30% reduction in solid fuel consumption and a 21% carbon emission reduction through the industrial application of the HyCROF technology[36]. - The company developed 25 new products during the reporting period, with a total sales volume of 290,000 tons and a new product sales rate of 5.5%[36]. - The company has an annual steel production capacity of 8 million tons and operates a complete steel industry chain[34]. - The company produced 171.59 million tons of construction materials, a decrease of 23.86% year-over-year, while sales volume decreased by 25.29%[45]. Cash Flow and Assets - The net cash flow from operating activities increased by 198.03% to CNY 654,425,228.71 in 2022, compared to CNY 219,586,807.91 in 2021[23]. - The total assets at the end of 2022 were CNY 29,695,266,816.57, a decrease of 4.73% from CNY 31,171,017,892.76 at the end of 2021[23]. - The net assets attributable to shareholders decreased by 31.57% to CNY 2,920,629,148.43 at the end of 2022, down from CNY 4,268,232,200.71 at the end of 2021[23]. - The cash and cash equivalents increased by 51.41% to ¥1,826,388,502.77 compared to the previous period[57]. - The inventory decreased by 24.12% to ¥3,389,478,254.78 from ¥4,467,020,256.46 in the previous period[57]. Strategic Initiatives - The company is focusing on green manufacturing and has achieved a carbon reduction target of 21% through innovative technologies[32]. - The company plans to enhance its digital transformation and smart manufacturing capabilities to drive efficiency and competitiveness[32]. - The company aims to extend its product industry chain and deepen market development to maximize product profitability[32]. - The company plans to complete ultra-low emission transformation projects in 2023, aligning with regional environmental regulations[65]. - The company is committed to a "regional + boutique + leading + green" development strategy to enhance manufacturing capabilities and product competitiveness[72]. Governance and Management - The company completed the election of the eighth board of directors and supervisory board in November 2022, with 9 directors, including 3 independent directors, accounting for 33%[75]. - The company has maintained complete operational independence from its controlling shareholder, ensuring independent business and financial operations[76]. - The company has engaged in various strategic partnerships and collaborations to enhance its market position[86]. - The company has established specialized committees under the board, including audit and remuneration committees, to enhance governance[96]. - The company has a structured salary distribution system in place, with year-end bonuses based on performance metrics[88]. Environmental Compliance - The company invested 106 million yuan in environmental protection during the reporting period[119]. - The actual emissions of particulate matter were 835.466 tons, sulfur dioxide 1,291.475 tons, and nitrogen oxides 3,942.64 tons, with wastewater from the metal products subsidiary achieving zero discharge[120]. - The company has implemented a wastewater treatment system that allows for the complete reuse of treated water in production processes, achieving zero discharge for ammonia nitrogen[124]. - The company has established a comprehensive governance plan for air pollution control, aligning with national and regional environmental policies[124]. - The company completed 18 environmental protection projects in 2022, including upgrades to sintering machine emissions and dust removal systems[126]. Related Party Transactions - The company reported a total of 837.2 million yuan in related party transactions during the reporting period[160]. - The expected daily related party transactions for 2022 were estimated at 25.24 billion yuan, including 7.5 billion yuan for financial services[161]. - The company emphasized fair pricing in related transactions, adhering to market prices or local standards where applicable, ensuring no harm to shareholder interests[164]. - The company’s related transactions were conducted under principles of fairness and transparency, with strict adherence to disclosure obligations[164]. - The company will ensure that Ba Yi Steel operates independently and can make its own financial decisions without interference[146]. Future Outlook - The company anticipates that the steel industry will face a decline in overall domestic demand, influenced by high supply capacity and insufficient downstream demand[6]. - The company aims to apply for a comprehensive credit line of 24.22 billion yuan from financial institutions in 2023[72]. - For 2023, the company plans to produce 5.38 million tons of iron, 6.05 million tons of steel, and 5.78 million tons of materials, with an expected operating income of 27 billion yuan[72]. - The company plans to conduct key fixed asset investment projects in 2022, reflecting a strategic focus on capital allocation[91]. - The company has committed to resolving potential industry competition issues following the acquisition of Ba Yi Steel, ensuring no harm to the interests of minority shareholders[152].