xinsteel(SH:600782)2019-04-22 16:00Financial Performance - The company's operating revenue for 2018 was CNY 5,696,330.20 million, representing a 14.00% increase compared to CNY 4,996,701.36 million in 2017[24]. - The net profit attributable to shareholders of the listed company reached CNY 590,512.54 million, an increase of 89.84% from CNY 311,062.22 million in the previous year[24]. - The net cash flow from operating activities was CNY 296,740.93 million, showing a decrease of 62.66% compared to CNY 794,677.43 million in 2017[24]. - The company reported a significant increase in net profit after deducting non-recurring gains and losses, with a growth rate of 91.25% compared to the previous year[24]. - The net assets attributable to shareholders of the listed company increased to CNY 1,897,560.25 million, a 42.13% increase from CNY 1,335,087.98 million in the previous year[27]. - Total assets rose to CNY 4,163,575.60 million, reflecting a 25.31% increase compared to CNY 3,322,592.94 million in the prior year[27]. - Basic earnings per share reached CNY 1.8519, marking a 69.90% increase from CNY 1.0900 in 2017[27]. - The weighted average return on net assets increased by 6.58 percentage points to 36.5343% from 29.9546% in the previous year[27]. - The company reported a total cost of 3,142,576.68 million CNY, with material costs accounting for 54.15% of total costs, reflecting a 13.66% increase from the previous year[62]. - Operating costs rose to 48.77 billion RMB, reflecting a year-on-year increase of 9.62% due to higher raw material prices and increased sales volume[54]. Dividend Distribution - The company plans to distribute a cash dividend of CNY 2.00 per 10 shares, totaling CNY 637,744,539.20 million, based on the total share capital of 3,188,722,696 shares as of the end of 2018[6]. - The net profit for the parent company in 2018 was 5,751,520,978.78 RMB, with a total distributable profit of 8,577,372,667.05 RMB after accounting for previous distributions[115]. - The company’s cash dividend payout ratio for 2018 is 10.80%, compared to 9.23% in 2017[116]. Risk Management - The company has identified major risk factors including macroeconomic risk, market risk, financial risk, and operational risk, with detailed countermeasures provided in the report[8]. - The company emphasizes the importance of risk awareness in future strategic planning and development[7]. - The company faces risks related to the cyclical nature of the steel industry, which is influenced by global economic conditions and domestic market competition[110]. - Fluctuations in production costs, particularly for key raw materials like iron ore, coking coal, and electricity, significantly impact the company's financial performance[110]. - The company relies heavily on imported iron ore, making it vulnerable to international price volatility[110]. - Environmental risks remain a concern as the company continues to invest in meeting national standards, with potential future upgrades required[110]. Production and Operations - The company achieved a total production of 9.04 million tons of pig iron, 8.93 million tons of steel, and 8.44 million tons of steel products, representing year-on-year increases of 3.99%, 4.43%, and 5.18% respectively[50]. - Steel production reached 8,880,300 tons, an increase of 3.83% year-over-year, while sales volume was 8,914,100 tons, up 5.26% year-over-year[60]. - The company has maintained a production and sales rate of 98% in its stable markets in the Yangtze River and South China regions, with significant market shares in various steel products[40]. - The company has over 800 product varieties and 3,000 specifications, primarily serving key industries such as shipbuilding and petrochemicals[33]. - The annual production capacity of high-quality steel products is 7 million tons, with a focus on cold-rolled and hot-rolled plates, achieving domestic leading and internationally advanced quality levels[39]. Research and Development - Research and development expenses increased by 24.70% to 533.45 million RMB, driven by increased investment in R&D activities[54]. - Research and development expenses totaled 138,028.98 million CNY, representing 2.42% of operating revenue, with 2,974 R&D personnel, making up 16.45% of total employees[66]. - The company has launched four national and provincial research projects, with two completed, and has received three provincial-level technology awards, indicating strong innovation capabilities[46]. - The company is investing in R&D for new technologies, aiming to allocate 8% of total revenue towards innovation initiatives[180]. Environmental Initiatives - The company has reduced external electricity consumption by 44.84 kWh per ton of steel through energy-saving projects, showcasing its commitment to environmental sustainability[48]. - The company has increased its environmental monitoring capabilities by adding 82 self-monitoring points and 217 monitoring projects, enhancing its environmental management[48]. - The company has implemented measures for source control and process monitoring to maintain environmental quality, with no major pollution incidents reported during the reporting period[148]. - The company’s nitrogen oxides emissions totaled 8663.08 tons, also meeting the required discharge standards[149]. - The company has committed to social responsibility through its poverty alleviation and environmental protection initiatives, as detailed in its annual social responsibility report[147]. Strategic Planning - The company plans to invest 3.5 billion yuan in key projects, including the transformation of intelligent and environmentally friendly material yards[106]. - The company aims to strengthen internal management and enhance equipment quality to ensure sustainable development[109]. - The company is focusing on enhancing core competitiveness in the steel industry while transitioning from low-end to high-end manufacturing[106]. - The company is committed to developing non-steel industries to achieve a revenue target of 100 billion yuan[106]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 53,808, down from 59,080 at the end of the previous month[163]. - The largest shareholder, Xinyu Steel Group Co., Ltd., holds 1,772,098,232 shares, representing 55.57% of the total shares[163]. - The top ten unrestricted shareholders hold a total of 1,772,098,232 shares, with the largest shareholder being Xinyu Steel Group Co., Ltd.[166]. - The company has no major related party transactions that were not disclosed in temporary announcements[131]. Management and Governance - The company appointed new board members including Chairman Xia Wenyong and Vice Chairman Guan Caitang through elections[196]. - The company has seen changes in its supervisory board with the election of new members, including the Chairperson of the Supervisory Board, Xie Min[196]. - The total actual remuneration for all directors, supervisors, and senior management from the listed company amounted to 5.2261 million yuan (including tax) at the end of the reporting period[195]. - The remuneration for directors, supervisors, and senior management consists of a base salary and performance pay, with performance pay calculated based on annual operational performance assessments[195].