xinsteel(SH:600782)2022-04-25 16:00Financial Performance - In 2021, the company's operating revenue reached CNY 10,491,283.98 million, an increase of 44.88% compared to 2020[20] - The net profit attributable to shareholders was CNY 434,455.86 million, reflecting a growth of 60.90% year-on-year[20] - The net profit after deducting non-recurring gains and losses was CNY 408,372.49 million, up 66.53% from the previous year[20] - The net cash flow from operating activities was CNY 481,132.80 million, an increase of 34.56% compared to 2020[20] - By the end of 2021, the net assets attributable to shareholders amounted to CNY 2,689,915.04 million, a growth of 14.47% year-on-year[20] - Basic earnings per share rose to CNY 1.39, a 63.53% increase compared to CNY 0.85 in 2020[23] - The weighted average return on equity improved to 17.42%, an increase of 5.49 percentage points from 11.93% in 2020[23] - The company achieved a total revenue of CNY 10,490,000 million for the year, reflecting a robust growth trajectory despite market challenges[30] - The company achieved operating revenue of 104.91 billion RMB, a year-on-year increase of 44.88%, and a net profit of 4.47 billion RMB, up 62.84% year-on-year[47] Dividend and Shareholder Returns - The company plans to distribute a cash dividend of CNY 5.00 per 10 shares (including tax) to all shareholders[4] - The cash dividend policy is clear and complies with company regulations, ensuring protection of minority shareholders' rights[119] - The company reported a positive net profit attributable to shareholders, but did not propose a cash profit distribution plan for the reporting period[122] Risk Management - The company has identified risks including macroeconomic, market, financial, and operational risks, with strategies outlined in the management discussion section[5] - The company faces economic risks due to the cyclical nature of the steel industry, with challenges including demand contraction and inflationary pressures[83] - The company faces operational risks due to significant fluctuations in the prices of raw materials such as iron ore, coke, and oil, which may lead to reduced profits and unmet operational expectations[86] Operational Efficiency and Innovation - The company emphasized innovation and efficiency improvements, leading to enhanced management levels and operational performance[30] - The company achieved significant improvements in production efficiency and capacity, with a focus on optimizing operations and reducing converter steel consumption[32] - The digital transformation initiative "Smart New Steel" has been launched, enhancing collaboration with high-tech firms and implementing multiple smart manufacturing projects[32] - The company aims to enhance production efficiency by reducing raw material procurement costs and optimizing coal and ore blending, aiming for a significant reduction in production costs[76] Environmental Responsibility - Environmental initiatives have led to a 58.57% increase in self-generated electricity and a 16.2 kgce/t reduction in comprehensive energy consumption per ton of steel[32] - The company has committed to achieving ultra-low emissions in key processes and completing environmental upgrade projects as part of its "Green New Steel" initiative[81] - The company has established a comprehensive internal control system covering governance, information disclosure, and risk management to ensure compliance and operational efficiency[122] - The company has maintained a 100% operational compliance rate for its environmental facilities, ensuring effective environmental management[132] Market Position and Strategy - The company aims to enhance its market competitiveness by focusing on a diverse product structure and high-value-added products[42] - The company is located in Jiangxi Province, benefiting from proximity to major markets and a favorable business environment for sustainable development[43] - The company is focused on enhancing its financial information systems and investment management strategies[104] - The company is actively pursuing energy-saving projects, including efficient power generation from gas resources and rooftop solar power generation, to improve its environmental performance[86] Governance and Management - The company has established a comprehensive governance structure, ensuring clear responsibilities among the shareholders' meeting, board of directors, and management team[88] - Independent directors are contributing to the company's management and strategic development by providing independent opinions on significant matters[89] - The company has implemented robust information disclosure management systems to ensure timely and accurate communication with investors[92] - The company has experienced changes in its board members, with several resignations due to personal or work-related reasons[104] Research and Development - The company has made progress in R&D, with breakthroughs in rare earth steel and the establishment of a full range of non-oriented electrical steel products, alongside new projects for high-grade electrical steel for electric vehicles[32] - Total R&D expenditure amounted to 231,669.52 million, representing 2.21% of operating revenue, with no capitalized R&D expenses[57] - The company plans to increase its R&D budget by 10% to foster innovation in product development[99] Employee Management - The company reported a total of 15,670 employees, with 10,873 in the parent company and 4,797 in major subsidiaries[112] - Employee income increased by over 10% due to performance-based salary adjustments and a new wage system implemented[115] - The training program for 2022 focuses on digital transformation and enhancing employee skills, with a strong emphasis on management training[116] Financial Health - The total assets at the end of the reporting period amounted to ¥11,354,711,445.12 million, with overseas assets accounting for 1.90% of total assets[62] - The company's accounts payable rose by 31.48% to ¥651,255.59 million from ¥495,318.57 million in the previous year, driven by an increase in trade payables[60] - The company reported a significant increase in tax payable, rising by 148.09% to ¥113,723.22 million from ¥45,839.26 million, due to increased corporate income tax and VAT[62] Shareholder Structure - The largest shareholder, Xinyu Steel Group Co., Ltd., holds 1,217,098,232 shares, representing 38.17% of the total shares[166] - The second-largest shareholder, Xinjing Group - Huatai United Securities, decreased its holdings by 205,513,104 shares, now holding 349,486,896 shares, which is 10.96%[166] - The controlling shareholder is Xinyu Steel Group Co., Ltd., which is a state-owned entity[170] - The actual controller of the company is the Jiangxi Provincial State-owned Assets Supervision and Administration Commission[173]