LIUSTEELCO(SH:601003)2019-03-28 16:00Financial Performance - In 2018, the company achieved a net profit of CNY 4,609,698,845.79, representing a 74.20% increase compared to CNY 2,646,176,293.67 in 2017[6]. - The total operating revenue for 2018 was CNY 47,351,110,185.21, which is a 13.94% increase from CNY 41,557,169,054.26 in 2017[23]. - The net cash flow from operating activities reached CNY 5,651,591,911.39, up 22.53% from CNY 4,612,592,644.16 in the previous year[23]. - The company's total assets at the end of 2018 were CNY 24,950,844,655.07, an 8.13% increase from CNY 23,073,917,245.23 at the end of 2017[23]. - The net assets attributable to shareholders of the listed company increased by 46.25% to CNY 10,528,595,824.72 from CNY 7,199,197,932.14 in 2017[23]. - Basic earnings per share for 2018 were CNY 1.7987, a 74.21% increase from CNY 1.0325 in 2017[23]. - The weighted average return on net assets was 52.64% in 2018, an increase of 7.94 percentage points from 44.70% in 2017[23]. - The total profit for the period was 5.39 billion RMB, with a tax contribution of 2.38 billion RMB[65]. - The company reported a profit before tax of 5.39 billion CNY, representing a 77.41% year-on-year growth[80]. Dividend Policy - The company plans to distribute a cash dividend of CNY 6 per 10 shares, pending approval at the annual shareholders' meeting[6]. - The cash dividends distributed in the last three years accounted for 33.36% of the net profit attributable to ordinary shareholders in 2018, 48.42% in 2017, and 39.14% in 2016[111]. - The company will distribute at least 10% of the distributable profit as cash dividends in profitable years, provided that certain conditions are met[109]. - The company has a policy of prioritizing cash dividends, with the option to distribute stock dividends under specific conditions[109]. - The company has not proposed a cash dividend distribution plan for the current year despite having positive distributable profits, and will disclose the reasons and intended use of retained earnings if applicable[112]. - The company’s profit distribution policy emphasizes continuity and stability, considering the interests of all shareholders and sustainable development[109]. Market and Sales Performance - In 2018, the company's main business revenue reached 44.489 billion yuan, representing a year-on-year growth of 14.45%[50]. - The company has a strong market presence in South China and has expanded its reach to Southeast Asia, Europe, and Africa[35]. - The e-commerce business generated revenue of CNY 363 million in 2018, with 2,058 registered members on the platform[40]. - The sales channels include distributors, direct supply to end customers, and e-commerce, with a focus on adapting to market demands[40]. - The company focused on market expansion in key regions such as East China, Hainan, and the Guangdong-Hong Kong-Macao Greater Bay Area[42]. Production and Capacity - The company has a total ironmaking capacity of 11.5 million tons, with specific capacities of 2.6 million tons for a 2750m³ blast furnace and 2.24 million tons for a 2650m³ blast furnace[54]. - The steelmaking capacity totals 12.5 million tons, with 8.25 million tons from five 150-ton converters and 4.25 million tons from three 120-ton converters[54]. - The company produced 19 large-scale production line switches and product adjustments throughout the year to maximize the efficiency of limited steel billets[55]. - The production volumes for iron, steel, and steel products were 12.15 million tons, 13.08 million tons, and 7.65 million tons, reflecting increases of 5.65%, 6.34%, and 5.96% respectively[65]. - The company achieved a steel production target of 12.5 million tons, with a profit target of 2 billion RMB for the upcoming year[103]. Research and Development - The company has established a comprehensive "research-production-sales-service" development chain for new product development, collaborating with universities and research institutions[37]. - Research and development expenses surged by 425.95% to 267.11 million RMB, indicating a strong focus on innovation[66]. - The company developed 15 new grades of 65Mn spring steel, resulting in 36 authorized patents[47]. - The number of R&D personnel was 79, making up 0.81% of the total workforce[83]. Environmental Initiatives - The company maintained a zero environmental pollution accident record, with industrial wastewater treatment achieving 100% compliance[47]. - The company has achieved an 80% self-generated electricity rate through various CO2 reduction projects, including dry quenching and TRT high furnace gas power generation, leading to significant contributions to CO2 emissions reduction[136]. - The company has established three industrial wastewater treatment stations, with an investment of CNY 120 million, achieving a total recycled and treated water volume of 51 million tons, contributing to near-zero industrial wastewater discharge[134]. - The company has reduced total nitrogen pollutants in coking wastewater by 76% through the operation of a post-denitrification system, which was completed with an investment of CNY 30 million[134]. Governance and Compliance - The company has implemented a governance structure that complies with the requirements of the China Securities Regulatory Commission, ensuring the separation of ownership and management rights[179]. - The board of directors held 7 meetings during the year, with all directors attending in person[185]. - The independent directors have actively fulfilled their responsibilities, particularly in protecting the rights of minority shareholders[182]. - The company has maintained transparency in information disclosure, adhering to legal requirements and ensuring timely updates to stakeholders[182]. Shareholder Information - The total number of common stock shareholders reached 64,503, an increase from 57,632 in the previous month[145]. - The largest shareholder, Guangxi Liuzhou Steel Group Co., Ltd., holds 1,910,963,595 shares, representing 74.57% of total shares[145]. - The company has no strategic investors or major shareholders due to new share placements[148]. - There are no reported changes in the controlling shareholder during the reporting period[151]. Legal Matters - The company is involved in significant litigation, including a case against Huaxia Bank for RMB 1,700 million related to a bill dispute, with a final judgment requiring payment and interest[120]. - The company has ongoing litigation with Xiamen Tuoxing Group for RMB 1,637.64 million, with a court ruling requiring immediate payment, although execution was terminated due to lack of assets[120]. - The company has successfully defended against a financial loan contract dispute with Industrial and Commercial Bank of China, resulting in a complete victory[120].