河钢股份(000709) - 2022 Q2 - 季度财报

Important Notice, Table of Contents, and Definitions This section provides the important notice, table of contents, and definitions for the semi-annual report Important Notice The company's board of directors, supervisory board, and senior management ensure the truthfulness, accuracy, and completeness of this semi-annual report and assume legal responsibility, with all directors attending the review meeting. The company plans no profit distribution for the period, including no cash dividends, bonus shares, or capital increase from capital reserves - Company management guarantees the truthfulness, accuracy, and completeness of the report content, assuming corresponding legal responsibilities[2] - The company plans no cash dividends, no bonus shares, or no capital increase from capital reserves for the 2022 semi-annual period[2] Company Profile and Key Financial Indicators This section introduces the company and presents its key financial data and performance metrics for the reporting period Company Profile Hebei Iron & Steel Co., Ltd. (stock code: 000709) is a company listed on the Shenzhen Stock Exchange, with Wang Lanyu as its legal representative Company Information | Item | Content | | :--- | :--- | | Stock Abbreviation | HBIS | | Stock Code | 000709 | | Listing Exchange | Shenzhen Stock Exchange | | Legal Representative | Wang Lanyu | Key Accounting Data and Financial Indicators In the first half of 2022, the company's performance declined, with revenue decreasing by 4.05%, net profit attributable to shareholders by 35.98%, and non-recurring net profit by 54.32%, alongside a 40.74% reduction in net cash flow from operating activities Key Financial Performance | Key Financial Indicator | Current Period (CNY) | Prior Year Period (CNY) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 71,994,339,359.53 | 75,030,623,557.55 | -4.05% | | Net Profit Attributable to Shareholders | 973,805,813.49 | 1,521,137,569.20 | -35.98% | | Net Profit Attributable to Shareholders (Excluding Non-Recurring Items) | 689,761,725.89 | 1,509,987,206.57 | -54.32% | | Net Cash Flow from Operating Activities | 5,045,439,973.61 | 8,514,790,800.48 | -40.74% | | Basic Earnings Per Share (CNY/share) | 0.094 | 0.13 | -27.69% | | Weighted Average Return on Net Assets | 1.89% | 2.66% | -0.77% | | Asset Indicators | Current Period End (CNY) | Prior Year End (CNY) | Change from Prior Year End | | Total Assets | 242,377,520,849.58 | 243,419,433,508.61 | -0.43% | | Net Assets Attributable to Shareholders | 51,029,814,256.41 | 51,036,297,850.42 | -0.01% | Non-Recurring Gains and Losses and Amounts During the reporting period, the company's total non-recurring gains and losses amounted to CNY 284.04 million, primarily from net non-operating income and expenses, including CNY 26.71 million from government subsidies Non-Recurring Items | Item | Amount (CNY) | | :--- | :--- | | Gains/Losses from Disposal of Non-Current Assets | -869,222.00 | | Government Subsidies Recognized in Current Profit/Loss | 26,712,875.77 | | Net Other Non-Operating Income and Expenses | 355,256,515.72 | | Total | 284,044,087.60 | Management Discussion and Analysis This section provides an in-depth analysis of the company's operations, financial condition, and future outlook, including key business activities, competitive advantages, and risk factors Principal Business In the first half of 2022, the company primarily engaged in the production and sale of high-quality steel and vanadium-titanium products, with an annual capacity of 30 million tons of steel and 22,000 tons of vanadium products, serving various high-end sectors - In H1 2022, the steel industry faced challenges including a 6.5% decline in crude steel output, lower-than-expected market demand, falling steel prices, and high raw material costs, leading to a significant decline in industry profitability[14] - The company's main businesses are steel and vanadium-titanium products, with an annual production capacity of 30 million tons of high-quality steel and 22,000 tons of vanadium products, serving high-end markets such as automotive, home appliances, construction, aerospace, and new energy[14] Core Competitiveness Analysis The company's core competitiveness stems from its advanced process equipment, rich product structure, leadership in energy conservation and green transformation, strong technological innovation, and strategic geographical location in North China - The company possesses world-leading process equipment, including the world's first "sub-molten salt method for efficient vanadium extraction and clean production line," offering a rich product structure renowned domestically and internationally[15] - The company has achieved significant results in green development, with its ultra-low emission control technology for multiple steel pollutants recognized, and Laoting Steel Co. rated as an A-level environmental performance enterprise[16] - The company's technological advantages are prominent, with several high-end products like high-strength galvanized steel and thick-zinc-layer galvanized sheets filling domestic gaps, and it has received multiple awards including the National Science and Technology Progress First Prize[17][18] - Located in North China, the company benefits from its proximity to Beijing-Tianjin and the Bohai Sea, allowing it to fully capitalize on development opportunities arising from Beijing-Tianjin-Hebei coordinated development and the construction of Xiong'an New Area[19] Main Business Analysis In H1 2022, the company's operating revenue decreased by 4.05% to CNY 71.99 billion, and net profit attributable to shareholders fell by 35.98% to CNY 974 million, with steel products, particularly plates, remaining the primary revenue source Production Indicators | Production Indicator | H1 2022 Output | | :--- | :--- | | Pig Iron Production | 14.36 million tons | | Crude Steel Production | 13.83 million tons | | Steel Product Production | 13.10 million tons | | Vanadium Slag Production | 79,200 tons | Key Financial Data | Key Financial Data | Current Period (CNY) | Prior Year Period (CNY) | YoY Change | Main Reasons for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 71,994,339,359.53 | 75,030,623,557.55 | -4.05% | - | | Income Tax Expense | 237,350,552.60 | 503,620,776.79 | -52.87% | Lower operating profit this year | | Net Cash Flow from Operating Activities | 5,045,439,973.61 | 8,514,790,800.48 | -40.74% | Decreased cash inflow due to price decline | | Net Cash Flow from Investing Activities | -683,279,491.59 | -3,185,402,448.78 | -78.55% | Reduced long-term asset expenditures | | Net Cash Flow from Financing Activities | -4,756,051,894.51 | 765,208,122.00 | -721.54% | Increased repayment of financing | Revenue Composition (by Product) | Revenue Composition (by Product) | Current Period Revenue (CNY) | Proportion | YoY Change | | :--- | :--- | :--- | :--- | | Plates | 48,342,551,923.78 | 67.15% | -8.18% | | Bars and Sections | 10,019,740,428.10 | 13.92% | 9.07% | | Wire Rods, Strips, etc. | 3,187,861,608.84 | 4.43% | 61.94% | | Vanadium Products | 905,193,816.80 | 1.26% | 21.64% | Non-Principal Business Analysis Non-principal business activities significantly impacted total profit during the reporting period, with investment income and non-operating income contributing 26.40% and 27.55% respectively, and investment income from associates being sustainable Impact of Non-Principal Business on Total Profit | Item | Amount (CNY) | Proportion of Total Profit | Reason for Formation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 348,110,708.98 | 26.40% | Profit from associate companies | Yes | | Non-Operating Income | 363,227,623.64 | 27.55% | - | No | Assets and Liabilities Analysis As of the reporting period end, total assets slightly decreased by 0.43% to CNY 242.38 billion, with fixed assets being the largest component and construction in progress increasing, while short-term borrowings constituted the primary liability - Construction in progress as a percentage of total assets increased from 8.71% at the end of the previous year to 11.04%, indicating ongoing investment activities by the company[28] Restricted Assets | Restricted Asset Item | Restricted Amount (CNY) | Reason for Restriction | | :--- | :--- | :--- | | Monetary Funds | 9,223,532,701.78 | Letter of credit margin, bill margin | | Fixed Assets | 10,600,023,719.30 | Finance lease assets | | Intangible Assets | 11,883,726.88 | Mortgage loan | | Total | 19,835,440,147.96 | - | Analysis of Major Holding and Associate Companies During the reporting period, the company's major subsidiaries, primarily engaged in steel and billet processing, all achieved profitability, with Hebei Laoting Iron & Steel Co., Ltd. being the top performer in revenue and net profit Major Subsidiaries' Performance | Company Name | Type | Operating Revenue (CNY) | Net Profit (CNY) | | :--- | :--- | :--- | :--- | | Handan Baosteel Co. | Subsidiary | 16,840,547,389.02 | 60,002,981.91 | | Medium-Thick Plate Co. | Subsidiary | 8,200,954,622.13 | 18,073,038.64 | | Hebei Laoting Iron & Steel Co., Ltd. | Subsidiary | 15,903,025,562.73 | 168,373,409.47 | Risks and Countermeasures The company faces significant environmental, operational, and financial risks, including production restrictions due to environmental regulations, declining steel prices amidst high raw material costs, and a high asset-liability ratio, for which it has developed corresponding mitigation strategies - The company faces key risks including: - Environmental Protection Risk: Located in the key air pollution control area of Beijing-Tianjin-Hebei, facing production restrictions during heavy pollution and challenges from "carbon peaking and carbon neutrality" initiatives - Operational Risk: Dual pressure from continuously falling steel prices and high raw material costs - Financial Risk: High asset-liability ratio, susceptible to changes in national credit policies[37][38] - Company countermeasures include: - Environmental: Optimizing production organization under restricted output, accelerating ultra-low emission upgrades, and researching carbon emission policies - Operational: Deepening efficiency improvements, optimizing product structure, and strengthening strategic cooperation with suppliers to reduce procurement costs - Financial: Enhancing integrated capital management, adjusting debt structure through various financing methods, and ensuring cash flow safety[37][38] Corporate Governance This section outlines the company's corporate governance structure and activities, including shareholder meetings, management stability, and profit distribution policies Overview of Corporate Governance During the reporting period, the company held two shareholder meetings, maintained stable board and management personnel, and decided against semi-annual profit distribution or equity incentive plans - Two shareholder meetings were held during the reporting period: the 2022 First Extraordinary General Meeting and the 2021 Annual General Meeting[39] - There were no changes in the company's directors, supervisors, or senior management during the reporting period[39] - The company's semi-annual profit distribution plan is no cash dividends, no bonus shares, and no capital increase from capital reserves[40] Environmental and Social Responsibility This section details the company's environmental performance, including its status as a key pollutant emitter, compliance with emission standards, and efforts in pollution control and carbon reduction, along with its social responsibility initiatives Major Environmental Issues The company and its subsidiaries are designated key pollutant emitters, but all emissions comply with ultra-low standards, with no exceedances reported, and the company actively implements environmental protection measures and emergency plans - The company and its subsidiaries (e.g., Hebei Laoting, Medium-Thick Plate Co., Handan Branch) are classified as key pollutant-discharging entities, with primary pollutants being particulate matter, sulfur dioxide, and nitrogen oxides[42][43][44] - During the reporting period, pollutant emission concentrations and total amounts for all units were within the approved emission standards, with no instances of exceeding limits[42][43][44] - The company actively promotes environmental governance; Laoting Steel Co.'s air pollution control facilities fully meet ultra-low emission requirements, and multiple comprehensive air pollution control projects have been implemented. All subsidiaries have obtained pollution discharge permits and established emergency response plans for environmental incidents[46][48] - To reduce carbon emissions, the company employs technical measures such as sintering flue gas recirculation and new energy vehicle substitution[49] Significant Matters This section covers important events and ongoing commitments, including the fulfillment of past promises, significant related-party transactions, and other material developments Fulfillment of Commitments During the reporting period, the controlling shareholder, HBIS Group, and related parties continued to fulfill historical commitments regarding avoiding horizontal competition and land/property rights, stemming from the 2010 asset restructuring - HBIS Group's long-term commitment to resolve horizontal competition with the listed company through asset injection, entrusted management, and other means is currently ongoing[51] Significant Related-Party Transactions The company engaged in significant daily related-party transactions totaling CNY 71.86 billion in H1 2022, primarily for raw material procurement and product sales, remaining within the approved annual limit, and maintained substantial deposits with an affiliated finance company - In H1 2022, the company's total daily related-party transactions amounted to CNY 71.86 billion, approximately 49.9% of the annual approved limit of CNY 144.055 billion, primarily involving the procurement and sale of steel, ore, coke, and other raw materials and products[53][54] Related-Party Financial Company Transactions | Related-Party Financial Company Transactions | Period-End Balance (CNY 10,000) | | :--- | :--- | | Deposit Business | 1,116,505.61 | | Loan Business | 0 | | Actual Credit Line Utilization | 190,763 | Other Significant Matters As of the reporting period end, the company received CNY 14.17 billion in compensation for the Tangshan Branch relocation, representing 42.42% of the total due, with delayed land disposal leading to a slower collection pace and triggering penalty payments - Compensation for the Tangshan Branch relocation totaled CNY 14.17 billion received, representing 42.42% of the total amount due, with collection progress lagging behind the original schedule[61] Share Changes and Shareholder Information This section details the company's share capital structure, any changes during the period, and information on its shareholders, including the total number of shareholders and major holdings Share Changes As of the reporting period end, the company's total share capital remained unchanged at 10,618,607,852 shares, with unrestricted shares accounting for 99.98% - The company's total share capital remained unchanged at 10,618,607,852 shares during the reporting period[64] Shareholder Numbers and Shareholding Structure As of the reporting period end, the company had 286,258 common shareholders, with the top three shareholders, all state-owned legal entities, collectively holding over 61% of the shares, led by Handan Iron & Steel Group Co., Ltd. at 39.73% Top Shareholders | Shareholder Name | Shareholder Nature | Shareholding Proportion | | :--- | :--- | :--- | | Handan Iron & Steel Group Co., Ltd. | State-owned Legal Entity | 39.73% | | Tangshan Iron & Steel Group Co., Ltd. | State-owned Legal Entity | 17.45% | | Chengde Iron & Steel Group Co., Ltd. | State-owned Legal Entity | 4.07% | | Hong Kong Securities Clearing Company Limited | Overseas Legal Entity | 1.70% | | China Securities Finance Corporation Limited | Domestic Non-State-owned Legal Entity | 1.24% | - Handan Iron & Steel Group, Tangshan Iron & Steel Group, Chengde Iron & Steel Group, and Hebei Iron & Steel Group Mining Co., Ltd. among the top ten shareholders are related parties, all controlled by HBIS Group Co., Ltd[68] Bond-Related Information This section provides details on the company's outstanding corporate and enterprise bonds, including their balances, interest rates, maturity dates, and an analysis of key financial indicators related to debt Enterprise Bonds As of the reporting period end, the company had one outstanding enterprise bond, "18 HBIS G1," with a balance of CNY 700 million and an interest rate of 5.42%, maturing on March 26, 2023 Outstanding Enterprise Bonds | Bond Abbreviation | Bond Code | Bond Balance (CNY) | Interest Rate | Maturity Date | | :--- | :--- | :--- | :--- | :--- | | 18 HBIS G1 | 111071 | 700,000,000.00 | 5.42% | 2023-03-26 | Corporate Bonds As of the reporting period end, the company had five outstanding corporate bonds totaling CNY 7.5 billion, including four regular corporate bonds and one newly issued perpetual bond, "22 HBIS Y1," in July 2022 Outstanding Corporate Bonds | Bond Abbreviation | Bond Code | Bond Balance (CNY) | Interest Rate | Maturity Date | | :--- | :--- | :--- | :--- | :--- | | 19 HBIS 01 | 112999 | 1,500,000,000.00 | 4.08% | 2024-11-26 | | 19 HBIS 02 | 149011 | 1,500,000,000.00 | 4.11% | 2024-12-12 | | 20HBIS01 | 149099 | 1,500,000,000.00 | 3.38% | 2025-04-20 | | 20HBIS02 | 149181 | 1,500,000,000.00 | 4.20% | 2025-07-30 | | 22 HBIS Y1 | 149971 | 1,500,000,000.00 | 3.40% | 2024-07-05 | Key Financial Indicators for the Past Two Years As of the reporting period end, the company's asset-liability ratio was 74.31%, a 0.67 percentage point decrease from the previous year-end, while interest coverage ratios declined, indicating increased short-term debt pressure Key Financial Indicators | Item | Current Period End/Current Period | Prior Year End/Prior Year Period | Change | | :--- | :--- | :--- | :--- | | Asset-Liability Ratio | 74.31% | 74.98% | -0.67% | | Interest Coverage Ratio | 1.42 | 1.66 | -14.46% | | Cash Interest Coverage Ratio | 2.94 | 4.34 | -32.26% | | Loan Repayment Rate | 100.00% | 100.00% | 0.00% | Financial Report This section presents the company's unaudited semi-annual financial statements, including the balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for both consolidated and parent company levels, along with detailed notes Audit Report The company's 2022 semi-annual financial report was not audited - The company's semi-annual financial report was unaudited[79] Financial Statements This section provides the company's key financial statements for the first half of 2022, including consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity Consolidated Balance Sheet Parent Company Balance Sheet Consolidated Income Statement Parent Company Income Statement Consolidated Cash Flow Statement Parent Company Cash Flow Statement Consolidated Statement of Changes in Owners' Equity Parent Company Statement of Changes in Owners' Equity Notes to Financial Statements The notes to the financial statements detail the company's general information, basis of preparation, significant accounting policies and estimates, taxation, and provide comprehensive explanations for major consolidated financial statement items, related party disclosures, contingencies, and other significant matters