BSP(SZ:000761)2021-04-27 16:00Financial Performance - The company's operating revenue for 2020 was ¥48,684,792,685.58, a decrease of 7.69% compared to ¥52,741,353,582.28 in 2019[29]. - The net profit attributable to shareholders for 2020 was ¥384,252,740.78, down 30.85% from ¥555,646,971.40 in 2019[29]. - Basic earnings per share for 2020 were ¥0.099, a decrease of 30.77% from ¥0.143 in 2019[29]. - Total assets at the end of 2020 were ¥65,007,470,749.20, an increase of 7.04% from ¥60,731,425,193.90 at the end of 2019[29]. - The net assets attributable to shareholders increased by 7.85% to ¥21,018,296,389.10 from ¥19,487,665,261.17 in 2019[32]. - The company reported a weighted average return on equity of 1.90% for 2020, down from 2.88% in 2019[29]. - The gross profit margin for the industrial sector was 4.71%, down by 1.98% year-on-year[61]. - The company achieved a net profit attributable to the parent company of ¥384,252,740.78 for the year 2020, with an unallocated profit balance of ¥2,692,018,405.40[125]. Cash Flow and Investments - The net cash flow from operating activities was negative at ¥-2,039,000,213.29, a decline of 129.22% compared to ¥6,977,824,041.16 in 2019[29]. - The company reported a net cash flow from operating activities of -¥2,039,000,000.00 for the year, with negative cash flows in Q2, Q3, and Q4[34]. - Cash inflows from investment activities decreased by 74% year-on-year, mainly due to reduced cash recovered from purchased financial products[82]. - Cash outflows from investment activities increased by 35.12%, attributed to higher cash payments for investments[82]. - The net cash flow from financing activities increased by 234.80%, primarily due to the issuance of convertible bonds[82]. - The total cash and cash equivalents decreased by 349.40% compared to the previous year[82]. - The total amount of raised funds in 2020 through convertible bonds was 675,920,000, with 246,295.97 already utilized[98]. - The cumulative amount of unused raised funds was 498,445.13, primarily held in deposits[98]. Dividends and Profit Distribution - The company plans to distribute a cash dividend of ¥0.1 per 10 shares, based on a total of 3,875,371,532 shares[8]. - A cash dividend of ¥0.1 per 10 shares (including tax) is proposed, totaling ¥38,753,715.32, with ¥2,653,264,690.08 carried forward to the next year[125]. - The cash dividend payout ratio for 2020 is 10.09% of the net profit attributable to shareholders, compared to 18.69% in 2018[130]. - The retained earnings after the 2020 profit distribution will be 2,653,264,690.08 yuan, which will be carried forward to the next fiscal year[131]. - The company has committed to maintaining a minimum cash dividend ratio of 20% during its growth phase, considering significant capital expenditures[131]. Operational Highlights - The company produced 10.069 million tons of pig iron, a year-on-year increase of 3.52%[56]. - The production of special steel increased by 48.21% year-on-year, reaching 721,000 tons[56]. - The company achieved a total sales volume of 12,968,385.12 tons in 2020, reflecting a year-on-year increase of 0.25%[66]. - The company developed 36 new product varieties, including high-strength dual-phase steel CP980, filling a gap in cold-rolled production[49]. - The company maintained stable production and operations despite initial impacts from the global pandemic, supported by government policies[45]. Research and Development - Research and development investment reached 1,541,000,000.00 CNY in 2020, representing a 19.73% increase from 2019 and accounting for 3.17% of operating revenue[78]. - The number of R&D personnel increased to 1,732, up 6.13% from the previous year, with R&D personnel now making up 10.34% of the workforce[78]. - The company achieved a 21.2% increase in patent applications, with 211 patents accepted and 108 patents granted, including 16 invention patents[50]. Risk Management - The company has outlined risks and countermeasures in its report, emphasizing the importance of investor awareness regarding investment risks[7]. - The company faces risks from raw material price fluctuations, particularly iron ore and coal, which have seen significant price increases impacting profitability[120]. - Environmental risks are heightened due to national carbon reduction goals, prompting the company to enhance energy recycling and comply with stricter environmental standards[120]. - The company is implementing measures to mitigate risks from the COVID-19 pandemic, including strict health protocols and employee education[120]. Compliance and Governance - The company has not reported any changes in its main business since its listing[27]. - The company has committed to avoiding any competition with its parent group and other controlled entities, ensuring that no similar products are developed or produced during its tenure as a controlling shareholder[156]. - The company has established a long-term commitment to maintain its independent operations and decision-making processes, ensuring the protection of its assets and interests from any potential conflicts with its parent group[170]. - The company strictly managed raised funds according to the Shenzhen Stock Exchange regulations, ensuring legal and effective usage[102]. Accounting and Auditing - The company has not made any significant changes to its accounting policies or estimates compared to the previous year's financial report, ensuring consistency in financial reporting[172]. - The company implemented the new revenue recognition standard starting January 1, 2020, resulting in a decrease in advance receipts by approximately ¥4.43 billion and an increase in contract liabilities by approximately ¥3.92 billion[174]. - The company engaged Lixin Accounting Firm for auditing services, with a fee of ¥2.8 million, and has maintained this auditor for 13 consecutive years[184].