STSS(SZ:000825)2022-04-22 16:00Financial Performance - The company reported a significant increase in revenue, with a year-on-year growth of 15% in 2021[16]. - The company's operating revenue for 2021 was approximately ¥101.44 billion, representing a 50.46% increase compared to ¥67.42 billion in 2020[21]. - The net profit attributable to shareholders for 2021 reached approximately ¥6.31 billion, a significant increase of 263.63% from ¥1.74 billion in 2020[21]. - The net profit after deducting non-recurring gains and losses was approximately ¥6.29 billion, up 280.15% from ¥1.65 billion in 2020[21]. - The net cash flow from operating activities for 2021 was approximately ¥15.77 billion, an increase of 128.98% compared to ¥6.89 billion in 2020[21]. - The basic earnings per share for 2021 was ¥1.108, a 263.28% increase from ¥0.305 in 2020[21]. - The total assets at the end of 2021 were approximately ¥67.60 billion, a slight decrease of 1.02% from ¥68.30 billion at the end of 2020[21]. - The net assets attributable to shareholders at the end of 2021 were approximately ¥35.07 billion, reflecting a 6.56% increase from ¥32.91 billion at the end of 2020[21]. - The company achieved a net profit of ¥62.48 billion in 2021, with significant asset impairment provisions of ¥17.49 billion and depreciation and amortization of ¥33.60 billion[90]. Dividend Distribution - The company plans to distribute a cash dividend of 0.60 CNY per 10 shares to all shareholders, based on a total of 5,696,247,796 shares[5]. - The company distributed a cash dividend of ¥341,774,867.76, which is 5.42% of the net profit attributable to shareholders of the parent company[173]. - The company has maintained a cash dividend policy that aligns with the interests of minority investors, ensuring transparency and compliance with regulations[172]. Market and Production - The company is focusing on expanding its market presence and enhancing its product offerings through new technology development[16]. - In 2021, the company produced 12.73 million tons of steel, including 4.47 million tons of stainless steel, and sold 12.08 million tons of steel, with 4.14 million tons being stainless steel[45]. - Stainless steel products accounted for ¥57.28 billion, or 56.47% of total revenue, with a year-on-year growth of 38.66%[67]. - The company achieved a 60.28% increase in direct sales revenue, amounting to ¥82.77 billion, compared to ¥51.64 billion in the previous year[67]. - The company aims to produce 12.69 million tons of steel in 2022, including 4.5 million tons of stainless steel[118]. Research and Development - Research and development expenses increased by 56.50% to ¥3.36 billion, reflecting the company's commitment to enhancing R&D investment[82]. - The company plans to enhance the quality of its products through various R&D projects, including improving the yield of X70 grade pipeline steel and reducing defect rates in stainless steel products[85]. - The company has established a comprehensive technology innovation system, recognized as a "National Technology Innovation Demonstration Enterprise" and "National High-tech Enterprise"[40]. - The number of R&D personnel rose to 2,722 in 2021, a 1.42% increase from 2,684 in 2020, with the proportion of R&D staff in the total workforce increasing to 15.93%[86]. Environmental Responsibility - The company has maintained its commitment to environmental and social responsibility initiatives, as detailed in its annual report[16]. - The average dust emission in the factory area decreased by 19.2% year-on-year, reflecting the company's commitment to environmental sustainability[62]. - The company is committed to green development, achieving low emissions and being recognized as a leading green factory in the steel industry[42]. - The company achieved a carbon emission intensity reduction of 2.68% year-on-year in 2021 through various energy efficiency measures[198]. - The company has implemented measures to ensure compliance with environmental regulations, reflecting its commitment to sustainability[186]. Risk Management - The company has identified key risks in its operations and has outlined measures to mitigate these risks in its management discussion[5]. - The company has established a futures hedging business system to mitigate operational risks associated with raw material and inventory price fluctuations[107]. - The company is enhancing risk management capabilities by implementing a comprehensive risk assessment and warning system, ensuring operational safety[125]. Corporate Governance - The company has established a complete governance structure in compliance with relevant laws and regulations, ensuring the protection of shareholder rights[133]. - The company operates independently from its controlling shareholder in terms of business, assets, personnel, finance, and organization[135]. - The company is committed to achieving differentiated operations to maintain shareholder interests, particularly for minority shareholders[137]. - The company has implemented a stock incentive plan, pending approval from the State-owned Assets Supervision and Administration Commission and the shareholders' meeting[174]. Employee and Management Changes - The total number of employees at the end of the reporting period is 17,087, including 15,972 at the parent company and 1,115 at major subsidiaries[167]. - The company experienced a leadership change with the resignation of Chairman Gao Jianbing on March 22, 2021, due to other work commitments[141]. - The company is undergoing a restructuring of its board and management, with several key personnel changes in 2021[145]. Strategic Goals - The company aims to optimize logistics and reduce logistics costs to improve efficiency[122]. - The company will implement a dual control action plan for energy consumption and enhance energy efficiency[123]. - The company plans to develop 3 globally first products and 10 mission-critical products in the stainless steel sector[118].