STSS(SZ:000825)2023-08-24 16:00Financial Performance - The company's operating revenue for the first half of 2023 was ¥53.66 billion, an increase of 6.57% compared to ¥50.35 billion in the same period last year[13]. - The net profit attributable to shareholders for the first half of 2023 was a loss of ¥495.49 million, a decrease of 124.63% from a profit of ¥2.01 billion in the previous year[13]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was a loss of ¥670.88 million, down 134.38% from ¥1.95 billion in the same period last year[13]. - The net cash flow from operating activities was ¥1.37 billion, a decrease of 7.29% compared to ¥1.48 billion in the previous year[13]. - The basic earnings per share for the first half of 2023 was -¥0.087, a decline of 124.65% from ¥0.353 in the same period last year[13]. - The total assets at the end of the reporting period were ¥71.31 billion, a decrease of 2.12% from ¥72.86 billion at the end of the previous year[13]. - The net assets attributable to shareholders at the end of the reporting period were ¥34.18 billion, down 1.85% from ¥34.83 billion at the end of the previous year[13]. - The company reported a net profit of 11,280.96 yuan from its subsidiary Shanxi Taigang Stainless Steel Precision Strip Co., Ltd[53]. - The company anticipates continued challenges in profitability due to a prolonged downturn in the steel industry, with weak supply and demand fundamentals expected to persist[55]. Revenue and Costs - The company’s revenue for the steel industry in the first half of 2023 was approximately ¥31.91 billion, a decrease of 5.6% year-on-year, while total profit dropped by 68.8% to approximately ¥330 million[20]. - The cost of sales increased by 13.20% to ¥53.18 billion from ¥46.98 billion, indicating rising production costs[36]. - Total operating costs increased to ¥54.28 billion, up 13.1% from ¥47.98 billion year-over-year[120]. - The company has reduced costs by approximately ¥1.41 billion through various efficiency measures, with production at the Taiyuan base increasing by 30.52 thousand tons year-on-year[24]. Production and Market Position - In the first half of 2023, the company achieved a crude steel production of 6.898 million tons, with stainless steel production at 2.614 million tons, maintaining a leading profit margin in the industry[22]. - The company has achieved a market share of 70% for its nickel-based alloy thick plates, which is the largest in the world[23]. - Stainless steel products accounted for 64.65% of total revenue, with sales amounting to ¥34.69 billion, up 12.74% from ¥30.77 billion[37]. - The average price of 304 cold-rolled sheets in Wuxi market fell by 17.3% year-on-year to ¥16,523 per ton, indicating a significant decline in steel prices compared to raw material prices[20]. Investments and Financial Management - Total investments during the reporting period were ¥2.98 billion, a significant increase of 74.95% compared to ¥1.70 billion in the same period last year[44]. - The company completed a major equity investment of ¥445.09 million in Baowu Water, acquiring a 9.83% stake[45]. - The company has established strategic partnerships for resource stability in niobium and coal, enhancing its resource security[29]. - The company reported an investment income of ¥259.20 million, a substantial increase from ¥87.11 million in the previous year, reflecting improved performance in joint ventures[121]. Environmental and Social Responsibility - The company is committed to ensuring the accuracy and completeness of its financial reports, as stated by its management[2]. - The company aims to achieve "carbon peak and carbon neutrality" and has initiated actions to create ultra-low emission AA enterprises[33]. - The company has implemented 11 ultra-low emission AA projects, enhancing its green and low-carbon development capabilities[28]. - The company actively participates in social responsibility initiatives, including poverty alleviation efforts in two counties, with a total investment of CNY 4.9164 million in local agricultural products[78]. Related Party Transactions - The company engaged in related party transactions with its parent company, Tai Steel Group, amounting to 580,353.41 thousand CNY for raw materials, representing 11.92% of similar transaction amounts[84]. - The total amount of related party transactions with subsidiaries of Tai Steel Group reached 821,121.53 thousand CNY for raw materials, which is 16.87% of similar transaction amounts[84]. - The company reported a procurement of engineering and other services from subsidiaries totaling 4,815.53 million CNY, representing 3.28% of similar transaction amounts[85]. Shareholder and Capital Structure - The largest shareholder, Taiyuan Iron and Steel (Group) Co., Ltd., holds 62.93% of the total shares, amounting to 3,606,454,334 shares[103]. - The company completed the repurchase and cancellation of 870,000 restricted shares, reducing the total share capital from 5,731,717,796 shares to 5,730,847,796 shares, which is a decrease of 0.0152%[99]. - The total number of ordinary shareholders at the end of the reporting period was 176,478, with 5% or more shareholders being 8[103]. Accounting and Financial Reporting - The company operates under the accounting standards issued by the Ministry of Finance, ensuring compliance and accurate financial reporting[143]. - The financial report for the first half of 2023 was not audited[112]. - The company recognizes financial assets when it becomes a party to the financial instrument contract[152]. - Revenue is recognized when control of the goods or services is transferred to the customer, typically at the point of sale[194].