BSGCO(SZ:000959)2023-04-20 16:00Financial Performance - The company reported a net profit that has been negative for the last three accounting years, indicating ongoing challenges in maintaining sustainable operations [12]. - The company's operating revenue for 2022 was ¥118.14 billion, a decrease of 11.16% compared to ¥134.03 billion in 2021 [13]. - Net profit attributable to shareholders for 2022 was ¥1.12 billion, down 84.18% from ¥7.01 billion in 2021 [13]. - The net profit after deducting non-recurring gains and losses was ¥1.05 billion, a decline of 84.99% compared to ¥7.01 billion in 2021 [13]. - The net cash flow from operating activities for 2022 was ¥10.04 billion, a decrease of 34.75% from ¥15.04 billion in 2021 [13]. - Basic and diluted earnings per share for 2022 were both ¥0.1496, down 86.92% from ¥1.1291 in 2021 [13]. - The weighted average return on net assets was 2.42%, a decrease of 17 percentage points from 19.07% in 2021 [13]. - Total assets at the end of 2022 were ¥143.17 billion, a decrease of 4.19% from ¥147.21 billion at the end of 2021 [13]. - Net assets attributable to shareholders at the end of 2022 were ¥47.95 billion, an increase of 15.13% from ¥41.83 billion at the end of 2021 [13]. - In Q4 2022, the company reported a net loss attributable to shareholders of -¥655 million, following a profit of ¥18.37 million in Q3 2022 [14]. Dividend and Shareholder Policies - The company plans not to distribute cash dividends or issue bonus shares for the current fiscal year [3]. - The company emphasizes the protection of minority shareholders' rights and has established clear cash dividend policies [78]. - The company has not made any adjustments to its cash dividend policy during the reporting period [78]. Risk Management and Compliance - The company has detailed its risk factors in the management discussion and analysis section of the report [3]. - The board of directors and management have ensured the accuracy and completeness of the financial report, taking legal responsibility for its content [2]. - The company has established a comprehensive internal control system with 529 regulations, including 516 self-developed and 13 forwarded from government and regulatory agencies [82]. - The company has implemented a risk management-oriented compliance management system, achieving full compliance without any major compliance risks [55]. - The company has a clear asset ownership structure, maintaining independence from its controlling shareholder and related parties [55]. Research and Development - The company invested CNY 5.386 billion in R&D in 2022, representing 9% of its total revenue, highlighting its commitment to technological advancement [17]. - The company’s R&D investment amounted to approximately ¥5.39 billion, representing a 1.21% increase from the previous year [31]. - R&D investment accounted for 4.56% of total revenue, up from 4.00% in the previous year, indicating a 0.56% increase [31]. - The number of R&D personnel increased to 2,342, with a slight decrease in the proportion of R&D staff to total employees from 12.86% to 12.59% [31]. Market and Industry Trends - In 2022, the steel industry in China faced a significant downturn, with key steel companies reporting a total revenue of CNY 6.5875 trillion, a decrease of 6.35% year-on-year, and a total profit of CNY 98.2 billion, down 72.27% year-on-year [17]. - The overall steel market in 2022 was characterized by high production, high inventory, high costs, and low demand, leading to significant losses in the industry [17]. - The company is expected to enhance its iron ore resource capacity with the upcoming production from the Ma Cheng iron ore mine, projected to reach an annual capacity of 7 million tons by the end of 2023 [19]. - The company anticipates a gradual economic recovery in China, with a more pronounced upward trend in the second half of 2023, despite facing significant operational pressures in the steel industry [48]. Environmental Initiatives - The company achieved a significant breakthrough in green low-carbon initiatives, becoming the world's first to realize ultra-low emissions across all processes [18]. - The company has implemented environmental protection measures in all construction projects, adhering to the "three simultaneous" management requirements [84]. - The company maintained a zero exceedance rate for all monitored pollutants during the reporting period [85]. - The company has extended its pollutant discharge permit for its subsidiary, valid until February 2028 [84]. - The company achieved a water recycling rate of 98.4% through advanced membrane treatment processes in wastewater treatment facilities [89]. Strategic Planning and Future Outlook - The company plans to focus on market expansion and new product development to improve future performance [23]. - The company aims to enhance its high-end product development, focusing on electrical steel, automotive sheets, and tin-plated (chromium-plated) sheets to improve service levels and operational efficiency [48]. - The company is committed to a dual-driven strategy of "capital + operation" to promote deep reforms and high-quality development in the steel industry [48]. - The company is exploring opportunities for market expansion and potential mergers and acquisitions to drive growth [65]. Corporate Governance - The company has a complete procurement, production, marketing, and management system, allowing for independent operations and risk management [55]. - The company has maintained a consistent board structure with all directors and supervisors in their current roles since December 23, 2022 [59]. - The company conducted shareholder meetings using a hybrid model of on-site and online voting to ensure legal compliance [55]. - The company has not reported any dissent from board members regarding company matters during the reporting period [74]. Employee and Talent Development - The company has established a comprehensive training system to enhance talent development, with several employees receiving notable awards in 2022 [19]. - The company has implemented a structured talent development program with five levels to enhance employee capabilities [77]. - The company conducted over 130 training programs throughout the year, focusing on enhancing management, technical, and operational skills [77].