Financial Performance - Revenue rose by 7.2% to RMB 79.3 billion, with a decline in revenue from self-produced steel products by 2.5% to RMB 27.51 billion[2] - EBITDA decreased by 45.7% to RMB 1.279 billion, with an EBITDA margin dropping to 2.8% from 4.8%[3] - The company reported a net loss attributable to equity holders of RMB 1.60 billion, a decline of 119.8% compared to a profit of RMB 808 million in the previous year[3] - The total comprehensive loss for the year amounted to RMB (190,714) thousand, compared to a total comprehensive income of RMB 834,134 thousand in the previous year[7] - The company reported a loss before tax of RMB 314,571,000 for the year ended December 31, 2023, compared to a profit of RMB 755,731,000 for the year ended December 31, 2022, indicating a significant decline in performance[40] - The company reported a net loss for the year of RMB (196,212) thousand, compared to a profit of RMB 811,355 thousand in the previous year[20] - The adjusted annual profit for 2023 was approximately RMB 4.4 million, reflecting the group's resilience in a challenging market environment[86] - The company reported an adjusted annual profit of RMB 4.44 million for the year ended December 31, 2023, compared to RMB 512.56 million in 2022, reflecting a significant decline[87] Production and Sales - Steel production volume increased by 8.9% to 7.73 million tons, while trading volume decreased by 33.3% to 200,000 tons[2] - The total sales volume for 2023 was 7.733 million tons, an increase of approximately 8.9% compared to 2022[76] - The company sold approximately 3.6 million tons of self-produced H-beam products in 2023, maintaining its leadership position in the Chinese H-beam market since 2009[72] - Sales of H-beam products amounted to RMB 12,946,577 thousand, down from RMB 15,409,767 thousand in the previous year, reflecting a decrease of about 16.0%[18] - The steel segment generated revenue of RMB 46,013,691 thousand, while the real estate segment contributed RMB 246,047 thousand, resulting in a total operating loss of RMB 112,477 thousand for the year[20] Assets and Liabilities - The total assets increased by 4.2% to RMB 50.03 billion, while the debt-to-capital ratio rose to 63.0% from 56.7%[3] - Current assets increased to RMB 27,948,717 thousand from RMB 25,312,357 thousand year-on-year, indicating a growth of approximately 10%[8] - The company's cash and cash equivalents rose to RMB 3,618,030 thousand, up from RMB 2,124,697 thousand, reflecting a significant increase of 70%[8] - Total liabilities increased to RMB 25,052,387 thousand from RMB 22,738,943 thousand, representing an increase of approximately 10.2%[9] - The company's long-term borrowings rose to RMB 13,089,962 thousand from RMB 12,116,624 thousand, indicating an increase of about 8%[9] - The equity attributable to the company's equity holders decreased to RMB 24,977,785 thousand from RMB 25,284,647 thousand year-on-year[9] Dividends and Shareholder Returns - The company declared a special dividend of HKD 0.05 per share, an increase of 66.7% from the previous year[3] - The company proposed a special dividend of approximately RMB 168,815,000 for the year ended December 31, 2023, which is pending approval at the upcoming annual general meeting[44] - The company plans to distribute a special dividend of HKD 0.05 per ordinary share for the year 2023, celebrating its 20th anniversary of listing[72] Research and Development - Research and development expenses increased slightly to RMB 353.9 million, compared to RMB 345.9 million in the previous year[5] - The company incurred research and development expenses of RMB 51,516,000 for the year ended December 31, 2023, down from RMB 67,830,000 in 2022, reflecting a reduction in R&D investment[40] Market Conditions and Future Outlook - The steel industry in China is expected to maintain a dynamic balance in supply and demand, with fixed asset investment remaining stable and economic benefits significantly improving in 2023[71] - The company plans to continue focusing on the steel manufacturing and trading business while evaluating opportunities for market expansion and potential acquisitions[16] - The company aims to enhance operational efficiency and sustainability through cost reduction, marketing promotion, and increased investment in environmental protection and product R&D[71] - The steel industry is expected to face uncertainties in 2024, but the group anticipates a gradual improvement in the overall development trend[82] Financial Costs and Taxation - The total financial costs decreased to RMB (425,060) thousand in 2023 from RMB (559,673) thousand in 2022, showing a reduction of 24%[34] - The current income tax expense for the year was RMB 70,480 thousand, down from RMB 178,141 thousand in 2022, representing a decrease of 60.5%[35] - The effective tax rate for the group was calculated at 33.29% for the year ended December 31, 2023, compared to 18.63% in 2022, reflecting changes in tax regulations and profitability[39] Impairments and Provisions - The impairment provision for property, plant, and equipment was RMB (249,842) thousand in 2023, compared to RMB (166,893) thousand in 2022, reflecting a significant increase in impairment[33] - The group has made a provision of RMB 201 million for impairment of receivables related to properties under development and for sale in China's second-tier and lower cities due to ongoing financial pressures in the real estate market[85] Investment Strategy - The company is focusing on investments in emerging industries with high growth potential, such as new generation information technology and high-end equipment manufacturing[150] - The investment strategy includes a macro-hedging approach based on comprehensive economic analysis and evaluation of supply and demand conditions for various commodities[149] - The company aims to maximize expected returns while controlling risks through quantitative investment strategies, including statistical arbitrage and hedging[151]
中国东方集团(00581) - 2023 - 年度业绩