Baosteel(SH:600019)2024-04-26 07:41Dividend Distribution - The company plans to distribute a cash dividend of CNY 0.20 per share for the second half of 2023, totaling approximately CNY 4.34 billion, which represents 58.72% of the net profit attributable to shareholders for that period[3]. - The total expected cash dividend for 2023 is CNY 0.31 per share, amounting to CNY 6.78 billion, accounting for 56.77% of the net profit attributable to shareholders[3]. - The company emphasizes the importance of maintaining a cash dividend policy of at least 50% of the audited net profit attributable to shareholders each year[3]. - The company has committed to a mid-term dividend distribution policy aligned with the release of interim reports, ensuring a minimum of 50% of the interim net profit for distribution[3]. - The cash dividend policy is in compliance with the company's articles of association and has been approved by the shareholders' meeting[159]. - The proposed cash dividend for the second half of 2023 is CNY 0.20 per share, with an expected total distribution of CNY 4,340,392,218.40, representing 58.72% of the net profit attributable to shareholders for the second half[155]. - The total expected cash dividend for the entire year 2023 is CNY 6,780,892,478.29, which accounts for 56.77% of the net profit attributable to shareholders[155]. Financial Performance - In 2023, the company's operating revenue was CNY 344.5 billion, a decrease of 6.3% compared to CNY 367.8 billion in 2022[17]. - The net profit attributable to shareholders was CNY 11.944 billion, down 2.0% from CNY 12.187 billion in the previous year[17]. - The net cash flow from operating activities decreased significantly by 43.4% to CNY 25.302 billion from CNY 44.719 billion in 2022[17]. - The total assets at the end of 2023 were CNY 376.051 billion, a decline of 5.6% from CNY 398.249 billion in 2022[17]. - The company's net assets attributable to shareholders increased by 2.9% to CNY 200.325 billion compared to CNY 194.623 billion in 2022[17]. - The basic earnings per share for 2023 was CNY 0.54, a decrease of 1.8% from CNY 0.55 in 2022[17]. - The company reported a total of CNY 1.491 billion in non-recurring gains and losses for 2023, compared to CNY 1.583 billion in 2022[21]. - The weighted average return on net assets decreased to 6.01% in 2023 from 6.33% in 2022, indicating a decline in profitability[17]. Market and Product Development - The company plans to continue focusing on market expansion and new product development in the upcoming fiscal year[17]. - The company is actively developing high-end steel products, including new generation automotive high-strength steel and oriented silicon steel, which are at the international advanced level[31]. - The company achieved a historical high in export orders with a total profit of 15.09 billion yuan, outperforming the industry average by 12.8 percentage points[32]. - The "1+1+N" product sales reached 27.92 million tons, a year-on-year increase of 10%[32]. - The company plans to continue expanding its market presence and optimizing its export structure, particularly in high-value products[47]. - The company aims to increase its '1+1+N' product sales to 30 million tons in 2024, with an export sales ratio of over 10%[103]. Challenges and Risks - The company faces challenges in 2024 due to a slowdown in demand, pressure on steel exports, and high volatility in upstream raw material prices[5]. - The company emphasizes the importance of risk management to address potential challenges such as macroeconomic policy changes and fluctuations in raw material prices[105]. - The company has highlighted the need for careful evaluation of acquisition risks and thorough due diligence before proceeding with any mergers[146]. Environmental and Sustainability Initiatives - The company has committed to sustainable development, responding to environmental regulations aimed at reducing carbon emissions and promoting green practices in the steel industry[29]. - The company achieved a 21% reduction in carbon emissions and was rated "Excellent" in the China Listed Companies Carbon Neutrality Leadership Ranking[38]. - The company completed ultra-low emission modifications across all four bases and received the "Green Factory" title from the Ministry of Industry and Information Technology[33]. - The company has implemented carbon reduction measures, including the use of clean energy and low-carbon metallurgy[183]. - The company has established a complete management system for environmental protection, focusing on both results and processes in pollution control[175]. Governance and Management - The company has a board of directors consisting of 11 members, with 5 independent directors, ensuring a diverse and professional governance structure[106]. - The company has strengthened its internal control and compliance management, revising its articles of association and risk management policies[106]. - The company has established a comprehensive risk management framework for its derivative investments, focusing on market, liquidity, credit, operational, and legal risks[90]. - The company has a commitment to corporate governance, with several independent directors serving on various boards, ensuring compliance and oversight[128]. Research and Development - The company has initiated research and development in low-carbon metallurgy technology to meet environmental and carbon neutrality goals[5]. - The R&D investment rate was 5.68%, with over 1,300 patent applications and 37% of new products being unique[36]. - Research and development expenses increased by 7.9% to RMB 3,419 million, reflecting the company's commitment to enhancing core technological capabilities[43]. - The company is investing 2 billion RMB in research and development for low-carbon steel production technologies over the next three years[124]. Strategic Acquisitions and Investments - The company completed the acquisition of Shanghai Baoxin Smart Mining Information Technology Co., Ltd. with a registered capital of CNY 150 million, holding a 55% stake[49]. - The company has completed equity investment projects totaling RMB 13.2 billion in 2023, an increase of RMB 10.58 billion compared to the same period last year[80]. - The company is considering strategic acquisitions to enhance its product portfolio, with a budget of 3 billion RMB for potential deals[122]. Employee and Management Changes - The company has a total of 43,126 employees, with 11,445 in the parent company and 31,681 in major subsidiaries[151]. - The company appointed new executives, including a General Manager for the Steel Manufacturing Development Department in May 2023[126]. - The company experienced changes in its board, with several appointments and resignations in 2023[133]. Community Engagement and Social Responsibility - The company donated 70.7 million yuan for rural revitalization projects in Yunnan, supporting 38 projects and integrating cultural and industrial revitalization efforts[188]. - The company provided assistance to 173,854 individuals through 45 poverty alleviation projects, including 20 focused on industrial development[187]. - The company donated 2.83 million yuan to support local agricultural products in Yunnan, purchasing and selling 22.83 million yuan worth of agricultural products throughout the year[188].