Ge Long Hui A P P·2025-03-31 04:14Core Viewpoint - Ansteel Co., Ltd. reported a significant net loss of 7.122 billion yuan for 2024, marking a year-on-year decline of 118.8%, alongside a 9.06% drop in operating revenue, indicating severe challenges in the steel industry [1][3][4]. Financial Performance - The company's operating revenue for 2024 was 105.101 billion yuan, down 9.06% year-on-year [3]. - The net profit attributable to shareholders was a loss of 7.122 billion yuan, a decline of 118.8% compared to the previous year [3][4]. - The net cash flow from operating activities was a loss of 787 million yuan, representing a 148.08% decrease year-on-year, highlighting worsening cash flow conditions [3][4]. Product Margins - The gross margin for hot-rolled thin plates was -5.88%, down 4.54 percentage points year-on-year [3]. - The gross margin for cold-rolled thin plates was -2.07%, down 3.66 percentage points year-on-year [3]. - The gross margin for medium and thick plates was -1.52%, down 1.65 percentage points year-on-year [3]. Cost Management - The company achieved a significant reduction in sales expenses to 560 million yuan and management expenses to 1.339 billion yuan compared to 2023 [4]. - However, financial expenses increased to 266 million yuan, up 1.92% year-on-year [4]. Industry Context - Ansteel attributed its losses to the challenging conditions in the steel industry, with weak downstream demand and a low market sentiment leading to reduced profit margins [4]. - The company has faced significant performance fluctuations over the past three years, with a notable decline in 2022 and 2023 due to various economic pressures [5]. Strategic Actions - On March 28, 2024, Ansteel announced a capital increase agreement with Ansteel Engineering and Ansteel Energy to boost the registered capital of Ansteel Energy for a project related to LNG production from coke oven gas [6]. - The total capital increase for this project is 100 million yuan, aimed at enhancing the company's energy sector development and investment returns [6]. - Ansteel's subsidiary, Green Gold, entered into a joint venture agreement with Benxi Steel to establish a company focused on recycling and processing waste materials, which is expected to strengthen market competitiveness and profitability [6].