FSSS(SH:600399)2024-01-16 07:38Group 1: Investor Relations Activity - The investor relations activity was categorized as a specific object survey, with participation from major financial institutions including Industrial Securities, ICBC Credit Suisse, Guotai Junan Securities, and China Life Asset Management [1]. - The meetings took place on January 11 and January 12, 2024, in the company conference room [1]. Group 2: Key Questions and Responses - Investors inquired about the conditions under which the company would refuse orders, to which the CFO responded that the company would accept orders, provided that each order undergoes a cost assessment, and orders below marginal profit would not be accepted [1]. - Questions were raised regarding changes in management mechanisms after the transfer of equity agreements to Shagang, with the CFO confirming that the management mechanism remained unchanged and that performance assessment would still utilize the operating contracting method [1]. Group 3: Project Updates - The company reported that key projects disclosed earlier, including the homogenization project, industrialization phase one project, and the 20 electric arc furnace project, have all commenced production as of December 2023 [1]. - The second phase of the special steel capacity enhancement project, involving six vacuum self-consumption furnaces, has entered the manufacturing cycle [1]. Group 4: Capacity Utilization and Cost Impact - The company emphasized that the utilization rate of special steel equipment is maximized while ensuring regular maintenance and repairs [1]. - The CFO highlighted that in 2022, the rise in nickel prices significantly impacted profits, despite price adjustments for nickel-containing products, which did not fully offset the cost increases [2]. - Energy costs, particularly for electricity and natural gas, have been a major concern, with prices rising from 2021 to 2022. However, in 2023, the average procurement price for electricity remained stable, while natural gas prices saw a slight increase, although internal cost-cutting measures have led to gradual improvements in energy costs [2].