Financial Performance - The company's operating revenue for 2023 was CNY 98.94 billion, a decrease of 3.15% compared to CNY 102.15 billion in 2022 [16]. - The net profit attributable to shareholders of the parent company for 2023 was a loss of CNY 1.33 billion, compared to a loss of CNY 857.62 million in 2022 [16]. - The net cash flow from operating activities decreased by 70.01% to CNY 1.99 billion in 2023 from CNY 6.64 billion in 2022 [16]. - The total assets at the end of 2023 were CNY 84.55 billion, down 12.74% from CNY 96.89 billion at the end of 2022 [17]. - The basic earnings per share for 2023 was -CNY 0.1724, compared to -CNY 0.1150 in 2022 [18]. - The company's net profit for the first quarter of 2023 was a loss of CNY 509 million, while the second quarter loss was CNY 1.73 billion [19]. - The net assets attributable to shareholders of the listed company decreased by 4.90% to CNY 27.77 billion at the end of 2023 from CNY 29.20 billion at the end of 2022 [17]. - The weighted average return on net assets for 2023 was -4.67%, a decrease of 1.90 percentage points from -2.77% in 2022 [18]. - The group’s operating revenue for the reporting period was RMB 98,938 million, a decrease of 3.15% year-on-year, while the net loss attributable to shareholders was RMB 1,327 million, an increase in loss of 54.64% year-on-year [35]. Audit and Compliance - The company has received a standard unqualified audit report from KPMG, ensuring the accuracy and completeness of the financial statements [7]. - The internal control system was confirmed to be effective, ensuring compliance with internal control standards and risk management practices [58]. - The company has maintained compliance with relevant laws and regulations that significantly impact its operations during the reporting period [98]. - The company’s governance practices are in compliance with relevant laws and regulations, with no significant discrepancies noted [124]. - The company appointed KPMG Huazhen as the auditor for the fiscal year 2023, with a total remuneration of RMB 3.08 million, including RMB 340,000 for internal control audit fees [117]. Shareholder Information - The company reported a profit distribution plan for 2023, stating that no dividends will be distributed and no capital reserve will be converted into share capital [7]. - As of December 31, 2023, the company had 147,885 A-share shareholders holding a total of 6,014,007,986 shares, and 927 H-share shareholders holding 1,732,930,000 shares [122]. - The market capitalization of the company as of December 31, 2023, was approximately RMB 18.29 billion, with A-shares closing at RMB 2.72 and H-shares at HKD 1.23 [123]. - The public holding ratio of H-shares was 79.3%, meeting the requirements of the Hong Kong Stock Exchange [122]. - The company held 9 telephonic or video meetings with investors during the reporting period, engaging with nearly 50 institutions and over 200 participants [121]. Risk Management - The company is facing potential risks in its future development, which are detailed in the management discussion and analysis section of the report [7]. - The company has established a comprehensive risk management framework for its futures trading, including strict trading management and evaluation systems [77]. - The company aims to optimize its foreign exchange asset-liability structure and control foreign exchange risks to reduce financial costs [78]. - The company is focusing on risk prevention in key areas, including energy control and environmental protection, to mitigate potential operational risks [94]. - The company conducts quarterly assessments of risks that may impact overall business objectives and reports findings to the board [115]. Environmental and Social Responsibility - The company invested approximately 3.383 billion yuan in environmental protection during the reporting period [163]. - The company and its subsidiaries are classified as key pollutant discharge units, adhering to national emission standards for the steel industry [164]. - The total emissions of particulate matter from Maanshan Iron & Steel Co., Ltd. were 6,958 tons, including 5,176 tons from organized emissions and 1,781 tons from unorganized emissions [167]. - The company generated 1,124.38 thousand tons of solid waste, with 315.66 thousand tons disposed of and 808.72 thousand tons compliant [168]. - The company invested CNY 2.036 million in social responsibility projects, benefiting over 20,000 people through targeted assistance and charitable donations [178]. Corporate Governance - The board of directors consists of seven members, with four independent non-executive directors, accounting for 57% of the board [100]. - The board has established four committees: Strategy and Sustainable Development, Audit and Compliance Management, Nomination, and Remuneration, each with specific responsibilities [104]. - The company has a formal and transparent process for the nomination and election of directors, with a three-year term for board members [109]. - The company emphasizes continuous professional development for its board members, with training sessions covering regulatory updates and compliance requirements [112]. - The company has a performance evaluation process for directors and senior management, which is reviewed by the remuneration committee [136]. Operational Efficiency - The company achieved record production levels, with annual output of 9.73 million tons in steel and 5.42 million tons in cold rolling, marking historical highs [23]. - The company has enhanced its competitive edge by integrating into the China Baowu ecosystem, optimizing operational processes, and improving resource allocation through deep collaboration across various functions [30]. - The company aims to strengthen cooperation with surrounding regions to expand its market presence and achieve sustainable development [31]. - The company is implementing a new operational responsibility system to enhance performance accountability and optimize resource allocation [86]. - The company plans to optimize its production efficiency, aiming for an average steel output of over 1,000 tons per employee [89]. Research and Development - The company holds 2,283 effective patents, including 1,292 invention patents and 991 utility model patents, indicating significant achievements in technological innovation [34]. - The company's research and development expenses increased by 5.46% to RMB 1,231 million, reflecting ongoing investment in innovation [36]. - The company has increased R&D investment to overcome technical bottlenecks and improve product quality, thereby enhancing its market competitiveness [30]. - The company aims to enhance its core competitiveness through technological innovation, focusing on key industries such as transportation, marine engineering, and energy [85]. - The company is increasing its R&D investment to strengthen its technological innovation capabilities and support high-quality development [89]. Market and Product Development - New product development increased by 25% year-on-year, with seven new products launched domestically, including successful development of C-shaped and hat-shaped steel [23]. - The average sales profit margin for the steel industry was 1.32%, a decrease of 0.17 percentage points year-on-year, significantly lower than the national industrial average by 4.44 percentage points [28]. - The company has developed a unique product structure with four main categories, allowing for flexible resource allocation and timely adjustments to product strategies based on market demand [32]. - The company is committed to high-end manufacturing, targeting the transformation of its product lines towards functional and industrial materials [88]. - The company is focusing on green and low-carbon product development, including the creation of a carbon data management platform and low-carbon product certification [88].
马鞍山钢铁股份(00323) - 2023 - 年度财报