[年报]首钢股份(000959):2021年年度报告（英文版）
原标题:首钢股份:2021年年度报告（英文版） 2021 Annual Report 27 April 2022 Section I. Important notice, Content, Definitions The board of directors (the “Board”), the supervisory committee, all directors, supervisors and senior executives of the Company warrant that there are no false representations, misleading statements or material omissions in this annual report; and are jointly and individually responsible for the truthfulness, accuracy and completeness of the information contained in this annual report. Mr. Zhao Minge, representative of the Company, Mr. Liu Jianhui, general manager, Mr. Li Baizheng, person overseeing the accounting operations, and Ms. Gong Juanjuan, head of Accounting Department, made representations in respect of the truthfulness, accuracy and completeness of the financial report contained in the annual report. All directors have attended the board meeting to review of and deliberate on this report. Forward-looking statements contained in this annual report do not constitute any substantive commitments to investors by the Company. Investors should be aware of the relevant investment risks. Certain risks that may exist have been elaborated by the Company in this report. Please refer to Discussion and Analysis of Business Operations for details. Notes to the profit distribution plan or the plan for converting capital reserve into share capital during the report period: On 18 March 2022, the Company has received the“Approval for Beijing Shougang Co., Ltd. to Issue Shares to Shougang Group Co., Ltd. to Purchase Assets and Raise Supporting Funds” (zjxk [2022] No. 553) from China Securities Regulatory Commission. The Company is proceeding with this transaction in accordance with the regulations of Measures for the Administration of Securities Issuance and Underwriting issued by the China Securities Regulatory Commission. The Company neither distributes cash nor convert capital reserve into share capital this year. The Company intends to review and arrange relatedprofit distribution plan in accordance with the provisions of relevant laws, regulations, rules, normative documents and Articles of Association as soon as this transaction is completed. This report is prepared based on Chinese text and is prepared in both Chinese and English versions. In the event of any discrepancy between Chinese and English versions, please subject to the Chinese text. CONTENTS SECTION I. IMPORTANT NOTICE, CONTENT, DEFINITIONS ........................................................................... 2 SECTION II. COMPANY PROFILE AND MAJOR FINANCIAL INDICATORS ......................................................... 6 SECTION III. MANAGEMENT DISCUSSION AND ANALYSIS ......................................................................... 10 SECTION IV. CORPORATE GOVERNANCE .................................................................................................. 32 SECTION V. ENVIRONMENT AND SOCIAL RESPONSIBILITY ....................................................................... 54 SECTION VI. SIGNIFICANT EVENTS ......................................................................................................... 63 SECTION VII. MOVEMENTS IN SHARE CAPITAL AND SHAREHOLDERS ........................................................ 71 SECTION VIII. PREFERRED SHARES ........................................................................................................ 80 SECTION IX. BONDS RELATED INFORMATION .......................................................................................... 81 SECTION X. FINANCIAL REPORT ............................................................................................................. 85 File directory for reference 1.Accounting statements with signatures and seals of Chairman, general manager, chief accountant and person in charge of accounting institution. 2. Original audit report with seals of accounting firm and signature and seals of CPA. 3. All the original documents and announcements publicly disclosed in newspapers designated by China Securities Regulatory Commission during the reporting period. 4. The Articles of Association of the Company, etc. INTERPRETATION
I. Company information
Accounting firm engaged by the company
√ Applicable □ Not applicable
Whether the Company has retroactive adjustment or re-statement on previous accounting data or not □ YES √ NO Reasons for retroactive adjustment or restatement Business combination under common control
negative, and the audit profit of the latest year presents that the Company’s ability of continuing operations is uncertain. □ YES √ NO
indicators disclosed in the Company’s quarterly report and semi-annual report □ YES √ NO IX. Items and amounts of non-recurring profit and loss √ Applicable □ Not applicable Unit: RMB Yuan
The Company has no other profit and loss items that meet the definition of non recurring profit and loss. Explanation of reclassifying the non-recurring profit and loss items listed in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/Loss Items as recurring items: □ Applicable √ Not applicable During the reporting period, no non-recurring profit and loss item listed in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/Loss Items is reclassied as recurring item. Section III. Management Discussion and Analysis I. The industry situation of the Company during the reporting period In 2021, the development of electrical steel industry is healthy and stable, the output of oriented and non-oriented electrical steel achieves double growth, including in which, the output of orientedelectrical steel is about 1.83 million and the output of non-oriented electrical steel is about 11.46 million, which indicates that China is the world's first producer of electrical steel. Significant growth of high-grade materials such as energy-saving transformers and driving motors of new energy automotive is achieved. High-end electrical steel products provide strong support for the national "dual carbon" policy landing, manufacturing upgrade and power industry development. In 2021, the overall performance of the steel industry in the first three quarters was in good situation and a dynamic balance between supply and demand was achieved. Through tapping potential for efficiency and overcoming the impact of high crude fuel prices, the industry benefits created the historic best level.Entering the fourth quarter, affected by the shrinking demand, steel prices generally fell and the reduction rate is greater than the decline of raw fuel. During the reporting period, major adjustments have taken place in national industrial policies. First, the control of production capacity and output is implemented, steel export tax rebate policy is cancelled, and carbon peak, carbon neutral target are launched; Second, ultra-low emission transformation and strict assessment of double control of energy consumption put an impact on the guarantee of production factors; Third, the domestic and foreign markets fluctuate greatly, the commodity prices rise and fall sharply, and the market environment is complicated; Fourth, the industrial efficiency improved significantly and the structure of assets and liabilities was further optimized. Affected by the capacity and output policies, the cumulative production of iron in China is 869 million tons, decreases of 43% year on year; the cumulative production of crude steel is 1.033 billion tons, decreases of 3.0% year on year; the cumulative production of steel 1.337 billion tons, increases of 0.6% year-on-year. II.Main business of the Company during the reporting period The main business of the Company is the production and sales of steel products and metal soft magnetic materials (electrical steel) 1. Zhixin Co. Electric steel is an indispensable electromagnetic material in the fields of power, electronics and military industry. It is the core soft magnetic functional material applied in the power industry and serves the generation, transmission and use of electric energy.Electric steel is divided into oriented electric steel and non-oriented electric steel. Oriented electric steel is mainly used in the field of ultra-high voltage, ultra-high voltage and high energy efficiency distribution transformers. It is used to manufacture transformer cores.Non-oriented electric steel is mainly used in new energy vehicles, household appliances, industrial motors, small and medium-sized motors and other industries or fields, used to manufacture motors, frequency conversion compressors and other products. Zhixin Co. is a research and development, manufacturing and sales base of metallic soft magnetic materials (electric steel), and has become the world's leading manufacturer and service provider of electric steel. Products include oriented and non-oriented electrical steel. The orientedelectric steel includs high magnetic induction, magnetic domain refinement, low noise, low excitation, no underlying, intermediate frequency six products. Independent researching and developing of low temperature slab reheating technics producing high magnetic induction orientation technology of electric steel and becoming the world's fourth all cryogenic technology industrialization enterprises. Non-oriented electric steel includes four categories of products including new energy vehicles, stress relief annealing, high efficiency and general, with stable batch production capacity of all grades. 2.Jingtang Co. Jingtang Co. is a large steel base with advanced international level designed and constructed in full accordance with the concept of circular economy. It has the obvious advantages of being near the sea and near the harbor, large equipments, high production efficiency and low cost. Iron and steel products of Jingtang Co. include hot and cold plates. The hot plates mainly contain hot-rolled products, i.e., hot-rolled pickling sheet, weather-resistant steel, automobile structure steel, high-performance construction steel, pipeline steel, etc.; and also contain medium and thick plates products, such as bridge steel,energy steel, pipeline steel, etc. The cold plates mainly contain automobile sheet, tin sheet, cold-rolled special-use plate, color-coated sheet, etc. four main products series. 3. Qianshun production line Qianshun production line is an important high-end plate production base in China, with world-class equipment and industry-leading clean steel manufacturing technology, and has full range supply capacity of high-end auto plate and high-end household appliance board. Products of Qianshun production line include hot and cold plates. The hot plates mainly contain hot-rolled pickle sheet, weather-resistant steel, automobile structure steel, high-strengthconstruction machinery steel, pipeline steel, etc. The cold plates mainly contain automobile sheet, cold-rolled special-use plate, etc. III.Analysis of core competitiveness 1. Market-leading technology The Company, Jingtang Co., Zhixin Co., Cold-R Co. are high-tech enterprises, the R&D investment of RMB 5.3 billion in 2021 accounts for 3.97% of the operating revenue. Technological innovation is guided by benefit and demand, making technical research projects, expert workstations and platforms for external cooperation rely on the research and development system of "one institute and multiple centers". The cultivation of new products, new technologies and new technological processes is accelerating. New Product development: Six new products represented by CR290Y490T-DP-GI dual-phase high-strength outer panel for automobiles has launched in China; 29 high-end materials represented by DP500 of automobile exterior panel have been replaced by domestic products; High grade non-oriented electric steel represented by high strength and low iron loss product 15SW1100H has completed 12 new product development projects. Key technological breakthroughs: Nine complete sets of technologies have been completed, including "technology for smooth stability and longevity of blast furnaces", the No. 1 blast furnace of Jingtang Co. have reached the first place in China by using the coefficient and coke ratio, "Large proportion pelletizing iron making technology" is in the leading place in China, the pelletizing ore ratio is up to 60%, and the carbon reduction effect is obvious. Patents：The Company has obtained 450 patents, including 182 invention patents and 268 utility model patents.75 projects won the "National Invention Exhibition Invention Entrepreneurship Award and Project Award". Standards：The Company has set up standard industry benchmark, presided over the formulation of 24 standards at all levels, including "Evaluation Standard of Green Production Management in Iron and Steel Industry" and "Technical Specifications for High Precision Filtration of Converter Flue Gas Emission", and participated in the formulation and revision of 44 standards at all levels. Science and technology awards：The project of "Carbon dioxide green and Clean steelmaking Technology and Application" and "Low-carbon clean and efficient iron-making process and Technology integration" won the special prize and the first prize of metallurgical science and technology respectively, and the second prize and the third prize of metallurgical Science and technology were respectively awarded for "High grade non-oriented silicon Steel ultra-low Identical Plate Difference Control Technology" and "Ultra-thin tinplate Efficient green Manufacturing Technology and Application". 2. High-end products The Company continues to optimize the product structure, production line structure and customer structure, so as to achieve both product quality and efficiency improvement, to achieve three development strategies, including adhere to the continuous leadership of electric steel, automotive board to do more refined and stronger, breakthrough into the tin plate high-end market. During the reporting period, the total output of the three strategic products was 5.68 million tons, accounting for 26% of steel output and contributes about 40% to profit.The total output of eight key products of the Company (cold-rolled special steel, hot-rolled pickling plate, weather-resistant steel, energy steel, automotive structural steel, high-strength construction machinery steel, pipeline steel, bridge steel) was 9.47 million tons. The total output of key and strategic products accounts for 68% of steel output and contributes about 85% to profit. Production 1.5 million tons of electric steel, and the dimensional accuracy and composition control have reached the world-class level. With the promotion of the national "dual carbon" strategy, the electrification level of the whole society has been further improved, the demand for high-end electric steel products continues to grow, and the company's high-end electric steel products account for 48%. In terms of high magnetic orientation electric steel, the output of 0.20mm and below ultra-thin high magnetic orientation electric steel products reached 54,000 tons, increasing 74% year-on-year, and the market share reached 60%, achieving the first domestic sales volume for four consecutive years. Manufacturing 983 new standard level Ⅰ energy efficiency transformers; The Baihetan-Jiangsu ±800kV UHVDC transmission project has 4 rheological converters, realizing full coverage of AC and DC transformers.Continuous optimization of non oriented electrical steel product structure, the output of high-grade non-oriented electric steel products reached 547,000 tons, increasing 28% year on year, among which, the output of high-grade non-oriented electric steel products for new energy vehicles increased 231% year on year; 5 of the top 10 global sales companies of new energy vehicles are stably supplied, and nine of the top 10 domestic sales companies are stably supplied. Production 3.55 million tons of automobile plate, increasing 5% year on year, and the products cover all types of automobiles. The product structure was further optimized, and the output of galvanized sheet, high-strength sheet, outer sheet increases by 18%, 20% and 14% year-on-year respectively. Zinc aluminum magnesium coating products were the first to successfully replace electro galvanized products, which catching up with competitors and the annual order quantity exceeded 120,000 tons, with a year-on-year growth of 93%. The customer structure was further upgraded. OEM orders accounts for 43% and the share of core OEM is stable and rising. The supply of Japanese cars increased by 58% year on year; Joint venture car brand customer supply increased by 3% year on year;Shougang BMW Brilliance Alliance Innovation Studio has been jointly established by the Company to achieve cross-professional, cross-field and cross-enterprise in-depth cooperation. Production 630,000 tons of tinned (chrome) plate, increasing 8% year on year, capacity utilization rate reached 120%. Tinplate deep drawing cupping DI material to achieve the widest specification coverage (width up to 1202mm), exporting to the North American market in batches; Developing 0.19mmt5 Red Bull iron products with customers, and the replacement of 0.2mmt4 product was realized for the first time; The 0.12mm "Cicanyi steel" was first used to make postcards and became the cultural and creative product of the Beijing Winter Olympics. The market share of high-extension easy-open lid and high-surface milk powder cans is in leading place, and the output of easy-open lid, iron milk powder and two-can products has increased by more than 50% year on year, and the advantageous products continue to increase. 3.Safety supply chain The Company is the only platform for Shougang Group, the controlling shareholder, to develop and integrate the iron and steel and upstream iron ore resource industry in China. Shougang Group owns Shuichang Iron Mine and Xingshan Iron Mine with an annual production capacity of 4 million tons of iron powderin domestic and owns Peruvian Iron Mine with an annual production capacity of 20 million tons of iron powder overseas.Macheng Iron Mine under construction has high reserves, low cost, environmentally friendly and efficient transportation, with an annual production capacity of 7 million tons of iron powder, which is expected to be put into operation by the end of 2023, and the iron ore resource guarantee capacity of the Company will be further improved.Coke resources supply is guaranteed because the coke of Qiangang Co. is mainly supplied by Qian'an Sinochem Coal Chemical Industrial Co., Ltd., a joint venture of the Company and Kailuan Energy Chemical Co., Ltd, and the coke of Jingtang Co. is supplied by Tangshan Shougang Jingtang Xishan Coking Co., Ltd., a joint venture ofJingtang Co. and Shanxi Xishan Coal and Electricity Power Co., Ltd.The Company has signed long-term agreements with large state-owned coal groups, among which Shougang Fushan Resources Group Co. Ltd., a joint venture of Shougang Group, provides part of high-quality coking coal resources to the Company that ensuring sufficient coal supply. 4. Green and low-carbon According to the policy requirements, Qiangang Co. and Jingtang Co. take independent emission reduction measures to continuly maintaine the "A level" enterprises under Hebei Province environmental performance evaluation.Through the sharing of ultra-low emission advanced technology and management experience, Qiangang Co. has served more than 30 steel enterprises.CCTV news Broadcast, Xinhua News Agency and Phoenix TV praised Shougang's green and low-carbon transformation development respectively. Through the establishment of green manufacturing committee, the Company carries out energy-saving and carbon reduction technology research and establishes LCA data acquisition system, and provides product life cycle evaluation reports according to customer requirements.Jingtang Co. is the first demonstration iron and steel enterprise in China that applies carbon dioxide to converter top and bottom double blowing system. Meanwhile, its large proportion pellet iron-making technology replaces sinter with pellet, which realizes high efficiency, low energy consumption, low emissions, carbon reduction and environmental protection advantages. The "burning - heat - electricity - water - salt" five-effect integrated high efficiency recycling system of Jingtang Co. won the first prize of China Energy Conservation Association energy-saving and Emission Reduction Science and Technology progress, and also, Jingtang Co. won a number of awards such as green and low-carbon excellent brand enterprise, green manufacturing standardization support unit, green development benchmark enterprise in the steel industry. The "cold rolling high strength steel plate and strip for automobile" of Cold-R Co. has been recognized as national "green design product" by the Ministry of Industry and Information Technology. 5. "Technology + Service" marketing The Company takes customers as the center to deepen the marketing strategy of "technology + service" and create service to enhance the brand value ofShougang.By improving the three-level service system and improving service efficiency, the Company meets customers' requirements for quality, delivery time, research and development, and service. The Company has improved EVI service capacity year by year, and the EVI supply increased by 26.1% year on year. By establishing product advantage analysis model, strengthening product research and development, and improving manufacturing capacity, the Company has promoted key products to maintain competitive advantages and expanded the leading edge of strategic products. The Company has established a centralized, unified, fast response and efficient marketing management network with marketing center as the core, 5 regional steel trading subsidiaries and 11 processing centers, to further consolidate and enhance the channel structure of the combination of leading enterprises in the industrial chain and high-quality small and medium-sized customers.In order to stabilize the market-share and improve the comparative advantage of industrial chain cooperation, enhance the depth of cooperation and enhance the viscosity of cooperation, the company carries out all-round, multi-level and high-quality cooperation with key customers in the industry. 6.Talent thriving enterprise The Company has further promoted the strategy of strengthening enterprises with talents and built a multi-level training system for all staff.Iron and steel products of Qianshun production line and Zhixin Co. has established the career development system of the whole life cycle of high potential talents, and held deep Blue special training camp and Blue green training camp to strengthen the ability of talents. Jingtang Co. has established the "four horizontal and three vertical" training system for all staff, and implemented the "Blue Project" to build a platform for cadres to improve quality and talent growth. In 2021, two employees of the Company won the "National May 1 Labor Medal", one won the "Capital Labor Certificate", one won the second "Beijing Grand Craftsman", and one won the "Nominated person of Beijing Great craftsman". The Company perfects talent promotion evaluation mechanism, smoothes talent career development path.The Company attaches great importance to performance-oriented and result-oriented, refining the performance evaluation mechanism for vertical development of three talent teams of operation management, professional technology and skill operation, opening up the channel for horizontal flow of talents from different sequences, strengthening the training and development of high-level personnel, and steadily increasing the proportion of high-tech and high-skilled personnel. II. Analysis of principal business 1. Overview The Company has precisely implemented COVID-19 prevention and control measures to achieve the "3-zero" elimination target. Qiangang Co. and Jingtang Co. are stable and orderly in their production and operation under the condition of keeping the environmental performance evaluation of class A. The Company adheres to the innovation-driven and "manufacturing + service" strategy, seizes the market opportunity, efficiently coordinates the production line with the market, and continuously optimizes the product mix, thus continuously enhancing the profitability of the company. The Company takes benefit as the center, deepens the potential to explore the standard, increases the cost control, digs the impact of the material price rise of suppliers, and continuously improves the management efficiency. The Company through capital operation for enterprises to empower, optimize the quality of the company's assets, to achieve a substantial year-on-year growth in operating performance in 2021. The achievement of major accounting data and financial indicators: Operating revenue is RMB 134.034 billion (67.65% year on year increase); total profit is RMB 9.799 billion (252.76% year on year increase); net profit attributable to shareholders of the listed company is RMB 7.014 billion (year on year increase 292.64%); EPS is RMB 1.1291(234.35% year on year increase); total asset is RMB 147.212 billion; equity attributable to shareholders of the listed company is RMB 41.828 billion. The achievement of major products: (1) Metallic soft magnetic material (Electric steel) Zhixin Co.：Electric steel1.501 million tons，2.7% year on year decrease, of which the output of oriented electric steel is 0.193 million （未完）  |