[中报]首钢股份(000959):2023年半年度报告（英文版）
原标题:首钢股份:2023年半年度报告（英文版） 2023 Semi-Annual Report 10 August 2023 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 semi-annual report; and are jointly and individually responsible for the truthfulness, accuracy and completeness of the information contained in this semi-annual report. Mr. Zhao Minge, the representative of the Company, Mr. Liu Jianhui, the general manager of the Company, Mr. Li Baizheng, the person overseeing the accounting operations of the Company, 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 semi-annual report. All Directors have attended the Board meeting to consider this semi-annual report in person. Forward-looking statements contained in this semi-annual report do not constitute any substantive commitments to investors by the Company. Investors should be aware of the relevant investment risks. The Company plans not to distribute cash dividends, issue bonus shares, or convert public reserve funds into share capital. 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, the Chinese version shall prevail. CONTENTS SECTION I. IMPORTANT NOTICE, CONTENT, DEFINITIONS .......................................................................................................... 2 SECTION II. COMPANY PROFILE AND MAJOR FINANCIAL INDICATORS ........................................................................................ 6 SECTION III. MANAGEMENT DISCUSSION AND ANALYSIS .......................................................................................................... 8 SECTION IV. CORPORATE GOVERNANCE................................................................................................................................. 19 SECTION V. ENVIRONMENT AND SOCIAL RESPONSIBILITY ...................................................................................................... 20 SECTION VI. SIGNIFICANT EVENTS ........................................................................................................................................ 27 SECTION VII. MOVEMENTS IN SHARE CAPITAL AND SHAREHOLDERS ....................................................................................... 33 SECTION VIII. PREFERRED SHARES ....................................................................................................................................... 37 SECTION IX. BONDS ............................................................................................................................................................. 38 SECTION X. FINANCIAL REPORT ............................................................................................................................................ 40 File directory for reference 1.The semi-annual report with the signature and seal of Chairman of the Board. 2.Accounting statements with signatures and seals of general manager, chief accountant and person in charge of accounting institution. 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. 5.Other relevant information. INTERPRETATION
I. Company information
1. Way to contact the Company Whether registrations address, offices address and codes as well as website and email of the Company changed in reporting period or not □ Applicable √ Non applicable The registered address, office address and their postal codes, website address and email address of the Company did not change during the reporting period. The said information can be found in the 2022 Annual Report. 2. Did any change occur to information disclosure media and where this report is placed during the reporting period? □ Applicable √ Non applicable The newspapers designated by the Company for information disclosure, the website designated by CSRC for disclosing this report and the location where this report is placed did not change during the reporting period. The said information can be found in the 2022 Annual Report. 3. Other relevant information Did any change occur to other relevant information during the reporting period? □ Applicable √ Non applicable IV. Major accounting data and financial indicators Whether the Company has retroactive adjustment or re-statement on previous accounting data or not √ YES □ NO Reasons for retroactive adjustment or restatement
Standards and Chinese Accounting Standards □ Applicable √ Non applicable There is no difference between the net profit and net assets in the financial statements disclosed in accordance with International Financial Reporting Standards and Chinese Accounting Standards during the reporting period of the Company. 2. Difference of net profit and net assets in financial statements disclosed according to foreign accounting standards and Chinese Accounting Standards □ Applicable √ Non applicable There is no difference between the net profit and net assets in the financial statements disclosed in accordance with foreign accounting standards and Chinese Accounting Standards during the reporting period of the Company. VI. Items and amounts of non-recurring gain and loss √ Applicable □ Non applicable
□ Applicable √ Non applicable The Company has no specific situation of other profit and loss items that meet the definition of non-recurring gain and loss. Explanation of reclassifying the non-recurring gain 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 √ Non applicable The Company has 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. Main business of the Company during the reporting period 1.The industry situation of the Company during the reporting period In the first half of 2023, China's economy showed a recovery trend, but the market demand is still insufficient. The rapid recovery of steel industry production, raw material cost has declined, due to downstream demand recovery less than expected, steel market prices fell year-on-year, the decline is greater than the raw material end, the steel industry presents "high supply, low demand, low profitability" characteristics. Data from the National Bureau of Statistics show that in the first half of the year, ferrous metal smelting and rolling processing industry increased by 5.5% year-on-year, and the national iron, steel and material production was 452 million tons, 536 million tons and 677 million tons, up 2.7%, 1.3% and 4.4% respectively. Cisa data show that the average value of the China Steel Price Index (CSPI) was 113.21 points, down 15.4 per cent year-on-year. Among them, the average price index of long materials was 117.53 points, down 15.5% year-on-year; The average plate price index was 113.51 points, down 13.9% year-on-year. Cisa key statistics member steel enterprises in the first half of the operating income of RMB 3.19 trillion, down 5.56% year-on-year, operating costs down 3.06% year-on-year, revenue decline is greater than the cost of 2.5 percentage points; Total profit was RMB 33 billion, down 68.8% year on year; The average sales profit margin was 1.03%, down 2.1 percentage points year-on-year; The loss reached 44.6 percent, 17.4 percentage points higher than the same period last year. In terms of suppliers, China imported 576 million tons of iron ore in the first half of the year, an increase of 7.7%, and the average import price was 114.5 US dollars per ton, down 11.7%. Cisa key statistics of the main raw material procurement costs of enterprises decreased year-on-year, including domestic iron concentrate, imported powder ore, coking coal, metallurgical coke, scrap steel procurement costs decreased by 7.2%, 3.9%, 18.0%, 25.2%, 19.5%. In terms of customers, the steel consumption structure changed in the first half of the year, the proportion of steel used in the construction industry declined, and the proportion of steel used in ships, automobiles, home appliances, wind power and photovoltaic increased. Among them, the automobile industry in the new energy vehicles and export driven performance is better, the shipbuilding industry to maintain a good momentum of development, wind power, photovoltaic industry to maintain rapid growth, the overall demand of the home appliance industry to remain stable, the real estate industry continues to slump. Overall, the long-term fundamentals of China's economy have not changed, the economic recovery process presents the characteristics of wave-like development and zigzag forward, and the steel industry will still be a challenge and opportunity in the second half of the year. On the one hand, the contradiction between supply and demand will continue, the market competition will become more and more fierce, and the enterprise operation is still facing greater pressure; On the other hand, the state has introduced policies and measures to promote the transformation of urban villages and the construction of "dual use" public infrastructure, and boost the bulk consumption of automobiles, electronic products, home furnishing, etc., and relevant policies and measures will also bring structural demand to the steel industry. 2. The company's development positioning, main business, main products The company is a world-class enterprise, firmly committed to the strategy of "green manufacturing, intelligent manufacturing, high-quality manufacturing, lean manufacturing, accurate service", adhere to the development direction of "high-quality + service", continue to improve the ability of "manufacturing + service", continue to optimize the product structure, production line structure and customer structure, and continue to promote high-end product research and development focusing on electrical steel, automotive plate, tinplate. From the initial listing of 4 million tons of high-quality rod and wire production enterprises, the company has transformed into a leading technology, green and low-carbon technology company with 21.7 million tons of high-end plate production capacity. The main business of the Company is the production and sales of steel products and metal soft magnetic materials (electrical steel) (1) Zhixin Co. 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 electric steel and electric steel without orientation two big series, oriented electric steel including high magnetic induction, magnetic domain refinement, low noise, low excitation, no underlying, intermediate frequency six products, independent research and development of low temperature slab reheating technics producing high magnetic induction orientation technology of electric steel, as 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. After building the world's first high-grade non-oriented electrical steel production line for new energy vehicles in August 2022, Zhixin Co. built the world's first professional production line for electrical steel with 100% thin specifications and high magnetic induction orientation in April 2023. (2) Jingtang Co. Jingtang Co., the large steel base, is a company with international advanced level designed and constructed in 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. The products include two series of hot and cold plate products, of which the hot plate products form hot rolled sheet products based on hot rolled pickling plate, weathering steel, automotive structural steel, high-strength engineering machinery steel, pipeline steel, bridge steel, energy steel, pipeline steel, ship plate, Marine steel, medium and thick plate product series; The cold series products are mainly automobile plate, tinned (chrome) plate, cold rolled special plate and color coated plate. (3) Qianshun Base Iron and steel products of Qianshun Base is an important high-end plate production base in China, with world-class equipment and industry-leading clean steel manufacturing technology, with high-end auto plate, high-end household appliance board full range of supply capacity. Iron and steel products of Qianshun Base include hot and cold plates. The hot plates mainly contain: hot-rolled pickle sheet, weather-resistant steel, automobile structure steel, high-strength construction machinery steel, pipeline steel, etc. The cold plates mainly contain: automobile sheet, cold-rolled special-use plate, etc. 3.Overview The Company focuses on the main business, seize the key links, key tasks continue to follow up. The company with effective and competitive supply, to achieve accurate docking with downstream customer demand, at the same time, the company with internal extreme work to hedge external adverse effects, the ultimate efficiency, extreme energy efficiency, extremely low cost concept throughout the whole process of operation and production. Therefore, in the first half of the year, a number of production and operation indicators reached the best level in history, and operational capacity and asset quality continued to improve. (1) Completion of the Company's main operating indicators During the reporting period, the Company's operating income was RMB 57.368 billion, a decrease of 9.22% year-on-year; Total profit was RMB 566 million, a decrease of 76.49% compared with the same period last year; Net profit attributable to shareholders of listed companies was RMB 410 million, down 77.14% year-on-year; Earnings per share of RMB 0.05, down 77.97%; The total assets are RMB 141.597 billion, and the equity attributable to shareholders of listed company was RMB 49.106 billion. In the second quarter, the Company's operating income was RMB 28.653 billion, down 0.22% from the previous quarter. The total profit was RMB 579 million, an increase of 4553.85% from the previous quarter; Net profit attributable to shareholders of the listed company was RMB 468 million, an increase of 906.90% from the previous quarter; and the earnings per share was RMB 0.0623, up 930.67% from the previous quarter. (2) The achievement of major products: i. Metallic soft magnetic material (Electric steel) Zhixin Co.: Metal soft magnetic materials (electrical steel) production 848,200 tons, an increase of 18.23%. Among them, 135,500 tons, an increase of 39.24%; Non-oriented medium and low grade 31,700 tons, an increase of 15.68%; Non-oriented high grade 40.09 million tons, an increase of 14.39%. The sales volume of metal soft magnetic material (Electrical steel) was 839,100 tons, and the operating income was RMB 6.976 billion, accounts for 12.16% of the Company's operating income. ii. Iron and steel products Qiangang Co.: Iron 4.302,800 tons, an increase of 3.13%; Steel 4.52 million tons, an increase of 2.68%; 4.384,900 tons of materials (including cold-rolled raw materials), an increase of 4.54%. Jingtang Co.: 7,310,600 tons of iron, an increase of 2.69%; Steel 7.715 million tons, an increase of 0.12%; 7,332,100 tons of material, an increase of 0.99%. Cold-R Co: cold rolled sheet 926,300 tons, down 8.42%. The sales revenue of steel products was RMB 48.623 billion, accounts for 84.76% of the Company's operating income.
4.The company's business highlights (1) Continuously optimized product mix The Company's three strategic products adhere to the development strategy of continuous leadership of electrical steel, fine and strong automotive plate, and high-end breakthrough of tinplate, to achieve double improvement of product quality and efficiency. During the reporting period, the total output of the three strategic products (electrical steel, automotive plate, tin-plated (chromium) plate) was 3.13 million tons, the output of nine key products (cold-rolled steel, hot-rolled pickling plate, weathering steel, energy steel, automotive structural steel, high-strength engineering machinery steel, pipeline steel, bridge steel, ship plate Marine steel) was 4.61 million tons, and the total output of strategic and key products was 7.74 million tons. Accounted for 66% of the company's total steel production, an increase of 4 percentage points.
(2) Reduce costs and increase efficiency The Company continues to explore cost reduction measures, actively respond to market changes, and vigorously promote process cost reduction, technology cost reduction, collaborative cost reduction, product structure efficiency. Qiangang Co. to develop 107 key work to reduce costs and increase efficiency, and Jingtang Co. set up 18 reduce costs and increase efficiency research group, step by step breakdown of detailed measures 1303, through the weekly promotion, monthly supervision, special supervision, tons of steel to reduce costs and increase efficiency exceeded the plan. In terms of process cost reduction, strengthen the operation of the integrated platform before iron, Qiangang Co. and Jingtang Co. carry out research on coal and ore blending, adhere to economic materials, resource coordination and mutual availability, reduce inventory costs, Qiangang Co.'s iron cost decreased by 14% year-on-year, and Jingtang Co.'s iron cost decreased by 12% year-on-year; Breaking the process interface, the iron water temperature of Qiangang Co. decreased by 7.7℃ compared with the previous year, hitting a new low. In terms of technology cost reduction, we carried out in-depth alloy replacement and composition optimization, improved the control accuracy level through technical research, optimized product material design, and steadily increased the product yield, among which the product yield of non-oriented electrical steel products for new energy vehicles increased by 4.5% over the previous year. In terms of collaborative cost reduction, the formation of a production and supply coordination mechanism to carry out comprehensive and all-factor material cost reduction; Strengthen supplier negotiations, extend the pressure forward, and reduce costs at the source; Strengthen the control of equipment costs, reduce single maintenance and outsourcing, and reduce the purchase price of spare parts. In terms of product structure efficiency, guided by product profitability, production and marketing coordination, dynamic optimization of product structure, the market demand for pickling products increased in May, and the company's pickling products increased by 30,000 tons more than planned. (3) Production line efficiency improved The company dug deep into the ultimate efficiency of the production line, the whole process of production continues to be efficient and stable, and the production efficiency of each production process of iron, steel and materials has improved significantly in the second quarter compared with the first quarter. The coke load of Qiangang Co. No. 3 blast furnace was stable at 6.0, refreshing the historical record, and the iron output exceeded the best level for 3 times; Steelmaking achieved daily production and daily production "double records", pickling product production in May hit the best monthly production level in history, and the comprehensive hot charge heat delivery rate increased by 8% over the previous year. The utilization coefficient of Jingtang Co. 's three blast furnaces was 2.45, maintaining the industry leading; Monthly production records were refreshed 17 times in each production line. The comprehensive hot-charging and hot-delivery rate of hot-rolled and medium-thick plate products was 10% higher than that of the previous year; The MCCR production line continued to improve efficiency, and the maximum number of cast furnaces was increased to 27. Zhixin Co.'s overall output of electrical steel in May refreshed the monthly production record. In April, Zhixin Company built the world's first professional production line of electrical steel with 100% thin specifications and high magnetic induction orientation, 5 months ahead of the planned period, and contributed about RMB 150 million to the profit of the second quarter's oriented product increase. The key equipment of the production line is 100% independent integration, independent installation and independent debugging of the ring furnace. The localization rate of the equipment is as high as 95%, and the unit efficiency is improved by more than 30% compared with the original design of the foreign party, creating the best operating level of similar units in China. Through continuous research and comprehensive optimization, the process speed of the decarbonizing annealing unit has set a new record, and the efficiency of the machine has increased by more than 27%. The process speed of the hot drawing flat breaks the bottleneck, and the efficiency of the machine is increased by 15%. The new production line provides a strong support for Shougang electrical steel product innovation research and development and upgrade iteration. (4) Process energy consumption to pursue the ultimate At the end of 2022, Qiangang Co. and Jingtang Co. were awarded the first batch of "Double carbon Best Practice Energy Efficiency Benchmarking Demonstration Plant Cultivation Enterprises" by CISA. During the reporting period, the company formulated the "Beijing Shougang Co., Ltd. energy cost reduction and extreme energy Efficiency integrated promotion Plan", established institutions and improved mechanisms, determined the ultimate energy efficiency goals and tasks of each process according to the relevant national standard bank benchmark values, and promoted the "extreme energy efficiency" project in steps. The cumulative energy consumption of the coking process of Qiangang Co. completed 109.6kgce/t, reaching the benchmark value continuously from March to June, the cumulative energy consumption of the blast furnace process completed 388.5kgce/t, of which completed -29.5kgce/t, reaching the benchmark value from June. The cumulative energy consumption of the coking process of Jingtang Co. completed 100.9kgce/t, which was stable and better than the benchmark level; the cumulative energy consumption of the 3# blast furnace process completed 358.2kgce/t, which was better than the benchmark value in 5 months; the cumulative energy consumption of the converter process completed -29.3kgce/t, which was better than the benchmark value in 4 months. II. Analysis of core competitiveness 1. Market-leading technology The Company, Jingtang Co., Zhixin Co., Cold-R Co. are high-tech enterprises, R&D investment of RMB 1.868 billion during the reporting period, accounts for 3.26% of the operating revenue. Technological innovation is guided by benefit and demand, relying on the research and development system of "one institute and multiple centers", making technical research projects, expert workstations and platforms for external cooperation. The cultivation of new products, new technologies and new technological processes is accelerating. New Product development: 23SQGD085LS and 15SQF1250 oriented electrical steel products are the world's first. Compared with conventional products, 23SQGD085LS product reduces the excitation power by 25%, meeting the special requirements of "two networks" high-quality transformers with low no-load loss and low reactive power, which can further improve the safety of the power grid and support the needs of low-carbon development of the power grid. 15SQF1250 is a future-oriented medium frequency oriented electrical steel new product, is the world's thinnest oriented electrical steel products, compared with the traditional deep processing ultra-thin strip 0.15mm the highest grade, the performance level increased by 7 grades, to reach the world's leading level, to meet the power industry under complex conditions of large capacity, high energy efficiency, high safety, low noise requirements. It provides the key core materials for the new DC convergence technology of wind power, photovoltaic and other new energy power generation, and meets the development requirements of AC/DC flexible interchange of the future power grid. Focus on solving the "stuck neck" problem, continue to promote the "alternative import" localization of 26 projects, the first half of the supply of nearly 40,000 tons. Patents: The Company has obtained 330 patents, including 137 invention patents, 192 utility model patents, and 1 design patent. Standards: As a standard industry benchmark, the Company has participated in the development of 60 standards at all levels, including leading the development of 24. Science and technology awards: The Company organized the application of Hebei Province science and technology awards 3, which has successively passed the formal review and network review, is about to enter the evaluation stage. At the same time, the Company declared 2 metallurgical industry science and technology awards, which has completed the jury review. 2. High-end products The company's electrical steel production of 848,200 tons, an increase of about 18%, of which high-end products accounted for 63%, an increase of 1 percentage point. Among them, the output of high magnetic induction oriented electrical steel was 135,500 tons, an increase of about 39%, and 0.20mm and below ultra-thin specifications of high magnetic induction oriented electrical steel continued to maintain the first position in domestic sales. The company continued to optimize the structure of non-oriented electrical steel products, and the output of high-grade non-oriented electrical steel products was 400,900.00 tons, an increase of about 14%. Among them, the production of high-grade non-oriented electrical steel products for new energy vehicles increased by about 59% year-on-year, which stabilized the supply of 8 of the top 10 car companies in the global sales of new energy vehicles. The company's automotive plate production of 1,946,800 tons, an increase of about 8%. The product structure was further optimized, and the output of galvanized, high-strength and outer plate increased by 18%, 18% and 21%, respectively. Ultra-high strength and aluminized silicon products increased by 11% and 71%, respectively. The user structure was further upgraded, and the share of core Oems increased steadily; Shipments to Japanese customers increased by 7% year-on-year; The supply of new energy users increased by 85% year-on-year. The company's tin (chromium) plate production of 329,700 tons, an increase of about 11%. This increases the company's efforts to develop overseas markets, the product is mainly made of high-sulfur resistance food cans to supply the Latin American market; Orders for functional beverage cans increased by 29% year-on-year, and orders for high-end varieties further increased. The company's key product features, differentiation promotion has also made new progress. Record deliveries of 9Ni steel for Marine LNG fuel tanks. High steel grade hydrogen pipeline steel mass production, the product in the first hydrogen doped pipeline in China to achieve 10,000-ton demonstration application. Photovoltaic bracket with weathering steel to achieve 490-800MPa level full coverage; The product achieves 420MPa level product batch supply. Enamelled steel (SRT550) was successfully applied to the 28,500 square meter very large tank project in Dominica, Spain. 3. Green and low-carbon The company actively promotes low-carbon management and LCA management around national low-carbon requirements and customer carbon reduction needs. To carry out the construction of low-carbon management system, combined with the company's low-carbon practice, the company has formulated low-carbon action plans and planning implementation plans. The blast furnace of Jingtang Company with 55% proportion of pellets runs stably, and the smelting experiment of 35% proportion of pellets is carried out steadily in Qiangang Company, and the carbon reduction at source is steadily promoted. Carry out experiments on low-carbon products, improve the carbon reduction capacity of technology, and achieve mass production of low-carbon automotive plate coating products with comprehensive carbon emissions reduced by more than 30% by using the continuous casting process of 40% scrap ratio; For the first time in the industry, the production of a full range of GA low-carbon products such as IF steel, low-carbon aluminum sedated steel and ultra-high strength steel and the trial production of client molding have been carried out, and the comprehensive application evaluation from the inner plate to the outer plate of the automobile has been completed, reaching the same quality as the conventional process. Hot continuous rolling steel sheet and steel strip products were successfully released on the EPD platform of the steel industry, and 4 categories of oriented electrical steel, pipeline steel, non-oriented electrical steel for List" of the Ministry of Industry and Information Technology. During the reporting period, Zhixin Electromagnetic's high-end oriented and non-oriented electrical steel products were applied to transformers, new energy vehicles, industrial motors, and home appliances industries, which could reduce downstream carbon dioxide emissions by about 2 million tons by improving energy efficiency and motor efficiency. 4. Intelligent manufacturing The company has a cross-regional, multi-base, unified production and marketing integration collaborative management platform, and the evaluation level of the integration of the two has reached the "innovation breakthrough stage". The digitization rate of the company's production equipment exceeds 90%, the "one-button control" process reaches 50, the application of 129 sets of "industrial robots", and the unmanned intelligent reservoir area is 15. During the reporting period, the company focused on promoting digital transformation and intelligent manufacturing around "iron integration" and "Shunleng Lighthouse Factory construction". After the company completed the construction of the "Integrated iron Management Information System" project, the basic data monitoring, collection and analysis of pellet, sintering and blast furnace areas were realized, which effectively reduced the cost of iron and provided important support for improving the integrated collaborative management and control of iron pre-production areas. During the reporting period, the company's "iron water temperature drop control" system was officially launched to achieve visual tracking of torpedo tanks, on-demand iron production, torpedo tank life cycle management and other functions, which helped improve the （未完）  |