[年报]首钢股份(000959):2023年年度报告（英文版）
原标题:首钢股份:2023年年度报告（英文版） 2023 Annual Report 18 April 2024 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. Chairman Qiu Yinfu, General Manager Sun Maolin, Chief Accountant Liu Tonghe, and Accounting Officer Gong Juanjuan declare that they guarantee the authenticity, accuracy, and completeness of the financial reports in this year's report. All directors have attended the board meeting to review this report. 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. The profit distribution plan approved by the board of directors is as follows: based on 7,794,611,605, cash dividends of RMB 0.3 (including tax) will be distributed to all shareholders for every 10 shares, and 0 bonus shares (including tax) will be issued and there is no conversion of reserve into share capital. CONTENTS SECTION I. IMPORTANT NOTICE, CONTENT, DEFINITIONS ...................................................................................................................................................... 2 SECTION II. COMPANY PROFILE AND MAJOR FINANCIAL INDICATORS ........................................................................................................................... 6 SECTION III. DISCUSSION AND ANALYSIS OF BUSINESS OPERATIONS .......................................................................................................................... 8 SECTION IV. CORPORATE GOVERNANCE..................................................................................................................................................................................... 29 SECTION V. ENVIRONMENT AND SOCIAL RESPONSIBILITY ................................................................................................................................................ 46 SECTION VI. SIGNIFICANT EVENTS ............................................................................................................................................................................................... 52 SECTION VII. MOVEMENTS IN SHARE CAPITAL AND SHAREHOLDERS .......................................................................................................................... 59 SECTION VIII. PREFERRED SHARES ............................................................................................................................................................................................. 65 SECTION IX. BONDS ........................................................................................................................................................................................................................... 66 SECTION X. FINANCIAL REPORT ......................................................................................................................................................................................................72 File directory for reference 1. Accounting statements signed and stamped by the Chairman, General Manager, Chief Accountant, and Head of Accounting Institution. 2. Original audit report with the seal of the accounting firm, signature and seal of the CPA. 3. Original copies of all company documents and announcements publicly disclosed in newspapers designated by the 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 □ Non applicable
√ Applicable □ Non 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
The Company’s net profit before and after deducting non-recurring profit and loss in the last three fiscal years is negative, and the audit profit of the last year presents that the Company’s ability of continuing operations is uncertain. □ YES √ NO The net profit before and after deducting non - recurring profit and loss is negative. □ YES √ NO VII. Difference of accounting data under accounting rules in and out of China 1. Differences of net profit and net assets in financial statements disclosed according to International Financial Reporting 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. VIII. Major financial indicators by quarter in 2023 Unit: RMB Yuan
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 □ Non applicable Unit: RMB Yuan
During the reporting period, there is no other item that meet the definition of exceptional gain/loss. Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/Loss Items: □ Applicable √ Non applicable During the reporting period, there is no non-recurring profit and loss item defined and listed in "Explanatory Announcement No. 1 of Information Disclosure of Companies offering securities to the public non-recurring profit and loss" as recurring profit and loss items. Section III. Discussion and Analysis of Business Operations I. The industry situation of the Company during the reporting period In 2023, China's economy maintained a positive trend of recovery and the growth of GPD was 5.2%. The upstream raw fuel prices in the steel industry remain reletively high, while downstream demand has recovered less than expected. The year-on-year decline in steel market prices is greater than that of the raw material end. Steel enterprises are facing significant pressure in production and operation, and the industry as a whole is showing a trend of “weakened demand, price decline, high costs, and declining profits”. According to data from the National Bureau of Statistics, in 2023, the production of crude steel and steel in China was 1.019 billion tons and 1.363 billion tons, respectively, with a year-on-year growth of 5.2%. According to data from China Steel Association, the average value of China Steel Price Index (CSPI) in 2023 was 111.60 points, a year-on-year decrease of 9.02%. Among them, the average value of the board index was 111.53 points, a year-on-year decrease of 8.12%; The average value of the long material index is 115.00 points, a year-on-year decrease of 10.24%. On the upstream side, raw fuel costs fluctuate and differentiate. The procurement costs of main raw materials for key statistical enterprises of China Steel Association have fluctuated, with domestic iron concentrate and imported fine ore procurement costs increasing by 4.37% and 5.34% year-on-year, respectively. The procurement costs of coking coal, metallurgical coke, and scrap steel have decreased by 18.75%, 21.57%, and 14.11% year-on-year, respectively. Downstream, there has been a change in the consumption structure of steel. The demand for steel in the green and low-carbon driven new energy industry is increasing, while the demand for traditional steel in industries such as automobiles, shipbuilding, and household appliances is improving. Among them, the automotive industry has performed well driven by new energy vehicles and exports, the shipbuilding industry has maintained a good development momentum, the wind power and photovoltaic industries have maintained growth, the home appliance industry has recovered in line with expectations, and the real estate industry has continued to be sluggish. Steel exports have significantly increased, while imports have maintained a downward trend. According to statistics from the General Administration of Customs, China's cumulative steel exports in 2023 were 90.264 million tons, a year-on-year increase of 36.2%; The cumulative import volume of steel was 7.645 million tons, a year-on-year decrease of 27.6%. II. Main business of the Company during the reporting period The Company continues to benchmark against world-class enterprises, firmly adheres to the strategic determination of "green manufacturing, intelligent manufacturing, boutique manufacturing, lean manufacturing, and precision services", adheres to innovation driven, and promotes technological innovation to become the company's first competitive advantage. Adhering to the development direction of "boutique+service", continuously improving "manufacturing+service" capabilities, continuously optimizing product structure, production line structure, and customer structure, and continuously promoting high-end product research and development with a focus on electrical steel, automotive panels, and tin plated (chromium plated) plate. The Company has transformed from a high-quality bar and wire production enterprise with a production capacity of 4 million tons in the early stage of listing to a technology leading, green, and low-carbon technology company with a high-end plate production capacity of 21.7 million tons. 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 for metal soft magnetic materials (electrical steel), and is a leading global manufacturer and service provider of electrical steel. The products include two major series: oriented electrical steel and non oriented electrical steel. Among them, oriented electrical steel includes six categories of products: high magnetic induction, magnetic domain refinement, low noise, low excitation, no bottom layer, and medium frequency. Zhixin Co. has independently developed low-temperature slab heating technology to produce high magnetic induction oriented electrical steel, becoming the fourth enterprise in the world to industrialize all low-temperature processes; Non oriented electrical steel includes four major categories of products: new energy vehicles, stress relief annealing, high-efficiency, and general-purpose, with stable batch production capacity for all grades. The world's first high-grade non oriented electrical steel production line for new energy vehicles was completed in August 2022, and the world's first specialized production line with 100% thin specification and high magnetic induction oriented electrical steel was completed 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. Iron and steel products of Jingtang Base 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, shipboard, marine 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 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. 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. III. Analysis of core competitiveness 1. Leading level of technology The Company adheres to innovation driven approach and promotes technological innovation as its primary competitive advantage. The Company and its subsidiaries Jingtang Co., Zhixin Co., Cold-R Co. are all high-tech enterprises, with R&D investment of RMB5.022 billion during the reporting period, accounting for 4.41% of operating revenue. Relying on the "one institute, multiple centers" R&D system, the company carries out in-depth technical research projects, optimize expert workstations, and solidify external cooperation platforms. The incubation and efficiency creation of new products, technologies, and processes are constantly accelerating. The significant progress made during the reporting period includes: Patents: The Company has obtained 685 patent authorizations, including 229 invention patents. Zhixin Electromagnetic won the Excellent Award at the 24th China Patent Award for two patents: "A Method and Device for Determining the Transmission Torque of Cold Rolling Mills" and "A Non oriented Electrical Steel and Its Preparation Method and Application". "A Low temperature High Magnetic Induction Oriented Silicon Steel Manufacturing Method with Excellent Bottom Layer" won the Excellent Award at the 1st Hebei Provincial Patent Award. Standards: The Company establishes the participated in the formulation and publication of 21 international, national, industry, and group standards, with 6 of them leading the development. Science and technology awards: The Company has received 21 provincial and ministerial level scientific and technological awards and 8 provincial management innovation awards. Among them, 6 key technologies and applications for enhancing formability of dual phase steel manufacturing won the first prize of Metallurgical Science and Technology Award, "New high-performance weather resistant bridge steel and key application technologies" won the first prize of Hebei Province Science and Technology Award, and "Development and operation management of high-end electrical steel products for steel enterprises to build global competitiveness" won the first prize of National Management Innovation Achievement Award. 2. High-end products The company adheres to the development strategy of continuously leading the way in electrical steel, refining and strengthening automotive panels, and breaking through the high-end of tin plated (chromium plated) plate. It continuously increases the proportion of strategic and key products, promoting both product quality and efficiency improvement. During the reporting period, the production of the three major strategic products (electrical steel, automotive panels, and tinned (chrome) panels) increased by about 12% year-on-year, while the production of key products increased by about 17% year-on-year. The production of electrical steel is 1.695 million tons, a year-on-year increase of about 14%, and the proportion of high-end products is steadily increasing. In the electrical steel category, high-end products accounted for 65%, an increase of 2% year-on-year. The production of high magnetic induction oriented electrical steel is 300,000 tons, an increase of about 46% year-on-year. Ultra thin specifications of high magnetic induction oriented electrical steel with a thickness of 0.20mm and below continue to maintain the top sales position in China. The structure of non oriented electrical steel products continues to be optimized, with a production volume of 808,000 tons of high-grade non oriented electrical steel products, a year-on-year increase of about 11%. Among them, the production volume of high-grade non oriented electrical steel products for new energy vehicles increased by about 29% year-on-year. 8 of the top 10 global sales companies for new energy vehicles have stable supply, and all of the top 10 domestic sales companies have achieved stable supply. The production of automotive panels reached 4.025 million tons, a year-on-year increase of about 12%, and new breakthroughs were made in the adjustment of product structure and user structure. The product structure has been further optimized, with the production of galvanized, high-strength, and outer panels increasing by about 21%, 15%, and 24% year-on-year, respectively. The production of ultra-high strength and aluminum-silicon products has increased by about 6% and 39%, respectively. The supply of UF steel has doubled year-on-year. The user structure has been further upgraded, with a steady increase in the number and supply of core host factories. The supply of Japanese users has increased by about 38% year-on-year, while the supply of new energy clients has increased by about 51% year-on-year. The production of tin (chromium) plates reached 656,000 tons, a year-on-year increase of about 6%. The Company has completed the industrial trial production of the DR-10 product for secondary cold rolling, achieved full coverage of DR material brand numbers, stable mass production of 0.13mm food cans, and further improved manufacturing capabilities. The production of functional drinks and easy to open lid products has reached a historic high, and the proportion of high-end varieties is steadily increasing. Intensify overseas market development efforts and supply high sulfur resistant food cans to the Latin American market. New progress has been made in promoting the specialization and differentiation of key products, serving national key projects. Marine LNG fuel tanks were produced using 9Ni steel in 10 consecutive heats, with delivery volume tripling year-on-year; High grade hydrogen pipeline steel is produced in bulk, and the product has achieved a demonstration application of tens of thousands of tons in the first hydrogen blending pipeline in China; Successfully developed 18m ultra long pipeline steel in collaboration with downstream pipeline factories, filling the gap in domestic ultra long pipelines; The photovoltaic bracket is made of weather resistant steel to achieve full coverage of 490-800MPa level; Wind power steel achieved batch supply of 420MPa level products, with a 6-fold increase in supply volume compared to the same period last year; Enamel steel (SRT550) has been successfully applied in the 28,500 square meter ultra large tank project in the Dominican Republic. 3. Green and low-carbon As the world's first steel enterprise to achieve full process ultra-low emissions, the Company has deeply promoted ultra-low emission governance and maintained an A-level environmental performance evaluation in Hebei Province. The company adheres to the high-quality development path of green and low-carbon, and actively promotes the practice of extreme energy efficiency and carbon reduction technology around the national low-carbon strategy and customer carbon reduction needs. Processes in Steel Enterprises and the Demonstration Acceptance Standards and Methods for Energy Efficiency Benchmarks, contributing to the promotion of the industry's ultimate energy efficiency engineering. The Company has been awarded the titles of "Benchmark Enterprise for Green Development of Steel", "Advanced Collective for Three Year Action Organization and Promotion of Energy Efficiency Benchmark for Ultimate Energy Efficiency Engineering of Steel in 2023", and "Provincial Water saving Enterprise in 2023". Jingtang Co. has been awarded the first batch of "Pilot Demonstration Units for Carbon Management System Construction" in Hebei Province. The EPD products of the company and its subsidiaries, including hot-rolled steel plates and strips, cold-rolled steel plates and strips, hot-dip galvanized aluminum magnesium alloy coated steel plates and strips, have been successfully released on the EPD platform in the steel industry. Five categories of products, including oriented electrical steel, pipeline steel, non oriented electrical steel for new energy vehicles, hot-rolled high-strength steel plates and strips for automobiles, and cold-rolled high-strength steel plates and strips for automobiles, have been selected for the "Green Design Product List" of the Ministry of Industry and Information Technology. 4. Intelligent manufacturing The Company has established a cross regional, multi base, and consistent integrated production and sales collaborative management platform, with a digitalization rate of over 90% for production equipment, 51 "one click control" processes, 203 sets of "industrial robots" and 26 "RPA process robots" applied, and 15 unmanned intelligent storage areas built. During the reporting period, the focus was on promoting digital transformation and improving the level of intelligent manufacturing around "integration of railway front", "construction of cold rolling lighthouse factories", and "Jingtang Smart Logistics Control Platform". Complete the construction of the "Iron Front Integration" management system project, achieve data monitoring, collection, and analysis of pellet, sintering, and blast furnace processes, and provide important support for reducing iron costs and improving iron front integration collaborative control; The temperature drop control system for molten iron has been officially launched, realizing functions such as visual tracking of torpedo tanks, on-demand iron production, and torpedo tank lifecycle management, helping to improve the efficiency of molten iron logistics. The turnover rate of torpedo tanks has increased by one time per day compared to the previous year. The second phase of the "Cold Rolling Lighthouse Factory" will launch 25 applications, realizing the deepening application of intelligent manufacturing scenarios. The Jingtang Intelligent Logistics Control Platform achieves automation and intelligence in transportation planning, vehicle scheduling, and route planning, resulting in an overall improvement of 15% in logistics efficiency. 5. Supply chain security The Company is the only platform for the development and integration of the steel and upstream iron ore resources industry of Shougang Group, the controlling shareholder, in China. The supply of iron ore, coke, and coal resources for production is guaranteed to be safe. In terms of iron ore, Shougang Group owns Shuichang Iron Mine and Xingshan Iron Mine with an annual production capacity of 4 million tons of iron concentrate powder. At the same time, it controls Peru Iron Mine with an annual production capacity of 20 million tons of iron concentrate powder. The annual production capacity of the iron concentrate powder at the ongoing construction of Macheng Iron Mine is 7 million tons, which has the characteristics of high reserves, low cost, and efficient transportation. After being put into operation, the company's iron ore resource guarantee capacity will be further improved. In terms of coke, Qiangang Co.'s coke is mainly supplied by Qian'an Zhonghua Coal Chemical Co., Ltd., a joint venture between Shougang Group and Kailuan Group, while Jingtang Co.'s coke is supplied by Tangshan Shougang Jingtang Xishan Coking Co., Ltd., a joint venture between Jingtang Co. and Shanxi Coking Coal. The supply of coke resources is strongly guaranteed. In terms of coal, the Company has signed long-term agreement with state-owned large coal groups, and Shougang Fushan Resources Group Co., Ltd., in which Shougang Group holds shares, also provides the Company with some high-quality coking coal resources, providing strong coal supply guarantee. 6. "Technology + Service" marketing The Company takes the customer as the center to deepen the marketing strategy of "technology + service", and creates Shougang service to enhance the brand value. The company continues to improve the service system, improve service efficiency, strengthen the construction of new energy vehicle service team, meet customers' requirements for quality, delivery, research and development, （未完）  |