[年报]首钢股份(000959):2024年年度报告（英文版）
原标题:首钢股份:2024年年度报告（英文版） 2024AnnualReport 16April2025 2024AnnualReport SECTIONI.IMPORTANTNOTICE,CONTENT,DEFINITIONS TheBoardofDirectors(the“Board”),thesupervisorycommittee,alldirectors,supervisors,andseniorexecutivesoftheCompanywarrantthattherearenofalserepresentations,misleadingstatements,ormaterialomissionsinthisannualreport;andarejointlyandindividuallyresponsibleforthetruthfulness,accuracyandcompletenessoftheinformationcontainedinthisannualreport. ChairmanQiuYinfu,GeneralManagerSunMaolin,ChiefAccountantLiu Tonghe,andAccountingOfficerCuiXiumeideclarethattheyguaranteetheauthenticity,accuracy,andcompletenessofthefinancialreportsinthisyear'sreport. Certain risks that may exist have been elaborated by the Company in thisreport.PleaserefertoDiscussionandAnalysisofBusinessOperationsfordetails.Theprofitdistributionplanapprovedbytheboardofdirectorsisasfollows:based on 7,773,981,020, cash dividends of RMB 0.22 (including tax) will bedistributedtoallshareholdersforevery10shares,and0bonusshares(includingtax)willbeissuedandthereisnoconversionofreserveintosharecapital.CONTENTS SECTIONI.IMPORTANTNOTICE,CONTENT,DEFINITIONS........................................................................................2 SECTIONII.COMPANYPROFILEANDMAJORFINANCIALINDICATORS....................................................................6 SECTIONIII.DISCUSSIONANDANALYSISOFBUSINESSOPERATIONS......................................................................9 SECTIONIV.CORPORATEGOVERNANCE..................................................................................................................35 ......................................................................................SECTIONV.ENVIRONMENTANDSOCIALRESPONSIBILITY 59 SECTIONVI.SIGNIFICANTEVENTS............................................................................................................................66 SECTIONVII.MOVEMENTSINSHARECAPITALANDSHAREHOLDERS....................................................................77 SECTIONVIII.PREFERREDSHARES............................................................................................................................84 SECTIONIX.BONDS....................................................................................................................................................85 ................................................................................................................................. SECTIONX.FINANCIALREPORT 89 Filedirectoryforreference 1. AccountingstatementssignedandstampedbytheChairman,GeneralManager,ChiefAccountant,andHeadoftheAccountingInstitution. 2. Originalauditreportwiththesealoftheaccountingfirm,signature,andsealoftheCPA.3. OriginalcopiesofallcompanydocumentsandannouncementspubliclydisclosedinnewspapersdesignatedbytheChinaSecuritiesRegulatoryCommissionduringthereportingperiod. 4. “TheArticlesofAssociationofBeijingShougangCompanyLimited”,etc.Interpretation
I. Companyinformation
AccountingfirmengagedbytheCompany
FinancialconsultantengagedbytheCompanytoperformcontinuoussupervisiondutiesinthereportingperiod□Applicable√Non-applicable VI. Majoraccountingdataandfinancialindicators WhethertheCompanyhasretroactiveadjustmentorre-statementonpreviousaccountingdataornot□YES√NO
theauditedprofitofthelastyearpresentsthattheCompany’sabilitytocontinueoperationsisuncertain.□YES√NO Thenetprofitbeforeandafterdeductingnon-recurringprofitandlossisnegative.□YES√NO VII. DifferenceofaccountingdataunderaccountingrulesinandoutofChina1. DifferencesofnetprofitandnetassetsinfinancialstatementsdisclosedaccordingtoInternationalFinancialReportingStandardsandChineseAccountingStandards □ Applicable√Non-applicable ThereisnodifferencebetweenthenetprofitandnetassetsinthefinancialstatementsdisclosedinaccordancewithInternationalFinancialReportingStandardsandChineseAccountingStandardsduringthereportingperiodoftheCompany. 2. DifferencebetweennetprofitandnetassetsinfinancialstatementsdisclosedaccordingtoforeignaccountingstandardsandChineseAccountingStandards □ Applicable√Non-applicable Thereisnodifferencebetweenthenetprofitandnetassetsinthefinancialstatementsdisclosedinaccordancewithforeign accountingstandardsandChineseAccountingStandardsduringthereportingperiodoftheCompany.VIII.Majorfinancialindicatorsbyquarterin2024 Unit:RMBYuan
financialindicatorsdisclosedintheCompany’squarterlyreportandsemi-annualreport□YES√NO IX. Itemsandamountsofnon-recurringprofitandloss √Applicable□Non-applicable Unit:RMBYuan
Duringthereportingperiod,thereisnootheritemthatmeetsthedefinitionofexceptionalgain/loss.ExplanationofwhytheCompanyreclassifiesasrecurrentanexceptionalgain/lossitemlistedintheExplanatoryAnnouncement No.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic—ExceptionalGain/LossItems: □ Applicable√Non-applicable Duringthereportingperiod,thereisnonon-recurringprofitandlossitemdefinedandlistedin"ExplanatoryAnnouncementNo. 1ofInformationDisclosureofCompaniesofferingsecuritiestothepublic non-recurringprofitandloss"asrecurringprofitand lossitems. SECTIONIII.DISCUSSIONANDANALYSISOFBUSINESSOPERATIONS I. TheindustrysituationoftheCompanyduringthereportingperiod In2024,China'seconomygenerallyoperatedsteadilyandimproved,andtheannualGDPgrowthwas5%,accomplishing the economic growth work target at the beginning of the year. The domestic iron and steel industry has effectively met the higher demand for materials in China's economic transformation andupgrading,andthehigh-qualitydevelopmenthasbeenpromotedinanorderlymanner,butthecontradictionbetween supply and demand still exist, and the industry as a whole shows the characteristics of “supply remains high, demand structural adjustment, strong growth in exports, prices continue to decline, and the benefits continue to be squeezed”. According to the data issued by the China Steel Association, the key statisticalenterprisesoftheChinaSteelAssociationrealizedatotalprofitofRMB42.9billionin2024,ayear-on-yeardecreaseof50.3%;theaveragesalesprofitrateof0.71%,ayear-on-yeardecreaseof0.63percentagepoints. Intermsofproductoutput,domesticcrudesteeloutputdeclinedyear-on-year,andtheproductstructurecontinuedtobeadjusted.AccordingtodatafromtheNationalBureauofStatistics,China'scrudesteeloutputin2024was1.005billiontons,adecreaseof1.7%year-on-year,whilesteeloutputwas1.400billiontons,anincreaseof1.1%year-on-year.Thestructuraladjustmentofsteelproductsisstillcontinuing,accordingtothestatisticsoftheChinaSteelAssociation,theproportionofsteelusedintheconstructionindustrydecreasedto50%, andthe proportion of steel used inthe manufacturing industry increased from 42% in2020 to 50% in 2024. In terms of product prices, steel prices declined year-on-year throughout the year. According to data fromtheChinaSteelAssociation,theaveragevalueofChinaSteelPriceIndex(CSPI)in2024was102.47points,ayear-on-yeardecreaseof8.39%.Amongthem,theaveragevalueofthelongmaterialindexis105.22points,a year-on-year decrease of 8.83%; The average value of the board index was 100.58 points, a year-on-year decreaseof10.09%. Ontheupstreamside,rawfuelcostsfluctuatedownward,andthedeclineinrawfuelpriceswaslessthanthe decline in steel prices. According to the statistics of the China Steel Association, China imported 1.237 billiontonsofironorein2024,anincreaseof4.9%year-on-year,andtheaveragepriceofimportswasUSD106.93perton,ayear-on-yeardecreaseof7.08%.Theprocurementcostsofcokingcoal,metallurgicalcoke,andscrapsteelofkeystatisticalenterprisesoftheChinaSteelAssociationdecreasedby8.14%,11.28%,and8.68%year-on-year,respectively. Downstream, steel consumption structure further differentiation, showing “industrial strong,constructionweakness”pattern,newenergyvehicles,shipbuilding,advancedmachinery,andotherhigh-endmanufacturing industries have become the main growth point of steel demand, real estate and othertraditional fields continue to decline. Among them, the green low-carbon driven new energy industry steel demandshowedrapidgrowthin2024,thenewenergyvehicleproductioncompleted12,888,000,anincreaseof 34.4% year-on-year; The shipbuilding industry maintains a good development momentum, with China's shipbuilding completion volume increasing by 13.8% year-on-year in 2024, and the volume of new orders increasing by 58.8% year-on-year; The home appliance industry maintained stable growth under the driving factorsofpolicyincentives,consumptionupgrading,andexportgrowth,withtheannualcumulativeoutputofairconditioners,refrigerators,washingmachinesandcolorTVsincreasingby9.7%,8.3%,8.8%and4.6%year-on-yearrespectively. In terms of imports and exports, steel exports rose sharply in 2024, while imports are expected tomaintainadownwardtrend,exportsshoweda“volumeupandpricedown”trend.AccordingtothestatisticsoftheChinaSteelAssociation,Chinaimported1.237billiontonsofironorein2024,anincreaseof22.7%year-on-year,andtheaveragepriceofimportswasUSD755perton,ayear-on-yeardecreaseof19.3%.Cumulativesteelimportswere6.815milliontons,adecreaseof10.9%year-on-year.Overall,the supporting conditionsandbasictrendsforthelong-term improvementof China's economyhave not changed, and the macroeconomy is moving towards a new stage of development driven byinnovation and characterized by the growth of new-quality productive forces. 2024 is a critical year for the steel industry's deep adjustment, but structural development opportunities for high-quality companies still exist.Firstofall,theindustrysupplyanddemandpatternisexpectedtoimproveinthelongterm,theNDRCputforward“2025continuedimplementationofcrudesteelproductioncontrol,promotethesteelindustrytoreduce the amount of reorganization,” the iron andsteel industry will enter the stock optimization, volume reduction, and development stage, the contradiction between supply and demand is expected to be eased; Secondly,low-carbontransformationwillbringnewopportunitiesforthedevelopmentoftheindustry.InMay2024, the NDRC, MIIT, and other five departments jointly issued the “Special Action Plan for Energy Conservation and Carbon Reduction in the Iron and Steel Industry”, and in March 2025, the Ministry of EcologyandEnvironmentissuedthe“NationalCarbonEmissionTradingMarketCoverageoftheIronandSteel,Cement,andAluminumSmeltingIndustries”,andtheironandsteelindustrywasincludedinthemanagementof the carbon emission trading market, which has put forward higher requirements for the industry's green transformation andupgrading; Finally, topromote consumption upgrading andimprove the implementationof consumer quality policies, will be new industries such as new energy vehicles, high-end manufacturing, humanoid robots will bring new high-end steel demand, science and technology innovation of the “key variables” is expected to become the industry to promote the high-quality development of the “largest increment”. II. MainbusinessoftheCompanyduringthereportingperiod The Company is firmly adhering to the strategic determination of "green manufacturing, intelligentmanufacturing,boutiquemanufacturing,leanmanufacturing,andprecisionservices",adherestoinnovation-driven,andpromotestechnologicalinnovationtobecomethecompany'sfirstcompetitiveadvantage.Adhereto create “manufacturing + service” competitive advantage, continuously optimizing product structure, productionlinestructure,andcustomerstructure,andcontinuouslypromotinghigh-endproductresearchanddevelopmentwithafocusonelectricalsteel,automotivepanels,andtin-plated(chromium-plated)plates.TheCompanyhastransformedfromahigh-qualitybarandwireproductionenterprisewithaproductioncapacityof 4 million tons in the early stage of listing to a technology-leading, green, and low-carbon technology companywithahigh-endplateproductioncapacityof21.7milliontons.ThemainbusinessoftheCompanyistheproductionandsalesofsteelproductsandmetalsoftmagneticmaterials(electricalsteel). 1.ZhixinCo. Zhixin Co. is a research and development, manufacturing, and sales base for metal soft magneticmaterials(electricalsteel),andisaleadingglobalmanufacturerandserviceproviderofelectricalsteel.Theproductsincludetwomajorseries:orientedelectricalsteelandnon-orientedelectricalsteel.Amongthem,orientedelectricalsteelincludessixcategoriesofproducts:highmagneticinduction,magneticdomainrefinement,lownoise,lowexcitation,nobottomlayer,andmediumfrequency.ZhixinCo.hasindependentlydeveloped 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,andgeneral-purpose,withstablebatchproductioncapacityforallgrades.Thecompanyhastheworld'sfirsthigh-gradenon-orientedelectricalsteelproductionlinefornewenergyvehicles and the world's first specialized production line with 100% thin specification and high magnetic inductionorientedelectricalsteel. 2.JingtangCo. Jingtang Co, the large steel base, is a company with an internationally advanced level designed andconstructedinaccordancewiththeconceptofcirculareconomy.Ithastheobviousadvantagesofbeingneartheseaandneartheharbor,largeequipment,highproductionefficiency,andlowcost.The products include two major series of hot and cold plates, of which the hot plates are mainly hot- rolled pickling plates, weather-resistant steels, automobile structural steels, high-performance construction steel,pipelinesteels,andmediumthicknessplatesforbridgesteel,energysteels,pipelinesteels,marinesteel, andoffshoresteels;andthecoldplatesaremainlyautomobilesheets,tinsheet,cold-rolledspecial-useplate,andcolorcolor-coatedsheetseries. 3.QianshunBase IronandsteelproductsofQianshunBaseareanimportanthigh-endplateproductionbaseinChina,withworld-classequipment andindustry-leadingclean steelmanufacturingtechnology, with high-endautoplate,high-endhouseholdapplianceboardfullrangeofsupplycapacity. Theproductsincludetwomajorseriesofhotandcoldplates,ofwhichthehotplatesmainlycontain:hot-rolledpicklesheet,weather-resistantsteel,automobilestructuresteel,high-strengthconstructionmachinery steel, pipeline steel, medium to high carbon special steel, etc. The cold plates mainly contain: automobile sheets,cold-rolledspecial-useplates,etc. III. Analysisofcorecompetitiveness 1. Leadingleveloftechnology The Company adheres to the innovation-driven approach and promotes technological innovation as itsprimary competitive advantage, and continuously applies its technological achievements to high-end product development, efficient production and manufacturing, green and low-carbon manufacturing, and other fields. TheCompanyanditssubsidiariesJingtangCo.,ZhixinCo.,andCold-RCo.areallhigh-techenterprises.Duringthereportingperiod,ZhixinCo.washonoredonthelistofChina'sUnicornEnterprisesandwasawardedbytheStateCouncil as an outstanding “Science and Technology Reform Enterprise” of the year. The Company integrates internal and external resources, relying on the "one institute, multiple centers" R&D system, the Company carries out in-depth technical research projects, optimizes expert workstations, and solidifies external cooperationplatforms.Theincubationandefficiencycreationofnewproducts,technologies,andprocessesareconstantlyaccelerating.Thesignificantprogressmadeduringthereportingperiodincludes:Patents: The Company has obtained 405 patent authorizations, including 125 invention patents. Thepatents are mainly concentrated in the fields of new product development and efficient production, among which“RewindingMethodandDeviceforCoilingMachine”wontheExcellenceAwardofthe25thChinaPatentAward,andfivepatents,including“DevelopmentofKeyTechnologyforHigh-PrecisionFlexibleRollingofUltra-Wide Cold Continuous Rolling Mills and its Industrialized Application” and 9 other patents, were awarded the GoldPrizeoftheExhibitionofthe27thNationalInventionExhibition.Attheendof2024,theCompanyhadbeenauthorized3,924patents,including1,379inventionpatents. Standards:TheCompanyhasparticipatedintheformulationandpublicationof36international,national,industry,andgroupstandards,with17ofthemleadingthedevelopment.Scienceandtechnologyawards:TheCompanyhaswonanumberofawardsforlow-carbontechnologyandadvancedprocessmanufacturingtechnology.The“GreenCleanSteelmakingTechnologyandApplicationBasedonCarbonDioxideResourceUtilization”wasawardedtheSecondPrizeofNationalScientificandTechnologicalProgress,the“IntegrationandInnovationofMCCRMulti-ModeFullContinuousCastingandRollingIntegrationTechnology” was awarded the Special Prize of Metallurgical Science and Technology, and six achievements, including the “High-quality, Efficient, and Stable Rolling Technology and Application of High-Silicon Electrical Steel”,wereawardedtheFirstPrizeofMetallurgicalScienceandTechnology.2. High-endproducts 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 tin-plated (chromium- plated)plate.Itcontinuouslyincreasestheproportionofstrategicandkeyproducts,promotingbothproductqualityandefficiencyimprovement.Duringthereportingperiod,theproductionofthethreemajorstrategicproducts(electricalsteel,automotivepanels,andtinned(chrome)panels)increasedbyabout7%year-on-year,whiletheproductionofkeyproductsincreasedbyabout2%year-on-year.Theproductionofelectricalsteelis1.986milliontons,anincreaseofabout17%year-on-year,andtheoutput of high-end products has achieved a historical high record. The output of high magnetic induction- oriented electrical steel is 332,000 tons, an increase of about 11% year-on-year, and the ultra-thin specificationofhighmagneticinduction-orientedelectricalsteelof0.20mmandbelowcontinuestomaintainthe leading sales volume in China. The structure of non-oriented electrical steel products continued to be optimized,withaproductionvolumeof893,000tonsofhigh-gradenon-orientedelectricalsteelproducts,anincrease of about 11% year-on-year, of which the production volume of high-grade non-oriented electrical steel products for new energy vehicles increased by about 27% year-on-year, and the stable supply of new energy vehicles was realized by the world's top 10 sellers and the domestic top 10 sellers, and one out of everythreedomesticnewenergyvehiclescarriedthe“ShougangCore”.Theproductionofautomotivepanelsreached4.394milliontons,ayear-on-yearincreaseofabout9%,andnewbreakthroughsweremadeintheadjustmentofproductstructureanduserstructure.Theproductstructurewasfurtheroptimized,withtheproductionofgalvanized,high-strength,andouterplateincreasingby about 24%, 18%, and 15% year-on-year respectively, the production of zinc-aluminum-magnesium andaluminum-siliconproductsincreasingbyabout19%,and27%year-on-yearrespectively,andtheproductionofUF steel increasing by about 71% year-on-year. The user structure was further upgraded, with the supply volumeofproductsfornewenergyvehiclesincreasingbyabout35%year-on-year.Theproductionoftin(chromium)platesamountedto690,000tons,anincreaseofabout5%year-on-year, and the manufacturing capacity was further improved. The production of key products such asfunctional drinks, easy-open lids, and aerosol valves for use accounted for 65% of the total, an increase of about24%year-on-year.ThetinandchromiumplatesofDRmaterialhaveachievedfullcoverageofstrengthlevel,thesupplyofDImaterialhasreached16,000tons,arecordhigh,andtheculturalandcreativeproductssuchas“5GSteel”haveappearedonCCTVFinanceandEconomyandbecomepopularintheNPCandCPPCC.Newprogresshasbeenmadeinpromotingthespecializationanddifferentiationofkeyproducts,servingnationalkeyprojectsandemergingindustries.Thethinspecification9Nisteelrollingandheattreatmentmanufacturingcapacitywasfurtherimproved,realizingthefirstbatchsupplyof5mmthinspecificationlandtankproducts.100mmsuper-thickhigh-strengthwindpowersteelisappliedtotheoffshorewindpowerprojectinZhanghua,Taiwan,136mmextra-thick800MPahydropowersteelissuppliedtothenationallarge-scalehydropowerprojects,bridgesteelisappliedtotheworld'slargestspancable-stayedbridge-ChangtaiYangtzeRiverBridgeandacid-resistantpipelinesteelisusedintheconstructionofoverseasenergyprojects.TheCompanyhasestablishedajointlaboratorywithZhongshanQingliantodevelopmediumtohighcarbonspecialsteelforgardeningtoolsandotherspecialsteels,whichhavebeensuppliedinlargequantities;completedthedevelopmentofX60gradehydrogenpipelinesteel,andpresidedovertheformulationofthenationalstandardof“SteelPlatesandStripsforHydrogenTransportationandStoragePipelines,”whichhasledthedirectionofthedevelopmentofhydrogenpipelinesteels. 3. Greenandlow-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 anA-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 nationallow-carbonstrategyandcustomercarbonreductionneeds. Duringthereportingperiod,theCompanyfulfilledthelow-carbonactionplan,launchedahigh-qualitysteelprojectwithnearly“zero”carbonemission,andsignedamemorandumofcooperationongreenandlow-carbonsteelandironsupplychainwithcorecustomerssuchasBMWBrillianceandVolvo,andsetupaclosed-loopsteelrecyclingsystemtobuildagreenecologicalsupplychainandhelprealizethedual-carbongoal.The Company was honored as “Green and Low-carbon Excellence Enterprise” and “Iron and Steel Green Development Benchmarking Enterprise”, Jingtang Co. was honored as “Water Efficiency Leader” again, and Jingtang Co. and Qiangang Co. completed the on-site inspection and acceptance of the energy-efficiency benchmarkingdemonstrationenterprise,andJingtangCo.wasawardedthefirstbatchof“Double-carbonBestPractice Energy Efficiency Benchmarking Demonstration Plants” in the industry. The Company successfully published EPDs for three products: pickled hot-rolled steel plates and strips, thick steel plates (heat-treated), andthicksteelplates. 4. Intelligentmanufacturing The Company has established a cross-region, multi-base, consistent integrated production and salescollaborative management platform, empowers high-quality development with digital transformation, makes full use of the strategic opportunities brought by new-generation information technologies such as big data, cloud computing, artificial intelligence, 5G, etc., and carries out in-depth construction of intelligent manufacturing projects, which has made great progress in terms of efficiency and benefits, products and services,managementandcontrolsystem,andpreventionandcontrolcapabilities,andhasconstructedasolidfoundation for high-quality development. The digitization rate of the production equipment of the Company exceeds91%,thenumberof“one-buttoncontrol”processesreaches51,240setsofindustrialrobotsareapplied,15unmannedintelligentwarehousesareconstructed,thedigitalworkforceplatformisestablishedbyapplyingthe RPA (Robotic process automation) technology, and 26 use cases of process robots are constructed, which significantlyimprovestheefficiencyofthebusinessprocess. During the reporting period, Cold-R Co. was selected as a national intelligent manufacturing benchmark enterpriseandlistedasoneofthefirstbatchesofexcellence-levelintelligentfactoryprojectsofMIITbyvirtueof theconstructionresultsofanintelligentfactorybasedonsuper-convergencecomputingplatform;JingtangCo.realizedthefirstcaseof5Gprivatenetworksinkingintheindustryandwasselectedasoneofthe“5Gfactorydirectories” of MIIT for the year of 2024, and was awarded the title of “5G+Industrial Internet” annual benchmark demonstration case, and was honored as the “Outstanding Contribution Enterprise of Intelligent Manufacturing”intheironandsteelindustry,“DigitalPilot”enterpriseofHebeiProvince.5. Supplychainsecurity TheCompanyistheonlyplatformforthedevelopmentandintegrationofthesteelandupstreamironoreresourcesindustryofShougangGroup,thecontrollingshareholder,inChina.The supplyofironore,coke,andcoalresources forproductionisguaranteed to besafe.Interms ofiron ore,ShougangGroup owns ShuichangIron Mine and Xingshan Iron Mine with an annual production capacity of 4 million tons of iron concentrate powder.Atthesametime,itcontrolsthePeruIronMinewithanannualproductioncapacityof20milliontonsofironconcentratepowder,andtheMachengIronMine withanannualproductioncapacityof7milliontons.MashongIron Mine,which ischaracterized byhighreserves,lowcost,andefficienttransportationintermsofenvironmental protection, hasentered into thetrial productionstage,andthe Company's ability toguarantee ironmineresourceswillbefurtherimprovedafteritisputintoproduction.Intermsofcoke,QiangangCo.'scokeismainlysuppliedbyQian'anZhonghuaCoalChemicalCo.,Ltd.,ajointventure betweenShougangGroupandKailuan Group, while Jingtang Co.'s coke issupplied by Tangshan Shougang Jingtang Xishan Coking Co., Ltd., a jointventurebetweenJingtangCo.andShanxiCokingCoal.Thesupplyofcokeresourcesisstronglyguaranteed.In terms of coal, the Company has signed a long-term agreement with state-owned large coal groups, and ShougangFushanResourcesGroupCo.,Ltd.,inwhichShougangGroupholdsshares,alsoprovidestheCompanywithsomehigh-qualitycokingcoalresources, providingastrongcoalsupplyguarantee.6. “Technology+Service”marketing TheCompanytakesthecustomerasthecentertodeepenthemarketingstrategyof"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 the new energy vehicle service team, and meetcustomers'requirementsforquality,delivery,researchanddevelopment,service,andtechnicalmarketingcontinuestostrengthen.EVIservicecapacitywasimprovedyearbyyear.Duringthereportingperiod,EVIsupplyincreased by 15% year-on-year. The product advantage analysis model established by the company promotes key products to maintain competitive advantages and strategic products to expand leading advantages by strengtheningproductresearchanddevelopmentandimprovingmanufacturingcapacity.Acentralized,unified,rapidresponseandefficientmarketingmanagementnetworkhasbeenformed,witha marketing center as the core and a combination of 5 regional steel trading subsidiaries and 11 processing centers, effectively ensuring stable supply to downstream customers. 15 large customer service teams have been established to consolidate and improve the channel structure that combines leading enterprises in the industry chain with high-quality small and medium-sized customers. Cultivate comparative advantages in industrial chain cooperation, carry out comprehensive, multi-level, and high-quality cooperation with key customers in the industry, further enhance cooperation depth, enhance cooperation viscosity, and stabilize marketshare. Duringthereportingperiod,theCompanysignedcooperationmemorandumswithcorecustomerssuchasBMW Brilliance, Volvo, and Geely, carried out “Shougang Day” activities with Dongfeng Nissan and Chery Automobile, carried out technical exchanges with five enterprise such as Toyota Intelligent Electric Vehicle ResearchandDevelopmentCenter,andsetupthe Shougang-ZhongshanQinglian"JointLaboratoryforR&DofSteelforGardenTools”,awarded“ExcellentSupplier”byGACHondaandNantongCIMC,“OutstandingSupplier”byGeely,and“BestServiceAward”byDongfengHonda,andthe“OutstandingPartnerAward”ofHaierGroupand38otherawards,therecognitionofShougang's"Manufacturing+Service"continuestoincrease.7. Talentthrivingenterprise TheCompanyhasdeeplypromotedthestrategyofstrengtheningenterpriseswithtalent,builtamulti-leveland comprehensive training system for all employees, improved the talent promotion and evaluationmechanism, and facilitated the career development path of talents. A career development system for high potential talents throughout their entire life cycle has been established, and solidly promoted the "four horizontal and three vertical" training system for all employees, held training programs such as Deep Blue SpecialTrainingCampandFutureCraftsmanYouthTrainingCamp,strengthentalentempowerment,andbuildaplatform for cadres to improve and grow; Optimize the top-level design of talent development channels, strengthen the performance-oriented and practical orientation, strengthen the training and development of high-levelpersonnel,andsteadilyincreasetheproportionofhigh-techandhighskilledtalents.Duringthereportingperiod,onepersonfromtheCompanywontheFirstPrizeofMetallurgicalScienceandTechnology Award for Scientific and Technological Achievements of First-Line Workers, one person won the 2024NationalMayDayLaborMedal,onepersonwasselectedasoneofthefirstbatchofcultivationobjectsofGreatPowerCraftsmen,andoneinnovationstudiowasawardedastheBeijing-levelinnovationstudio.IV. Analysisofprincipalbusiness 1. Overview (1) CompletionstatusoftheCompany'smainbusinessindicators Duringthereportingperiod,theCompany'soperatingrevenuewasRMB108.311billion,ayear-on-yeardecrease of 4.79%; The total profitwas RMB 746 million,ayear-on-year decrease of17.18%; The netprofit attributabletoshareholdersofthelistedcompanywasRMB471million,ayear-on-yeardecreaseof29.03%;Earnings per share was RMB 0.0607, ayear-on-year decrease of 29.09%; The total assets was RMB 131.856 billion,andtheequityattributabletotheshareholdersofthelistedcompanywasRMB49.617billion.(2) HighlightsoftheCompany In2024,theCompany'soperationandproductionwerestable,withsignificantachievementsinproductmix,technologicalinnovation,greenandlow-carbon,intelligentmanufacturing,internalcostreduction,andESGmanagement. ①Continuousoptimizationofproductstructure TheCompanycloselymonitorsthechangesindownstreamdemand,focusesonefficiency,continuouslypromotesproductstructureoptimizationandupgrading,andincreasestheproportionofstrategicandkeyproducts.Duringthereportingperiod,theoutputandshareofkeyandstrategicproductswerethebestinhistory.During the reporting period, the total production of 3 strategic products (electrical steel, automotive（未完）  |