2025-04-17-深交所-首钢股份_2024年年度报告（英文版）_207页_1mb

Beijing Shougang Company Limited 2024 Annual Report Summary

Core Content

The 2024 Annual Report of Beijing Shougang Company Limited (Shougang Stock, Stock Code: 000959) provides a comprehensive overview of the company's financial performance, business operations, corporate governance, and strategic direction. It outlines key financial data, industry trends, and the company's competitive advantages.

Key Financial Indicators

• The company's net profit and net profit after non-recurring items were negative over the last three years, indicating uncertainty in its ability to continue operations.
• The company reported a slight decrease in operating revenue in 2024 compared to 2023, and a significant decline in net profit, which was further reduced after non-recurring items.

Main Business and Product Structure

The company's primary business involves the production and sales of steel products and metal soft magnetic materials (electrical steel). It has diversified its product range into high-end and strategic categories such as electrical steel, automotive panels, and tin-plated (chromium-plated) plates.

1. Zhixin Co.

• A leading global manufacturer of metal soft magnetic materials (electrical steel).
• Products: Oriented electrical steel (6 categories) and Non-oriented electrical steel (4 categories).
• Technological achievements: Developed low-temperature slab heating technology, becoming the fourth company globally to industrialize low-temperature processes.
• Awards: Recognized as a China Unicorn Enterprise, and received awards for science and technology reform and patent excellence.

2. Jingtang Co.

• A large steel base with internationally advanced design and construction.
• Located near the sea and harbor, offering low cost, high production efficiency.
• Products: Hot and cold plates, including automobile sheets, tin sheets, weather-resistant steels, and marine steels.

3. Qianshun Base

• An important high-end plate production base in China.
• Offers high-end auto plates and high-end household appliance boards.
• Products: Hot plates (hot-rolled pickle sheets, weather-resistant steel, etc.) and cold plates (automobile sheets, cold-rolled special-use plates).

Industry Situation and Trends (2024)

• China's economy grew at 5% in 2024, with the steel industry facing a "supply remains high, demand structural adjustment" situation.
• Steel prices declined throughout the year, with the CSPI index dropping 8.39% year-on-year.
• Crude steel output decreased by 1.7% to 1.005 billion tons, while steel output increased by 1.1% to 1.4 billion tons.
• Construction industry demand for steel declined, while manufacturing demand increased, especially in new energy vehicles, shipbuilding, and high-end machinery.
• Steel exports rose sharply, but steel imports showed a downward trend.

Strategic Directions

• The company is committed to green manufacturing, intelligent manufacturing, boutique manufacturing, lean manufacturing, and precision services.
• It focuses on technological innovation and high-end product development, with a strong emphasis on electrical steel, automotive panels, and tin-plated (chromium-plated) plates.
• The company has transformed from a traditional steel production enterprise to a technology-leading, green, and low-carbon steel company.

Core Competitiveness

1. Technology Leadership

• The company and its subsidiaries (Zhixin Co., Jingtang Co., Cold-R Co.) are all high-tech enterprises.
• In 2024, the company obtained 405 patent authorizations, including 125 invention patents.
• It was granted 3,924 patents at the end of the year, with 1,379 invention patents.
• Participated in the formulation and publication of 36 international, national, industry, and group standards, with 17 leading the development.
• Received several science and technology awards, including the Second Prize of National Scientific and Technological Progress and the Special Prize of Metallurgical Science and Technology.

2. High-end Product Development

• The production of three major strategic products (electrical steel, automotive panels, tinned/chrome plates) increased by 7% year-on-year.
• High magnetic induction-oriented electrical steel output reached 332,000 tons, a 11% increase.
• The company has developed the world's first high-grade non-oriented electrical steel production line for new energy vehicles and the world's first specialized production line for ultra-thin, high-magnetic induction oriented electrical steel.

Reorganization and Key Events

• First Reorganization (2013-2014): Major assets swap with Shougang Corporation, resulting in the company's restructuring.
• Second Reorganization (2015-2016): The company acquired 51% shareholding of Jingtang Co., which is now a holding subsidiary.
• The company has no significant differences in financial data between Chinese and international accounting standards.

Non-recurring Profit and Loss

• The company reported non-recurring profit and loss of RMB 251,575,942.44 in 2024.
• Major items include government grants, reversal of impairment provisions, and debt reorganization.
• The impact of income tax and non-controlling interests were also considered in the calculation.

Conclusion

The 2024 Annual Report highlights the company's strategic shift towards high-end and green manufacturing, while also acknowledging challenges in the steel industry, including declining prices, structural demand shifts, and operational uncertainty. Despite these challenges, the company has strengthened its technological capabilities, expanded its high-end product range, and received numerous awards and recognitions, reinforcing its position as a leading player in the steel and metal soft magnetic materials sector.