2023-08-30-深交所-本钢板Ｂ_2023年半年度报告（英文版）_218页_2mb

Summary of Bengang Steel Plates Co., Ltd. 2023 Semi-Annual Report

Core Content Overview

This report provides a comprehensive overview of the financial and operational performance of Bengang Steel Plates Co., Ltd. for the first half of 2023. It includes important notices, company profile, main financial data, core competitiveness analysis, and management discussion and analysis. The report also outlines the company's strategic goals, business operations, and risk management practices.

Main Financial Data

Key Financial Indicators (RMB)

Changes in Financial Data

• Operating Income decreased by 12.70% due to weak steel demand and low profitability.
• Net Profit dropped significantly by 278.04%, indicating a loss in the first half of 2023.
• Net Cash Flow from Operating Activities increased by 1,949.94%, driven by improved cash management and reduced inventory.
• Basic and Diluted Earnings Per Share both declined, reflecting poor profitability.
• Return on Equity turned negative, showing reduced efficiency in generating returns.

Main Business and Strategic Highlights

Industry Development Situation

• The steel industry in the first half of 2023 experienced rebounding production but weak consumption, with overall steel prices declining.
• The company faced challenges in downstream demand, particularly in the second quarter.

Main Business and Products

• The company operates in iron and steel smelting, rolling processing, power generation, coal chemical industry, special steel profiles, railways, import and export trade, scientific research, and product sales.
• It has established a high-quality steel base, mainly for automotive steel, with over 60 product varieties and 7,500 specifications.
• High-value-added and high-tech products account for more than 80% of the product series.
• Key products include automotive surface panels, home appliance panels, oil pipeline steel, container panels, and ship panels, used in various sectors and exported to over 60 countries and regions.

Business Model

• Procurement: Domestic procurement is done through centralized bidding and negotiation; foreign procurement is via long-term partnerships and direct methods.
• Sales: Domestic sales use a direct model, while exports rely on the Bensteel Group International Economic and Trade Co., Ltd. marketing network.

Core Competitiveness

1. Manufacturing Capacity

• The company refines production line division to promote economic operation.
• Focuses on quality improvement and customer-centricity, with the "seven iron laws" as a quality and service framework.
• Achieved improved quality cost and 100% delivery rate for key contracts.

2. Equipment Transformation and Upgrading

• A fixed asset investment plan of 1.52 billion yuan was issued, focusing on environmental protection, intelligent upgrades, and ultra-low emission transformations.
• Key projects like the No. 5 RH refining transformation and new tertiary dust removal system were completed or are in commissioning.

3. New Product Development

• Successfully developed 26 new products, with 24 achieving market sales, a 105% year-on-year increase.
• Developed galvanized high-strength QP980 + Z, expanding the third-generation automotive steel family.
• Introduced 18CrNiMo7-6 for wind power gears and BG650LW rim steel for high-strength and high-fatigue applications.

4. Technological Innovation

• Collaborated with Dalian University of Technology, Northeastern University, and Liaoning University of Science and Technology on 10 industry-university-research projects.
• Drafted 60 enterprise standards, with 2 international standards and 18 national/industry group standards under research.
• Released 2 group standards.
• Received 210 patents and 100 authorized patents, including 36 invention patents and 2 overseas patents.

5. Green Development

• Complied with ultra-low emission policies, implementing clean production and three-waste treatment.
• Achieved "AAA" scenic garden factory status and increased green area by 290,000 square meters.
• Green rate reached 14.53%.

6. Intelligent Manufacturing

• Advanced digitalization and intelligence initiatives, including 10 business systems.
• Implemented smart quality projects, such as quality consistency systems and energy centralized control.
• Increased automatic control rate by 30% in key areas and achieved 100% coverage of production execution systems.

Risk and Dividend Policy

• The company does not have significant risks requiring investor attention.
• No cash dividends, bonus shares, or capital reserve conversion will be distributed in the first half of 2023.
• Forward-looking statements are included but not considered substantial commitments.

Risk Management and Governance

• The company has detailed risk faced and countermeasures in Section III-X.
• The Board of Directors and management ensured the report's accuracy and completeness.
• Legal representative (Li Yan), Chief Financial Officer (Zheng Zhengli), and Chief Accountant (Sun Yanbin) provided guarantees on the financial report's integrity.

Information Disclosure

• The report is published in both Chinese and English, with the Chinese version taking precedence in case of discrepancies.
• The company disclosed information through designated media including "China Securities Journal", "Securities Times", Shenzhen Stock Exchange, and Juchao Information Network.

Conclusion

The company faced a challenging steel market in the first half of 2023, resulting in a significant loss and declining profitability. Despite this, it continued to focus on quality improvement, cost reduction, technological innovation, green development, and intelligent manufacturing, achieving notable progress in these areas. The company's core competitiveness remains strong, with diversified product offerings, strategic investments, and advanced production capabilities. However, the operating performance remains under pressure due to weak demand and high costs.