Shagang's net profit in 2021 increased by 38.56% to 87.06% over the same period last year, focusing on the production and sales of special steel.

Shagang shares released a pre-increase report on January 17, and the net profit of shareholders belonging to listed companies in 2021 is expected to be 900 million yuan to 1.215 billion yuan, an increase of 38.56% to 87.06% over 2020.

According to statistics, the net profit of Shagang shares belonging to shareholders of listed companies in the first quarter was 225 million yuan, an increase of 128.88 percent over the same period last year, and the cumulative net profit in the first half of the year was 546 million yuan. It is estimated that the net profit income in the second quarter was 321 million yuan, and the net profit in the third quarter was 280 million yuan, an increase of 90.76% over the same period last year. It is estimated that the net profit income in the fourth quarter is 74 million yuan to 389 million yuan.

With regard to the reasons for the pre-increase in performance, Shagang shares said in the report that the overall operation of the iron and steel industry in 2021 is good, and the company has seized the market opportunity to actively respond to the energy "double control" policy and the requirements of power and production limitations. organize production and operation activities in an orderly manner. At the same time, we will continue to tap the potential of cost reduction, optimize marketing strategies, improve the level of service quality, continue to improve production and operation, and achieve a substantial increase in net profit belonging to the parent company compared with the same period last year.

According to previous information disclosure, with the implementation of double carbon in 2021, Shagang shares implemented a series of asset disposal around green upgrading and other projects, and realized the high-quality transformation and development of iron and steel business and improved the core competitiveness.

It is worth noting that Shagang has also experienced twists and turns in 2021, first in early August, when the five-year asset restructuring was terminated, and then in November when Shagang was notified by the Securities Regulatory Commission on suspicion of illegal information disclosure by its controlling shareholders. Although Shagang stressed that the filing ratio had an impact on the company's normal business activities, the share price of Shagang fell sharply due to the news. At the same time, according to the media, the latest issue of 1 billion yuan ultra-short-term financing bonds of Shagang has also been cancelled.

However, Shagang shares in the announcement announced the termination of asset restructuring, said that in the future will take a number of measures to achieve high-quality transformation and development of the iron and steel business. Since then, Shagang will focus on the main business. Shagang is currently mainly engaged in the production and sales of Youte steel. The main products cover seven series of automotive steel, mechanical industrial steel, energy steel, construction machinery steel, rail transit steel, mining steel, marine anchor chain steel, 560 specifications and nearly 1000 steel grades. About 35% of the products are used in the automotive industry, 32% in equipment manufacturing, 12% in construction machinery, 10% in the energy industry, and the rest in mining, shipping, rail transit and other industries.

In early December, Huaigang, a holding subsidiary of Shagang, used its own funds to buy Delong Nickel's favorite ironmaking capacity target of 1.385 million tons.