Heshan Iron and Steel Co., Ltd.: year-on-year pre-increase of 50% in 2021, 70% increase in steel prices and obvious increase in the prosperity of the industry.

Heshan Iron and Steel Co., Ltd. previously released a pre-report on its annual results for 2021, which disclosed that it is expected to achieve a net profit of 2.547 billion yuan to 2.886 billion yuan attributable to shareholders of listed companies in 2021, an increase of 50% and 70% over the previous year.

According to statistics, the net profit of Hegang shares belonging to shareholders of listed companies was 482 million yuan in the first quarter, the cumulative net profit in the first half of the year reached 1.51 billion yuan, and the net profit in the third quarter reached 848 million yuan. It is estimated that the net profit of Hegang shares in the fourth quarter is expected to be 189 million yuan to 528 million yuan.

Heshan Iron and Steel Co., Ltd. is a super-large iron and steel enterprise formed by the combination of the three listed companies of Tangshan Iron and Steel Co., Ltd., Handan Iron and Steel Co., Ltd., Chengde Vanadium and Titanium Co., Ltd. it is one of the largest listed iron and steel companies in China. with an annual production capacity of 30 million tons of iron and steel, it is an intelligent manufacturing base of Chinese high-quality plate, high-quality building materials and vanadium and titanium products, and a comprehensive service provider in the global high-end market. The products of Hegang cover important application fields such as automobile, petroleum, railway, bridge, construction, electric power, transportation, light industry, household appliances, cold-rolled sheet, high-strength threaded steel bar, pipeline steel and other high-end products.

For the reasons for the pre-increase in 2021 performance, Hegang shares said in the announcement that in 2021, steel prices rose sharply compared with the same period last year, and the overall operation of the iron and steel industry is good. The company actively seizes the favorable opportunity of the market, strengthens the internal cost control, vigorously promotes the reform of the marketing mode, continues to optimize the product and customer structure, continues to improve the operating efficiency, and achieves a substantial increase in performance in 2021 compared with the previous year.

It should be noted that in 2021, in order to adjust the iron and steel industry structure and achieve transformation, upgrading and high-quality development, the old area of Handan Branch of Handan Iron and Steel Co., Ltd. tried to withdraw from the city to relocate, and the coking projects and iron and steel projects of Hegang shares were relocated through this relocation. Re-investment planning.

According to the previous announcement, Heshan Iron and Steel Co., Ltd. and Hebei Nenghua Hi-Tech Co., Ltd., a wholly-owned subsidiary of Huafeng Yuda Group Co., Ltd., jointly set up a coking project company to jointly implement the construction and operation of coking projects. Two coking projects with a capacity of 2.1 million tons and 70 holes are planned to be completed and put into production by the end of June 2022.

Jointly set up an iron and steel project company with Hebei Nengjia Investment Co., Ltd., jointly implement the construction and operation of iron and steel projects in the new area. Construction of a closed raw material yard, 2 400m2 sintering machines, a 2 million ton pellet production line, 1 3200m3 blast furnace, 1 3700m3 blast furnace, 1 250t converter, 2 100t converter, 1 1780mm hot continuous rolling, 1 double stand 3500mm wide and thick plate, 2 bar production lines and supporting public auxiliary facilities. The total investment of the project is expected to be 21.3 billion yuan and is scheduled to be completed and put into production by the end of June 2022. Both companies completed their industrial and commercial registration in November.