Baosteel Co.,Ltd. releases 2012 annual report on March 30. Last year, faced with complicated external business environment, Baosteel Co.,Ltd. remains calm, overcomes difficulties, improves production, marketing and research system synergy, ensures production and sales balance under economic operation, strengthens carbon steel main business, consolidates key product market share, enhances operational management, promotes internal full range potential tapping and finishes annual production and operation tasks successfully. Last year, Baosteel Co.,Ltd.sells 23,566,000 tons of billet products and achieves 191.51 billion yuan of total revenue, 13.14 billion yuan of total profit, maintaining optimal business results within domestic industry.
The report says that this year, China's steel industry business environment is expected to be slightly better than last year. Promotion in urbanization, central and western development and the development of advanced manufacturing provide steel industry with stable development space. However, the difficulties facing the industry is great. Downstream demand slows down while capacity expansion is not effectively curbed. Raw material cost remains high and homogeneity competition expands rapidly to high-end products. Thus industry meagre profit status will continue for a long time.
This year, Baosteel Co.,Ltd. establishes its total business objectives: 171.5 billion yuan of total revenue, operation results maintain optimal among domestic counterparts, unique and leading product sales reach 11.33 million tons, expense goes down by 10% compared with same period last year. Baosteel Co.,Ltd. plans to produce 21.49 million tons of iron, 22.56 million tons of steel and sell 22.26 million tons of billet product this year.
The report elaborates on the company's future development strategy. In order to cope with domestic and international economic environment and steel industry development environment's rapid change, with "becoming world-class steel producer and service provider, achieveing human civilization and creating better life" as its mission, Baosteel Co.,Ltd. will continue to adhere to "integrity, cooperation, innovation, pursuit of maximum corporate value" core values. The new round of development plan explicitly states the three visions of the company "becoming steel technology leader, environmentally friendly best practitioner, model of mutual development between enterprise and employees" and raises "becoming the world's most competitive steel enterprise and the listed company with most investment value"strategic objective.
Based on iron and steel and to achieve the goal of "the world's most competitive steel enterprise", Baosteel Co.,Ltd. will continue to adhere to leading technology and complete the construction of three steel premium product manufacturing base: Shanghai base will base on domestic and face the global market, with high end variety, high market share and high competitiveness products as the main feature. It will become the enterprise's high-end sheet and steel strip premium product base; Meishan Steel will base on East China market, and in conjunction with shanghai base product, become the enterprise's hot-rolled, pickling, tin plate premium product base; Zhanjiang Steel will base in South China with exports to Southeast Asia market and become the world's most efficient carbon steel plate factory.
Future-oriented and to achieve "listed company with most investment value" strategic objective, Baosteel Co.,Ltd. will actively explore and implement "from steel to material, from manufacturing to service, from China to the world" three transformation and upgrading strategy from three aspects: extending service areas, innovating business models and expanding development space. At the same time, it will promote the application of IT new technology in the steel industry, develop e-commerce and continuously strengthen information technology's supporting function on the company's management change and management decision-making; enhance information industry's market viability and make breakthrough in enhancing performance and market influence; carry out upstream and downstream strategic selective investment and build a safe and reliable resources security system.
Around the enterprise's business general policy and business overall goal this year and combined with planning requirements and the implementation of Group Corporation leader plan, driver plan and mutual growth plan, Baosteel Co.,Ltd. will focus on promoting the following ten aspects this year: remaining vigilant, attaching great importance to and strengthening safety management; system coordination, strengthening customer-centric marketing system; differences in competition, promoting product structure optimization; advaning science and technology, with emphasis on technical innovation's contribution to business; with eyes inward, tapping potential and efficiency; going all out in Zhanjiang Steel project construction and operation preparation; optimizing allocation and enhancing full aperture labor efficiency; clean production, improving energy and resource efficiency; team work, evoking employees' passion; combining long term with short term, promoting new six-year development plan.
Baosteel "sustainability report" (2012) is also released as part of the important content of the annual report.
