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Original title: Cost reduction and efficiency improvement of high-end Shougang shares in the first three quarters of revenue and net profit doubled year on year.
Our reporter Xiang Yantao
A few days ago, Shougang shares released a performance report for the first three quarters of 2020, showing that the company achieved an operating income of 54.686 million yuan in the first three quarters, a year-on-year increase of 7.73%; Net profit attributable to shareholders of listed companies was 1.175 billion yuan, an increase of 2.85% year-on-year.
In an interview with a Securities Daily reporter, Shougang said that with the normalization of epidemic prevention and control and the resumption of work and production in various industries, demand and prices for steel have steadily recovered. Among them, steel for automobiles in August and September Entering the peak season, has driven the growth of the company’s performance; At the same time, the company through refined management, reduced costs and adjusted the product structure, and focused on the high-end steel market to overcome the impact of the epidemic, and its operating performance grew against the tendency.
Achieve high-quality development
In the first half of this year, due to the impact of the epidemic, demand in the steel industry fell sharply, steel prices quickly bottomed out, and industry profits showed a downward trend. Since the end of the second quarter, driven by the resumption of work and production, the industry has bottomed out and gradually recovered.
Shougang’s shares told the “Securities Daily” reporter that the company has continued to adjust its product structure in recent years, focusing on the high-end steel market and focusing on three strategic products: automotive steel, electrical steel and tinplate. . Among them, in terms of automotive plates, the company’s low-carbon steel and ultra-low-carbon steel plates have good stamping performance, welding performance and high dimensional accuracy, and are widely used in various parts of automobiles.
In terms of electrical steel, Shougang Qiangang cold rolled electrical steel project is a landmark project for Shougang product upgrades. All production lines adopt advanced domestic and foreign equipment and integrate cutting-edge and cutting-edge technology at home and abroad. Large-scale production of a full range of electrical steel products is leading The advanced level of high-quality steel, whose cold-rolled oriented silicon steel into electrical steel is known as the “Pearl of the Iron Crown.”
In terms of tinplate, Shougang Jingtang Company has an annual production capacity of 500,000 tons of galvanized tinplate products, and its products are positioned as high-end food packaging galvanized tinplate plates. With advanced process equipment, rich production management experience, good service, and a first-class product research and development team, it has the manufacturing capabilities of the entire process from casting, hot rolling, cold rolling to coating. .
“The company has been working hard, continuously increasing investment in research and development, and improving the product market. It is to gain a firm foothold in the high-end market.” Shougang shares told the “Securities Daily” reporter that at present, the company continues to increase the market promotion of high-end products. The increase in the proportion of high-end products and the gradual increase in reputation in the high-end market have provided great support for performance. Since the beginning of this year, the company has made a breakthrough in supplying FAW Toyota, solidifying its position as Great Wall Motors’ number one supplier and becoming the only supplier of Volvo DH780 + Z in the region. from Asia and the Pacific. It also won the 2019 SAIC Volkswagen Outstanding Supplier Finalist Award. .
In addition to adjusting the product structure, Shougang has further improved its development quality through refined management. Shougang shares told reporters that in terms of cost reduction and efficiency improvement, taking Jingtang Base as an example, the company focused on the whole process and systematic cost reduction, focusing on collaborative cost reduction, technology cost reduction, management cost reduction, etc., and established 17 special research projects. Group, take full advantage of the integrated advantages of “production, supply and research” before iron, carry out coal mixing investigations, neatly adjust the furnace structure, and vigorously promote the recovery of sintered solid waste; promote the accumulation of carbon and oxygen of the converter, optimize the operation of the converter and reduce slag consumption; Coordinate fund operations, reduce financial expenses through supply chain financing, low-interest replacement, etc., and reduce costs and increase efficiency by more than 1 billion yuan in the first half of the year .
In addition, in terms of green development, Shougang Qiangang Co., Ltd. became the first company in the country this year and is currently the only company in the steel industry that has passed the full-process ultra-low emissions evaluation and acceptance.
Integrate resources to make it bigger and better
Backed by the Shougang Group, Shougang Co., Ltd. is also leveraging the Group’s resources to continue to grow and develop. According to the development plan of Shougang Iron and Steel Industry, Shougang Co., Ltd. will be an important platform for the development and integration of the Shougang Group’s steel and upstream iron ore resource industries in China and ultimately At this time, it will carry out the general listing of Shougang Group’s steel and upstream iron ore resource businesses in China.
Today, this process is accelerating. On September 25, Shougang Co., Ltd. issued the “Issue of shares for the purchase of assets and the obtaining of supporting funds and related transaction plans”, which showed that the public company intends to buy 11.5094% of the shares of Jingtang Company held by Beijing Investment Holdings through the non-public issuance of shares for specific purposes. , Jingguorui owns 7.6729% of the share capital of Jingtang Company. The objects of issue of the shares for the purchase of assets are Beijing Investment Holdings and Jingguorui. This matter is currently ongoing.
According to the announcement, after the completion of this transaction, Shougang shares will directly and indirectly own 100% of Jingtang shares, which will help further improve the profitability of listed companies. Additionally, the matching funds raised by this reorganization will help Shougang Co., Ltd. improve its cash flow and provide financial support for the construction of Jingtang Company’s engineering projects.
Previous announcements showed that Shougang has replaced its 12.83% national stock of Beijing Automobile Co., Ltd. with 51% of the steel trading company held by the Shougang Group. After the replacement, the steel trading company has become a subsidiary of Shougang. Steel Trading Company owns 29.82% of Jingtang Company. Through a series of equity operations, Shougang’s direct and indirect interest rate in Jingtang Company has increased from 51% to 80.82%.
Huaan Securities analyst Weng Jiamin told “Securities Daily” reporter that Jingtang Company has high profitability and high growth potential. Before and after this transaction, the scope of the consolidated financial statements of the listed company has not changed, but the net assets of Jingtang and The proportion of operating performance included in the equity and net profit attributable to the shareholders of the listed company. The profitability of the listed company is expected to increase once the transaction is completed. Furthermore, the introduction of strategic investors such as Beijing Investment Holdings and Jingguorui will further optimize the capital structure of listed companies.
