Since 2015, the steel industry since the world financial crisis ushered in the most critical moment, supply and demand, prices down, profits, bank loans drawn, environmental Forced, trade frictions and other deep-seated problems spate. Overall industry environment such as competitive enterprises within the industry of steel companies are not immune. After article 24 domestic steel companies in 2008 and 2013 to 2015 in the newspaper costs, profits, efficiency and other aspects of comparison, the 24 listed steel companies in overall profits down, profit margins have been squeezed in the state, industry chill is strong.
The report listed select SW SW steel industry in 24 listed companies (Anyang Iron and Steel, Anshan Iron and Steel shares, Bayi Iron & Steel, Baotou Steel shares, Baosteel, Benxi Iron and Steel plate, Hangzhou Iron and Steel shares, Hebei Iron and Steel, Valin Iron & Steel Shandong Iron and Steel, Jiuquan Hongxing, Lingganggufen, Liu steel shares, Maanshan Iron & Steel, Nanjing Steel, three steel Min light, Sha Steel shares, SGIS, Shougang shares, TISCO stainless steel, Wuhan Iron and Steel shares, the new steel shares, Xinxing Ductile Iron Pipes, Chongqing Iron & Steel) as the object of analysis, 24 listed steel companies in terms of financial strength, production scale, technology and equipment, or in terms of human resources, management capacity, represents the quality resources of China’s steel industry, which is management level and the effects can be substantially reflect basic overview of Chinese steel companies.
Operating income for three consecutive years of negative growth
During the mid-year report 2015, 24 listed steel companies operating revenue totaled 475.374 billion yuan, down 22.46 percent, three consecutive years of negative growth trend. 24 listed steel companies an average of 19.807 billion yuan revenue, there are 14 enterprises operating income below average.
During 2013 to 2015, reported that 24 listed steel companies operating income showed a year on year decline, especially in June 2015, not only hit the biggest decline in three years, and operating income and already lower than the same period in 2008. The first half of 2015, 24 listed steel companies, operating income more than 50 billion yuan of enterprise Baosteel only one (80.771 billion yuan), accounting for 16.99% 24 listed companies in the sum of operating income, operating income in the 20 billion yuan ~ A total of 50 billion yuan between enterprises 9, operating income of 100 billion to 200 billion company has six, eight enterprises operating income of 10 billion yuan or less, most companies focused on revenue 20 billion yuan less.
During the 2015 mid-year report listed steel company revenues dropped significantly, on the one hand and the sharp decline in steel prices, on the other hand also with the real estate market, “cool”, fixed asset investment growth rate down, as well as household appliances, automobiles and other major use Steel industry output fell year on year concerned. The deeper reason is the supply and demand imbalance.
Operating costs fell slightly greater than the revenue decline
24 steel companies in 2015 reported operating costs totaled 441.592 billion yuan, down 22.66 percent, three consecutive years of negative growth trend. 24 listed steel company’s operating costs with an average of 18.4 billion yuan, 10 enterprises operating costs above average. 24 listed steel company’s operating costs fell for three consecutive years and, in 2015 mid-year report is a record the biggest decline in three years, the sum of operating costs compared with the same period in 2008 decreased by 5.86%.
Since 2015, a substantial decline in operating costs listed steel companies mainly related to the upstream raw materials and fuel, especially concerning imports of iron ore into the downward spiral. In addition, the industry has long insisted the cost efficiency, tapping the potential of activities to mark the decline in operating costs and make a contribution.
Operating profit up sharply down
24 steel companies in 2015 mid-year report operating profit amounted to -48.91 billion, down 392.13 percent, 24 listed steel companies operating cost an average of -2.04 billion yuan, a total of 16 listed companies with varying degrees of loss, an increase 4.
In the first half, 24 listed steel companies gross profit totaled 33.783 billion yuan, but the total cost of more than three gross profit, resulting in a listed company through raw materials and fuel prices, as well as lowering the efficiency brought dividends are depleted . The first half of 2015, 24 listed steel companies 3 Total cost of 36.421 billion yuan, down 4.27 percent. Among them, the sales cost of 8.548 billion yuan, down 0.01%; administrative expenses 16.615 billion yuan, down 3.15 percent; the financial cost of 11.258 billion yuan, down 8.79 percent. A decline of three cost far less than the decline in revenue. 3 expenses, financial expenses fell the most obvious, in this regard and steel companies control the size of loans, the repayment initiative to reduce loans and other financing approaches to expand ways related; on the other hand also with increasingly stringent bank lending policies due to a decline in total loans. Decline in cost of sales in the three lowest cost, and this year, the market demand for steel products fell, companies increase sales efforts related.
In summary, we can draw the following conclusions:
① sharp decline in upstream costs and within the industry to take various measures to try to reduce the cost of the premise, the main reason for 24 listed steel companies reported operating profit in 2015 is still a substantial loss is not caused by excessive manufacturing costs, but manufacturing costs Factors other than the decision.
② manufacturing costs and not always go down, down there will always be limits. When the limit comes, there will be some steel companies out of the market.
③ During the mid-year report 2015, 24 listed steel companies three costs, administrative expenses and financial expenses as a percentage 45.62% of the total cost of 3, 30.91% respectively. If you say that in the case of poor sales, cost of sales fell less still to understand, then listed companies should be under the administrative expenses and financial costs big effort, especially administrative costs, easier to control than the financial costs and management costs The total cost of the three highest proportion of administrative expenses dropped significantly easier to deliver results for the operating profit of listed companies.
Most enterprises trap loss situation
24 steel companies in 2015 mid-year report total net loss of 5.006 billion yuan (compared with a profit of 1.455 billion yuan), down 444.05 percent.
24 listed steel companies an average loss of 209 million yuan net profit, total net profit of 15 listed companies reported varying degrees during loss (an increase of five), a total loss of 9.77 billion yuan, the loss reached 62.50 percent, up expanded 20.83 percent. 15 loss listed companies, eight increased losses, six from surplus to deficit, a reduction in losses. 9 profit companies, only a slight increase in net profit of Wuhan Iron and Steel shares, Shandong Iron and Steel to profitability, Hebei Iron and Steel, Benxi Iron and Steel plate, Xinxing Ductile Iron Pipes, TISCO, Angang, Baosteel, Nanganggufen are net down. 24 steel companies in 2015 reported an average net profit was -1.05%, down 1.29 percentage points compared with the same period in 2008 decreased by 7.86 percentage points.
Net investment income increased year by year
24 steel companies in 2015 mid-year report net investment income totaled 1.751 billion yuan, an increase of 43.36%. Nearly three years, steel companies net investment income showed growth trends, and the growth rate year after year.
In recent years, annual growth 24 listed steel company investment income, the reason is not so much a listed company pay more attention to the capital, as it is the response to each company in order to cope with the decline in corporate profits Situation taken. In recent years, net investment income accounted for the proportion of operating profit also showed an increasing trend (see table below).
2008, reported that in 2013 to 2015 in 24 listed steel companies reported net investment income accounted for the proportion of operating profit situation
During the mid-year report 2008, 24 listed steel companies the sum of net investment income and total operating profits accounted for only 1.81%, but rose sharply in 2014 to 72.95 percent over the same period, investment income has become the company to make up for the decline in operating profit pillar . 2015, due to the 24 listed steel companies operating profit amounted to negative, the index meaningless, but by positive operating profit for analysis of seven companies found Xinxing Ductile Iron Pipes, Angang Steel, Shandong Iron and Steel’s net investment the proportion of total operating income more than 100% profit, net investment income exceeded its operating profit; Hebei Iron and Steel, Baosteel, Wuhan Steel shares, net investment income Bengang proportion of total operating profits were 25.00% less investment income of these operating profit of listed companies to make a contribution.
2013 ~ 2015, 24 listed companies operating profit showed a downward trend, while net investment income over the same period showed year on year trend of rapid growth. Above that, three years a loss situation listed steel companies have not been improved, but to a more serious direction.
Operating income was five times over the same period in 2008
During the mid-year report 2015, 24 listed steel companies operating income totaled 1.424 billion yuan, down 23.27 percent. Nearly three years, the steel companies to maintain a high level of operating income in 2015, the report period, operating income was 5.32 times over the same period in 2008.
In recent years, operating income in order to reduce steel companies to make a greater contribution to the net loss. According to statistics, during the mid-year report 2015, operating income if removed, would have two steel companies (Shandong Iron and Steel, Nanjing Steel) net loss situation occurs, will increase 14 listed companies (SGIS, Valin Steel, Shougang shares, Sha Steel shares, three steel Min light, Baotou Steel shares, Lingganggufen, Jiuquan Hongxing, Anyang Iron and Steel, Bayi Iron & Steel, the new steel shares, Maanshan Iron & Steel, Liuzhou Iron and Steel shares, Chongqing Iron & Steel) Net profit Availability losses. Operating income is not a sustainable revenue, as a listed company can not rely on long-term survival of revenue, while operating income rose current year also it shows that the overall industry downturn, more and more steel companies began rely on this to ensure that net income instability of enterprises, from the side also confirmed that the current plight of listed steel companies are located.
Through the partial economic indicators in 2008 and nearly three years 24 domestic steel companies in the report summary analysis, are the following conclusions:
First, during the mid-year report 2015 is nearly three years listed steel companies the worst economic year. Due to the reduction of external favorable factors listed steel companies face increasing overall loss, the entire steel sector listed companies close more dangerous edges.
Second, through years of hard work, combined with the upstream raw material prices into a downward spiral, steel companies have made certain achievements in operating cost control. However, in the case of no large-scale technical innovation, manufacturing costs decline there will always be limits. 24 listed steel companies during the cost, especially on the control and management costs should also make great efforts to compress.
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