The Coldness of the Iron and Steel Industry Hasn’t Eliminate: The West King Group's Profitability Has Fluctuated
2019-04-27 13:04:50
Xiwang Group mainly produces fructose, food grade and medicinal grade glucose, fructose syrup, sodium gluconate, maltodextrin, corn oil, and special steel. Leading products enter the international market, and the largest scale of production is glucose, corn oil, anhydrous glucose and maltodextrin.
Xiwang Group Co., Ltd. (hereinafter referred to as "Xiwang Group") will issue the 2014 first-term medium-term notes on the 12th. Dagong International's rating is still AA. However, it is reported that the profitability of Xiwang Group has fluctuate, and the return on total assets has hit a new low in recent years.
Since last year, the chill of the steel industry has not been able to disperse. The West King Group, whose main business is corn oil and steel, has also been affected. Since 2010, Xiwang Group's annual revenue from iron and steel business accounted for 59.06%, 61.45% and 49.85% of its main business income, respectively, and 39.81% in the first half of last year. During the same period, the total return on assets of Xiwang Group was 4.51%, 5.50%, 1.89% and 0.66%, respectively.
“In 2013, under the pressure of environmental protection policy suppression, backward production capacity elimination, high raw material costs, and low downstream demand, steel companies survived very hard. The West King is a good choice for corn deep processing as an industry development direction. "Hang Hangsheng, president of the business club's steel branch, told the reporter.
Fluctuations in profitability The prospectus revealed that there are three main reasons for the instability of Xiwang Group's profitability: First, since 2010, the increase in the price of raw materials such as corn and the increase in labor costs have led to an increase in operating costs; Second, due to Xiwang Group The major projects in 2010 are currently under construction, and economic benefits have not yet appeared. Third, since 2012, affected by the decline in the overall profitability of the steel industry, the Group’s profitability has declined and it is subject to fluctuations in profitability.
The data show that in 2013, the national large and medium-sized iron and steel enterprises realized sales revenue of 3,687.56 billion yuan, an increase of 3.89% year-on-year; and total profit of 22,886 million yuan, a year-on-year turnaround; the cumulative loss was 16 households, a year-on-year decrease of 10 households with a loss of 18.6%. The cumulative loss amounted to 11.825 billion yuan, a year-on-year reduction of 63.91%; the sales margin was 0.62%, an increase of 0.66 percentage points year-on-year.
Zhu Hongbing, an analyst at Zhuo Chuang Information and Steel Industry, believes that although the profit margin of the steel industry has rebounded quietly in 2013, it is declining gradually and it is still the second lowest in recent years.
“According to the data performance in recent years, the profit rate of the iron and steel industry dropped from a peak of 12.51% in 2001 to 0.04% in 2012. It was slightly reversed in 2013, but it still has not come out of the quagmire and is expected to be integrated in the industry. In the background, 2014 will continue to improve, and opportunities and risks will coexist.†Bi Hongbing said.
As of the end of December 2013, the total guarantee of Xiwang Group was 5.52 billion yuan, all of which were external guarantees. As the total amount of external guarantees is relatively large, Xiwang Group may face certain compensatory risks once the guarantor has experienced deterioration in its production and operation, overdue or complaints.
At the same time, as the scale of production and operation of the company increases year by year, short-term interest-bearing debt grows rapidly, and there is a risk that short-term debt repayment pressure will increase. Since 2010, the company's annual total profit is 700 million yuan, 1.27 billion yuan and 588 million yuan respectively.
Continue to diversify development He Hangsheng predicts that the iron and steel industry will still be hard to change the profitability situation in 2014, and the development of the non-steel industry may be a major outlet for the transformation of steel companies. “Now the overall steel industry is not booming. The future special steel is still a good direction for development, but we can't expect it to bring rapid returns,†he said.
In fact, the diversified development of Xiwang Group has been ongoing. At present, the balance of medium-term notes to be repaid is 3.3 billion yuan, and the balance of short-term financing bills to be repaid is 2.3 billion yuan. The 460 million yuan raised this time was used to supplement the working capital of its subsidiary Xiwang Pharmaceutical Co., Ltd. to meet the liquidity requirements in its daily operations.
In addition to corn deep processing and steel, Xiwang Group's subsidiaries also involved in real estate.
In December 2012, Xiwang Sugar purchased 100% equity of Jianxuan Investment Co., Ltd. from Xiwang Investment Co., Ltd. for a consideration of 308 million yuan in the acceptance of the bill. After the acquisition was completed, Xiwang Sugar increased four property projects, including three residential projects and the Intaishan Maize Cultural Project.
In May 2013, Fraser Co., Ltd., a wholly-owned subsidiary of Xiwang Sugar, entered into a framework agreement with Jimo City on the cooperative development of multi-purpose property development projects, including the railway station plaza and commercial, residential and office areas that are major development targets. .
Xiwang Group Co., Ltd. (hereinafter referred to as "Xiwang Group") will issue the 2014 first-term medium-term notes on the 12th. Dagong International's rating is still AA. However, it is reported that the profitability of Xiwang Group has fluctuate, and the return on total assets has hit a new low in recent years.
Since last year, the chill of the steel industry has not been able to disperse. The West King Group, whose main business is corn oil and steel, has also been affected. Since 2010, Xiwang Group's annual revenue from iron and steel business accounted for 59.06%, 61.45% and 49.85% of its main business income, respectively, and 39.81% in the first half of last year. During the same period, the total return on assets of Xiwang Group was 4.51%, 5.50%, 1.89% and 0.66%, respectively.
“In 2013, under the pressure of environmental protection policy suppression, backward production capacity elimination, high raw material costs, and low downstream demand, steel companies survived very hard. The West King is a good choice for corn deep processing as an industry development direction. "Hang Hangsheng, president of the business club's steel branch, told the reporter.
Fluctuations in profitability The prospectus revealed that there are three main reasons for the instability of Xiwang Group's profitability: First, since 2010, the increase in the price of raw materials such as corn and the increase in labor costs have led to an increase in operating costs; Second, due to Xiwang Group The major projects in 2010 are currently under construction, and economic benefits have not yet appeared. Third, since 2012, affected by the decline in the overall profitability of the steel industry, the Group’s profitability has declined and it is subject to fluctuations in profitability.
The data show that in 2013, the national large and medium-sized iron and steel enterprises realized sales revenue of 3,687.56 billion yuan, an increase of 3.89% year-on-year; and total profit of 22,886 million yuan, a year-on-year turnaround; the cumulative loss was 16 households, a year-on-year decrease of 10 households with a loss of 18.6%. The cumulative loss amounted to 11.825 billion yuan, a year-on-year reduction of 63.91%; the sales margin was 0.62%, an increase of 0.66 percentage points year-on-year.
Zhu Hongbing, an analyst at Zhuo Chuang Information and Steel Industry, believes that although the profit margin of the steel industry has rebounded quietly in 2013, it is declining gradually and it is still the second lowest in recent years.
“According to the data performance in recent years, the profit rate of the iron and steel industry dropped from a peak of 12.51% in 2001 to 0.04% in 2012. It was slightly reversed in 2013, but it still has not come out of the quagmire and is expected to be integrated in the industry. In the background, 2014 will continue to improve, and opportunities and risks will coexist.†Bi Hongbing said.
As of the end of December 2013, the total guarantee of Xiwang Group was 5.52 billion yuan, all of which were external guarantees. As the total amount of external guarantees is relatively large, Xiwang Group may face certain compensatory risks once the guarantor has experienced deterioration in its production and operation, overdue or complaints.
At the same time, as the scale of production and operation of the company increases year by year, short-term interest-bearing debt grows rapidly, and there is a risk that short-term debt repayment pressure will increase. Since 2010, the company's annual total profit is 700 million yuan, 1.27 billion yuan and 588 million yuan respectively.
Continue to diversify development He Hangsheng predicts that the iron and steel industry will still be hard to change the profitability situation in 2014, and the development of the non-steel industry may be a major outlet for the transformation of steel companies. “Now the overall steel industry is not booming. The future special steel is still a good direction for development, but we can't expect it to bring rapid returns,†he said.
In fact, the diversified development of Xiwang Group has been ongoing. At present, the balance of medium-term notes to be repaid is 3.3 billion yuan, and the balance of short-term financing bills to be repaid is 2.3 billion yuan. The 460 million yuan raised this time was used to supplement the working capital of its subsidiary Xiwang Pharmaceutical Co., Ltd. to meet the liquidity requirements in its daily operations.
In addition to corn deep processing and steel, Xiwang Group's subsidiaries also involved in real estate.
In December 2012, Xiwang Sugar purchased 100% equity of Jianxuan Investment Co., Ltd. from Xiwang Investment Co., Ltd. for a consideration of 308 million yuan in the acceptance of the bill. After the acquisition was completed, Xiwang Sugar increased four property projects, including three residential projects and the Intaishan Maize Cultural Project.
In May 2013, Fraser Co., Ltd., a wholly-owned subsidiary of Xiwang Sugar, entered into a framework agreement with Jimo City on the cooperative development of multi-purpose property development projects, including the railway station plaza and commercial, residential and office areas that are major development targets. .
Features: The machine tool mold is integrated, and the base, column and beam are optimized and strengthened to improve the overall rigidity of the machine tool.
Materials: stainless steel, copper, aluminum, carbon steel, etc.
Applicable industries: molds, hardware, medical equipment, electronic products
Product use: mold, metal electrode, metal parts processing
CNC Roller Engraving Machine,CNC Roller Engraving And Milling Machine,Steel Roller Laser Engraving Machine,Engraving Rubber Rollers Machine
Jiangsu Changzhou Jinghua Numerical Control Equipment Co.,Ltd. , http://www.jkengraving.com