Cao Huiquan first response to asset restructuring Valin Iron & Steel
"In the past few years, the steel industry to achieve the expansion and adjustment of development, such as Valin Iron and Steel enterprise asset-liability ratio is relatively high, facing more pressure. The main purpose of the reorganization of assets is to fight for the profitability of listed companies have during a relatively large improvement, but also create better conditions for the reform and restructuring of the main steel business. "July 29, the China steel industry Association executive director of the four-fifth (enlarged) meeting, Valin Iron and Galvalume steel coil
Group chairman and party secretary Cao Huiquan in the "China metallurgical News" China steel News network reporter an exclusive interview, the first response to the matters related to asset restructuring Valin.
Asset restructuring is progressing well
The evening of July 17, Valin Iron & Steel announced the "Hunan Valin Iron & Steel Co., Ltd. a major asset replacement and to issue shares to buy assets and raise matching funds and Related Transaction Plan." After following the completion of the reorganization plan disclosure, the scope of business of listed companies will cover the securities, trust, insurance and other financial services and energy generation business, a listed company of financial services and energy generation double main industry. Valin Iron & Steel to implement "set out the steel assets into financial assets" approach is based on what kind of strategic decision?
Cao Huiquan to "China Metallurgical News" China Steel News Network reporter said that Hunan Valin Iron and Steel reorganization is to implement the central "three to fill a drop a" supply-side structural reforms to promote a major move. The steel industry is the key to the production capacity, while also facing down costs to inventory and a series of tasks. In this context, although the positioning Valin Iron & Steel is a high-end, but this one Valin main business profitability is not very good, in the capital market financing capacity is limited. In particular, the industry production capacity to the background, this situation is likely to continue for several years. Valin Iron & Steel one hand to concentrate on reform of the main steel business, including raising labor productivity, improve internal efficiency; on the other hand will further promote the adjustment of product structure, innovative work. "Do a good job also requires a favorable environment and conditions, a very important point is that the entire enterprise financing environment and pay the cost of reform need to have some improvement." He said, which is the reorganization of assets of Valin Iron & Steel purpose.
Progress on asset restructuring, Cao Huiquan said: "Hunan Provincial Committee and the provincial government for the reorganization of the issue given a very strong impetus and support from the current situation, the situation is better than smooth reorganization Up to now, the company's work. productivity increases faster structural adjustment also seize the time to do things, reform of the governance working group proceeded relatively smoothly, it is advantageous to promote the restructuring. "
"After the reorganization of listed companies, the profitability of financial assets and energy generation assets are relatively stable, operation is relatively good, these two greatly improved the profitability of listed companies on the market, investors are good. At the same time, earnings after the improvement of the financing of listed companies will have a positive impact. it is after this time we expect restructuring and expected. "Cao Huiquan said.
Development is the core of the team
For Valin Iron & Steel, the "home of the steel assets into financial assets" is both bold attempt, is "ripe." Over the years, Valin has been to build and improve the "5 + 1" multi-industry joint development pattern in the development of multi-industry has accumulated some experience.
"Sales revenue growth and increase the size of the main steel business are touched 'ceiling', subject to certain restrictions, the development of enterprises to survive, must find new sources of revenue and profit growth. Our years in finance, logistics, energy environmental protection, as well as in the upstream resources, iron and steel deep processing and strategic emerging industries upstream and downstream is a series of layout, a few years, there are still some industries grow relatively fast. this is because the industry has just started, rapid growth, partly because these industries have a strong team motivated. "Cao Huiquan to" China metallurgical News "China steel News network reporter said.
Cao Huiquan believes Valin developed slightly better industry depends more on their team. "It was a multi-industry and steel-related, but after all, every other industry Gehangrugeshan, the main steel business outside the face of competition and different laws. So, I think the core issue is the selection of a good team, with their common explore strategies and the development of ideas. "he said," we are also aware, in these areas can be a market-based mechanism to encourage good these teams, so they put the development of enterprises real as their own business career to do. now we are also exploring mixed ownership in state-owned enterprise reform in how to fall, to be honest is also not a good template to cover everything, so it can only be a proposed, a business a policy. "
Cao Huiquan noted that reform is the most difficult place to find a right direction and a good match for their team and let it try. "We are now at the level of corporate governance is to implement the terms of reference of the Board of Directors, who will go to the formation of a better management team now Group through the introduction of a large number of outside directors, the quality of decision-making board of directors has improved significantly, resources and access to information from the market and the understanding the industry also have made great progress. Hunan Valin as a pilot unit to a reform in the management of cadres above give us a great privilege, but also allows us to do many attempts, this is a good environment ."He said.
An austere life in the second half anyway
In the first half of this year, the steel industry has improved operating efficiency. For the second half the situation, Cao Huiquan to "China Metallurgical News" China Steel News Network, told reporters that, in general, the competitive landscape of the entire industry has not fundamentally changed, although they have the capacity to achieve a certain effect, but immediately reflected to benefit industry improved up is not reality, it will take some time, steel companies have to do a good job of going to tighten their belts. For Valin is concerned, it is necessary to reduce costs. The second is to increase labor productivity through reform, it is to further reduce labor costs. The third is to continue to increase structural adjustment efforts. "Now, there are some high-end market demand continues to grow. Some changes in the structure of demand in the face, who can better adapt, who can seize the opportunity to develop." He said.
For the steel industry mergers and acquisitions, Cao Huiquan that a higher degree of concentration of the industry's healthy development is certainly beneficial. Western steel industry from the rapid growth of the region beyond the arc after, into the contraction phase, industry concentration is rapidly increased, and basically formed the pattern of oligopolistic competition in the market, but also other sectors of the domestic competition formed after mature pattern. But the case of China, this pattern is to be formed in a very short period of time, some of the macro policies need to be supported. "Generally speaking, I support the appropriate pace of mergers and acquisitions accelerated. However, there is still no Valin merger and reorganization plan, or focus on doing their own thing." He said.
From the point of view of the first half, the steel industry financing phenomenon without any relief, even signs of tightening. "The biggest pressure facing the steel industry, I think it is very high financing costs, also led to alternative financing tools business is not much. In the background is already facing deflation, and if the interests of the financial allocation between entities can not be a reasonable adjustment , the steel industry may face more pressure. I hope that in between the financial and real, especially financial support for the above entities, the Government can come up with some decisive and effective policy out. "Cao Huiquan finally said.
Valin main business will be transformed into "finance + for Energy"
The evening of July 17, Valin Iron & Steel announced the "Hunan Valin Iron & Steel Co., Ltd. a major asset replacement and to issue shares to buy assets and raise matching funds and Related Transaction Plan." After the disclosure in accordance with the completion of the reorganization plan, Valin Iron & Steel will directly and indirectly hold 100% stake in Fortune Securities, 96% stake in Hunan Trust, Lucky Life 29.19% stake in Xiangtan 100% stake in Valin energy-saving 100% stake in its business It will cover securities, trust, insurance and other financial services and energy generation business, a listed company of financial services and energy generation double main industry.
According to plan, Valin Iron & Steel will be in addition to all the assets and liabilities of Xiangtan hold 100% stake in energy saving and Valin Group Valin 100% equity, 18.92% stake in Fortune Securities, a wholly owned subsidiary of Valin Group Dietze Year equivalent portion Fortune Securities investment held 14.42% stake in the replacement, the difference between the part of the assets to be placed under-price, pay a cash adjustment to the listed company from the Valin Group; financial information to financial holding non-public offering of shares to buy Caixin investment 100% stake (held wealth Finance investment Securities 62.89% stake in Hunan Trust 96.00% stake in lucky Life 29.19% stake), Shenzhen moist to non-public offering of shares to buy Fortune Securities held 3.77% of its equity; to Hualing Holdings issue shares to raise matching funds, raising the total amount of matching funds not more than 8.5 billion yuan. This restructuring, the financial information Valin Iron & Steel Holding, the total number of issued shares of Shenzhen moist approximately 236,564.68 million shares, the number of Hualing Holdings issued shares to no more than 234,159.78 million shares, issue price are 3.63 yuan / share.
The restructuring of Hunan Valin Iron & Steel is the provincial government to implement the central major strategic decisions about the supply-side structural reforms and state-owned enterprise reform requirements. Through the strategic reorganization of state-owned assets for the iron and steel enterprises to production, deleveraging, reduce costs and create conditions and padded short board financial industry. Statistics show that Valin Iron & Steel 2015 net profit of the parent company owned by -29.59 billion in January 2016 to June net profit of the parent company is expected to return a loss of 860 million yuan to 9.6 billion yuan. In accordance with the restructuring plan, Valin Iron & Steel by this transaction value of 12.352 billion yuan estimated injection of quality assets and financial assets of 1.296 billion yuan of energy generation and supporting the financing does not exceed 85 billion yuan. Development of the securities, trust, insurance and other financial services to a very high degree of dependence of capital, the raised funds to be used to supplement Fortune Securities, Hunan auspicious life and trust capital, to enhance the performance of the company, to build Hunan province-based, radiation National financial holding platform foundation.
In addition to the assets to be placed auspicious time is short life due to the establishment of profit not to enter the remaining assets with strong profitability, asset securities, trust Hunan Valin saving 2015 profit of 1.24 billion yuan, respectively, 5.56 billion yuan and 1.21 billion, the listed company is expected to retain assets Xiangtan saving annual profit of 1 billion yuan. Some analysts believe that the financial industry is currently in a period of development, based on experience to judge, in the near future, may replace the name Valin Iron & Steel, and to take further capital operation, optimize business structure, improve the quality of high-quality assets, capital and industry to play synergies, the future worth looking forward to.
Valin Iron & Steel chairman Cao Huiquan, said the reorganization of assets of Valin Iron & Steel is bound to bring a lot of opportunities, will bring new challenges, but are confident that through their own efforts, with the capital market and other forces, to seize the financial, energy power industry development opportunities, to fight the Hunan Valin Iron & steel exemplary listing of state-owned capital operation platform, continued to improve operating performance, to better protect the interests of small investors.
Valin independent director, China Research Center of Metallurgical Industry Economic Development main Renshi Hong Wei believes that the implementation of Valin Iron & Steel, "set out the steel assets into financial assets" approach to Valin Steel Industry Development benefits: First, the steel assets set out after the group is conducive to improve the management relations, improve management efficiency; second, after the completion of this restructuring is expected Valin direct holding market is expected to continue to enhance the value of assets obvious appreciation, debt relief in favor of lowering the negative, but also conducive to Valin to achieve industrial and financial capital of the combination.
At present, Valin Group is in accordance with the "three to make up a down a" supply-side reform requirements, and vigorously promote the deepening of reform and the quality and efficiency of the work of the steel business: First, completely stripped the "three for one industry" and other corporate social functions , deepen the reform of the three systems, the implementation of attrition diversion; the second is the project system as the starting point, carry out the cost efficiency and product structure adjustment, the advantages of steel production capacity to adhere to the "doing fine and stronger, leading regional" strategy to consolidate and expand in competitive advantage automobile, shipbuilding, machinery manufacturing, oil and gas, bridges, energy, steel and other industry segments, the steel plate efforts to fight the region's most competitive modern iron and steel enterprises; Third, according to the "1 + 5" development strategy, increase investment in multi-industry sector, so that the income share of the multi-industry rapidly increased to over 50%.