On January 4, the first day of the opening of a shares, the steel sector welcomed the “good start”, and the index closed up 1.84% to 7968.43, Pangang Group Vanadium Titanium & Resources Co.Ltd(000629) , Zhejiang Kingland Pipeline And Technologies Co.Ltd(002443) limit, Qingdao East Steel Tower Stock Co.Ltd(002545) , Zhejiang Yongjin Metal Technology Co.Ltd(603995) rose by more than 5%.
As A-Shares entered the first trading day of 2022, Xinjiang’s largest iron and steel enterprise Xinjiang Ba Yi Iron & Steel Co.Ltd(600581) also “quit the old and welcome the new”. On the occasion of the new year, the senior management changed their blood. On December 31, 2021, eight senior executives of the company resigned. As of the closing on January 4, Xinjiang Ba Yi Iron & Steel Co.Ltd(600581) reported 6.29 yuan / share, up 1.29%, with a total market value of 9.642 billion yuan.
8 executives resigned
On December 31, 2021, Xinjiang Ba Yi Iron & Steel Co.Ltd(600581) announced that Shen Dongxin, chairman of the board, submitted his resignation due to job change and resigned as chairman of the board, and the original position of director remained unchanged; Directors Zhang Zhigang and Jiang Zhenfeng submitted their resignations due to job changes and resigned as directors.
According to public information, Shen Dongxin, born in 1963, has a graduate degree. He once served as the chief of the finance section of the rolling mill of Bagang, the assistant to the director of the planning and Finance Department of Bagang Co., Ltd., the deputy director of the Securities Management Office of Bagang group, Xinjiang Ba Yi Iron & Steel Co.Ltd(600581) Secretary of the board of directors, manager of the securities investment department, manager of the finance department, etc.
Since 2003, Shen Dongxin, then 40, has served as the chairman of Xinjiang Ba Yi Iron & Steel Co.Ltd(600581) for 18 years. During his tenure, he promoted Xinjiang Ba Yi Iron & Steel Co.Ltd(600581) restructuring and became the holding company of Baosteel Group. In early 2007, Baosteel Group signed an agreement with the government of Xinjiang Uygur Autonomous Region. The former increased its capital by 3 billion yuan to restructure Xinjiang Ba Yi Iron & Steel Co.Ltd(600581) .
Shen Dongxin’s successor is Wu Bin with Baosteel background. On December 30, 2021, Xinjiang Ba Yi Iron & Steel Co.Ltd(600581) held the 17th meeting of the seventh board of directors, and elected Wu Bin as the chairman, Ke kind and LAN Yin as the candidates for directors. It is disclosed that Wu Bin, born in 1970, once served as general manager of Baoshan Iron & Steel Co.Ltd(600019) product development department, Baoshan Iron & Steel Co.Ltd(600019) director of silicon steel department and manager of follow-up project team of oriented silicon steel, Baoshan Iron & Steel Co.Ltd(600019) assistant to general manager and general manager of marketing center, director, general manager and Deputy Secretary of Party committee of Bagang company.
According to another announcement on December 31, 2021, Zhang Chunhui applied to resign as general manager, Liu Yiping, Wang Bing and Cai Jianxin applied to resign as deputy general manager, and Tang Nian applied to resign as chief engineer. The reasons for the resignation of 5 people were all work reasons. The general manager is replaced by LAN Yin, who once served as party secretary of Bagang company. The vacant positions of deputy general manager and chief engineer have not been announced yet.
The reporter noted that Liu Yiping, Wang Bing, Cai Jianxin and Tang Nian were appointed by Xinjiang Ba Yi Iron & Steel Co.Ltd(600581) on July 20, 2021, and they resigned one after another in less than half a year.
Why did the above eight executives resign? Xinjiang Ba Yi Iron & Steel Co.Ltd(600581) in an interview with the reporter of the international finance news, relevant people said that this is due to the requirements of the restructuring of central enterprises. The company has been promoting this matter. This time, it has been extended to the senior level, which is more conducive to the development of listed companies.
nearly 2.2 billion acquisition of assets of controlling shareholders
The acquisition of Xinjiang Ba Yi Iron & Steel Co.Ltd(600581) nearly 2.2 billion yuan has also come to an end.
On December 22, 2021, Xinjiang Ba Yi Iron & Steel Co.Ltd(600581) said that it had completed the corresponding equity industrial and commercial change registration procedures. So far, the company holds 100% of the shares of Xinjiang Bagang metal products Co., Ltd. (hereinafter referred to as “metal products”) and Xinjiang coking coal (Group) Co., Ltd. (hereinafter referred to as “coking coal group”).
According to the announcement on November 16, 2021, Xinjiang Ba Yi Iron & Steel Co.Ltd(600581) plans to purchase 100% equity of metal products and coking coal group held by Baosteel Group Xinjiang Xinjiang Ba Yi Iron & Steel Co.Ltd(600581) Co., Ltd. (hereinafter referred to as “Bagang”). As Bagang is the controlling shareholder of Xinjiang Ba Yi Iron & Steel Co.Ltd(600581) , this transaction constitutes a related party transaction.
Xinjiang Ba Yi Iron & Steel Co.Ltd(600581) said that this transaction can extend the industrial chain of listed companies, maximize the utilization value of resources in Xinjiang, cover the upstream and downstream industrial chain of steel manufacturing, improve the breadth and efficiency of regional resource allocation, strengthen and expand listed companies, enhance profitability and reduce related party transactions. And lay the foundation for the improvement of the company’s operating performance, which is of great significance to promote the long-term development of the company.
It should be noted that Xinjiang Ba Yi Iron & Steel Co.Ltd(600581) pays the transaction price of RMB 2.179 billion in cash, 90% within 10 working days after the agreement is signed and takes effect, and the remaining 10% within 10 working days after the industrial and commercial change of the subject asset is completed. However, by the end of the third quarter of 2021, Xinjiang Ba Yi Iron & Steel Co.Ltd(600581) monetary funds on account were 3.464 billion yuan, short-term borrowings were as high as 5.708 billion yuan, and notes and accounts payable were 9.201 billion yuan. The pressure on Xinjiang Ba Yi Iron & Steel Co.Ltd(600581) to pay in cash should not be underestimated.
In addition, the underlying high premium has also been questioned by the market. As of May 31, 2021, the audited net assets of coking coal group were 310 million yuan, the assessed value was 1.58 billion yuan, and the value-added rate reached 410.44%.
debt remains high
Benefiting from the simultaneous rise of steel volume and price, in the first three quarters of 2021, Xinjiang Ba Yi Iron & Steel Co.Ltd(600581) achieved a revenue of 23.814 billion yuan, a year-on-year increase of 51.98%, and the net profit attributable to the parent company was 2.229 billion yuan, a year-on-year increase of 636.74%.
However, from the extended time line, subject to the periodicity of the steel industry, Xinjiang Ba Yi Iron & Steel Co.Ltd(600581) performance fluctuates frequently. According to the financial report data, in 2014 and 2015, Xinjiang Ba Yi Iron & Steel Co.Ltd(600581) net profit attributable to parent decreased by 6196.46% and 23.29% respectively, increased by 101.48% and 3048.25% respectively in the following two years, decreased by 40.03% and 84.14% again in 2018 and 2019, and increased by 184.7% in 2020.
Under the background of double carbon, the iron and steel industry with high emission and high energy consumption has become an important play. At present, it is facing the challenge of transformation. The aforementioned Xinjiang Ba Yi Iron & Steel Co.Ltd(600581) person told the international finance news, “the company has been studying how to reduce carbon emissions. The hydrogen rich carbon recycling blast furnace is also an effort made by the company in this regard, striving to ensure the output and meet the national double carbon requirements.” It is reported that Xinjiang Ba Yi Iron & Steel Co.Ltd(600581) hydrogen rich carbon circulating blast furnace has realized the recycling of decarburized gas for the first time in the world. The oxygen content of blast furnace has achieved 50% oxygen rich smelting, and the carbon emission reduction of blast furnace is more than 5%.
The high debt ratio is a persistent disease of Xinjiang Ba Yi Iron & Steel Co.Ltd(600581) . According to the financial report data, from 2012 to 2020, Xinjiang Ba Yi Iron & Steel Co.Ltd(600581) asset liability ratio has been maintained at more than 78%, and 75.13% in the first three quarters of 2021.
(International Finance News)
