** on behalf of He Daping: steel prices to buy financial products is helpless

New Steel shares invested 1.6 billion, Yongxing Special Steel invested 300 million ... ... After many steel companies choose to use idle funds to buy bank financial products to hedge, the country's largest private steel company Shagang Group recently announced that the board of directors passed a resolution agreeing to Under the premise of ensuring the production and operation of funds and the safety of funds, idle funds of no more than 800 million yuan are used to purchase wealth management products at their choice.

“This is no way. The profit of the main business has been reduced. We have made a fuss about non-steel investment, finance, logistics, etc.” During the period of ****, the representative of the whole country, Jiangsu Shagang Group Huaigang Special Steel Co., Ltd. ( Hereinafter referred to as "Huaigang") He Daping, vice chairman of the board, said in an exclusive interview with Xinhua News Reporter that the non-steel profits of some large iron and steel enterprises have surpassed the main business, and Shagang Group expects the non-steel profit and main industry profit after 3-5 years. Will be flush.

According to announcements of major steel listed companies, Angang Steel, Taigang Stainless, and Jiuquan Hongxing were involved in billions of losses in advance, and Xining Special Steel, Nanjing Steel and Liugang Steel were successively downgraded.

It is worth mentioning that, in the midst of the stricken misfortune of the steel companies, Shagang Group has risen in a contrarian direction, with a profit of 1.897 billion yuan in 2015. It ranks second among the nation's steel companies.

“It used to be said that steel is the price of cabbage, and now it is 1.9 yuan per pound of rebar, 3 pounds of Chinese cabbage, and even the price of steel and cabbage is not available. The price exceeds the supply price will not go up. Now the environment is not good, but we can withstand it. "He Daping said that because Huaigang's main special steel product structure is relatively reasonable, it maintained a break-even balance last year, and its export volume increased by about 50% on the basis of the previous year."

He Daping said that Huaigang has benefited from the internal management of enterprises that reduce costs and improve efficiency. "Last year, we all increased the efficiency of our staff, and the indicators were divided into various parts, branches and employees. Each person has a technical indicator, and there are more than 190 research projects."

Regarding the issue of resettlement for steel production enterprises that are widely concerned by the outside world, He Daping stated that Huaigang has been in operation for 3-4 years, and that it has been more aggressive last year and has transferred more than 200 people. “We did not push them to the community, but instead placed them within the company, such as security and outside line maintenance that were originally contracted to social organizations. The original number of posts was reduced to 3, and the efficiency was improved. The wages of on-the-job staff also increased.”

He Daping also pointed out that for exit mergers and reorganizations, policy support should be introduced so as to avoid dragging large companies. For example, whether the debt-to-equity swap model can be considered, the state will acquire shares in advance, and other merger companies will repurchase after 5 to 10 years of profit.

In the afternoon of March 5, the Central Government and the Vice Premier of the State Council, during their participation in the discussion and discussion of the government work report of the Shanxi delegation, revealed that the elimination of excess production capacity supporting documents was basically formed.

“Including special award funds for structural adjustment of industrial enterprises, including financial and taxation departments’ measures supported from the fiscal and tax perspectives, the Ministry of Human Resources and the Ministry of Human Resources and Natural Resources also made an opinion to resolve the resettlement of the steel and coal surplus production workers.” The eight supporting documents from the Ministry of Land and Resources, the Ministry of Environmental Protection, the People's Bank of China, the China Banking Regulatory Commission, the General Administration of Quality Supervision, Inspection and Quarantine and the State Administration of Work Safety will soon be issued, which is a rare opportunity,” said **.