In order to optimize the layout of the northern coastal areas, Taiyuan Iron and Steel intends to purchase production capacity from related parties.
On June 25, Taiyuan Iron and Steel (000825.SZ) announced that the company plans to sign the "Steelmaking Capacity Replacement Index Transfer Agreement" with Wuhan Iron and Steel Co., Ltd., Xinhai Industry, and Xinhai New Materials. The steel production capacity will be transferred to Xinhai Industry; it is planned to sign the "Steelmaking Capacity Replacement Index Transfer Agreement" with Baosteel Special Steel, Xinhai Industry and Xinhai New Materials, and Baosteel Special Steel will transfer 140,000 tons of steelmaking capacity to Xinhai Industry.
According to the announcement, the total price (including tax) of the above two steel-making capacity purchased by Xinhai Industrial, a subsidiary of Taiyuan Stainless Steel, is about 771 million yuan.
It is worth noting that in 2021, Taiyuan Iron and Steel Stainless will have a significant "deleveraging" effect, and its solvency will be further improved. The asset-liability ratio will be reduced by 3.60% compared with the previous year, financial expenses will be reduced by 47.89% compared with the previous year, and the total amount of interest-bearing liabilities will be higher than that of the previous year. Year-on-year decrease of 41.83%.
Optimize the layout of the northern coast
On June 25, TISCO Stainless announced that the company intends to cooperate with Wuhan Iron and Steel Co., Ltd. (“Wuhan Iron and Steel Co., Ltd.”), Shandong Xinhai Industrial Co., Ltd. (referred to as "Xinhai New Materials") signed the "Steelmaking Capacity Replacement Index Transfer Agreement", Wuhan Iron and Steel Co., Ltd. will transfer 1.02 million tons of steelmaking capacity to Xinhai Industry; ), Xinhai Industry and Xinhai New Materials signed the "Steelmaking Capacity Replacement Index Transfer Agreement", Baosteel Special Steel transferred 140,000 tons of steelmaking capacity to Xinhai Industry.
According to the appraisal value of a third-party appraisal agency, the total price (tax included) of the above-mentioned two steelmaking capacities purchased by Xinhai Industrial, a subsidiary of TISCO Stainless, totaled RMB 771 million.
At present, TISCO Stainless directly holds 51% of the shares of Xinhai Industry, which is the company's holding subsidiary; China Baowu Iron and Steel Group Co., Ltd. (referred to as "China Baowu") indirectly holds 62.91% of the shares of the company and is the actual controller of the company. ; China Baowu holds 100% equity of Wuhan Iron and Steel Co., Ltd. through Baoshan Iron and Steel Co., Ltd. and is the actual controller of Wuhan Iron and Steel Co., Ltd.; China Baowu directly holds 100% of the equity of Baosteel Special Steel and is the actual controller of Baosteel Special Steel.Therefore, this transaction constitutes a connected transaction.
Taiyuan Iron and Steel Co., Ltd. introduced that in view of the fact that Wuhan Iron and Steel Co., Ltd. and Baosteel Special Steel's affiliated company Taiyuan Iron and Steel Co., Ltd. and Xinhai New Materials jointly established a joint venture company Xinhai Industry to implement Xinhai Industry's 1.62 million tons of stainless steel project (Phase I) construction and Operation; Xinhai Industry has purchased 460,000 tons of steel-making capacity for the 1.62 million tons of steel-making capacity required by the project (Phase I), and 1.02 million tons of the remaining 1.16 million tons of steel-making capacity will be transferred to Xinhai by Wuhan Iron and Steel Co., Ltd. for a fee Industry, 140,000 tons were transferred from Baosteel Special Steel to Xinhai Industry for a fee.
Baosteel Special Steel transferred the 140,000-ton steelmaking capacity replacement index corresponding to a 60-ton electric furnace under its name to Xinhai Industry for a fee.
According to the evaluation value of the above-mentioned production capacity by a third-party evaluation agency, the unit price of this steelmaking capacity replacement index transfer is 665 yuan/ton including tax, and the total price (including tax) is 93.1 million yuan.The total price (including tax) of the above-mentioned two steelmaking capacity replacement indicators purchased by Xinhai Industrial, a subsidiary of TISCO Stainless, totaled RMB 771 million.
Taigang Stainless said that Xinhai Industrial, a subsidiary of the company, purchased a total of 1.16 million tons of steelmaking capacity indicators from Wuhan Iron and Steel Co., Ltd. and Baosteel Special Steel for the construction and operation of the 1.62 million-ton stainless steel project (Phase I). The company's 300 series stainless steel low-cost and high-efficiency production base.TISCO Stainless and Xinhai New Materials belong to the stainless steel production and manufacturing industry chain, and have strong capital. Xinhai Industry can use the RKEF production line built by Fang Xinhai New Materials to realize the red delivery of nickel and iron, and greatly reduce the freight and electricity costs required for production. Production losses have a strong synergistic effect.At the same time, Xinhai Industrial, a holding subsidiary of the company, has obvious location advantages and a wide range of market radiation, which is an important measure to optimize the layout of TISCO Stainless in the northern coastal areas.
Four types of seven materials applied to the Long March 5
The main products of TISCO Stainless are stainless steel, cold-rolled silicon steel, carbon steel hot-rolled coil, railway axle steel, alloy die steel, military steel, etc.
According to the data, Taiyuan Iron and Steel Group has an annual production capacity of 13 million tons of iron ore concentrate powder, and is the enterprise with the highest self-sufficiency rate of iron ore resources in China. The long-term and stable strategic cooperative relationship can provide reliable and stable resource guarantee for the company's steel production.
In 2021, TISCO Stainless will produce 12,731,400 tons of steel, including 4,472,400 tons of stainless steel; the annual sales of steel will be 12,082,600 tons, including 4,143,200 tons of stainless steel; and 618,300 tons of steel will be exported, including 410,100 tons of stainless steel.
It is worth noting that TISCO Stainless will start from the four aspects of "investment, financing, management and withdrawal" of assets in 2021, and will continue to promote cost reduction, optimize product structure, strictly control the scale of "two golds", strengthen investment management, Promoted effective measures such as reducing legal persons and optimizing capital structure, and carried out the improvement of return on equity (ROE), the company's profitability was greatly improved, asset operation efficiency was gradually enhanced, and capital structure was further optimized.
TISCO's "deleveraging" effect is obvious, and its solvency is further improved. In 2021, the asset-liability ratio will be reduced by 3.60% compared with the previous year, financial expenses will be reduced by 47.89% compared with the previous year, and the total interest-bearing liabilities will be reduced by 41.83% compared with the previous year.
Not only that, TISCO Stainless has connected with national strategies, major projects and key fields, carried out mission-based, "stuck neck" technology and product research, the development volume of key new products exceeded 200,000 tons, 5 new products were launched globally, and 8 iconic The technology is advancing normally, and the market share of strategic and key products has steadily increased.
In terms of stainless steel, four types of seven materials are used in the key parts of the Long March 5B Yao-2 launch vehicle engine to assist in the construction of the manned space station in orbit; the Invar 4J36 medium plate for aviation molds has been successfully developed, and it has become the CR929 for domestic large aircraft. The specified material for the wing mold; N08810 iron-nickel-based alloy material is used in the manufacture of the first domestic photovoltaic polysilicon reactor; the key process route of 316LN is opened for the national large scientific installation.
At the same time, TISCO Nitrogen-containing austenitic stainless steel 304N was applied to the chemical tanker field for the first time; developed precipitation hardening stainless steel SUS630 cold-rolled strip for precision electronics industry, breaking the foreign monopoly; the world's largest diameter 570mm duplex stainless steel forged tube billet Used in offshore oil platform projects to fill gaps in the industry; special materials for liquid hydrogen containers can supply a full range of plates, rods, and pipes, filling the domestic gap; precision strip steel is the world's first non-textured surface product, 0.07mm ultra-flat material, mask plate The use of Invar alloy and Hastelloy for superconducting substrates has been recognized by customers.
