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Focus: financial risks of many listed companies involved in steel trade

in the second half of last year, a number of steel trade pledge disputes in Shanghai caused heavy losses to the steel trade industry. According to China Securities News, up to now, a large number of steel trade enterprise disputes have not been resolved. Financial risks are hidden behind the conservative accrual of many listed companies involved in steel trade. Under the background that the steel market is still not significantly improved this year, the risks cannot be ignored

asset impairment loss is insufficient

according to the 2012 annual report of Minmetals development, the operating income in 2012 was 149.388 billion yuan, a year-on-year decrease of 9.91%; The net profit loss attributable to shareholders of listed companies was 380million yuan, and the net profit loss attributable to shareholders of listed companies after deducting non recurring profits and losses was 650million yuan, a year-on-year decrease of 4161.87%

however, the loss of 650million yuan may not really reflect the performance of Minmetals development last year. Minmetals development is one of the largest steel traders in China. Its 2012 annual report shows that the trade volume of bulk commodities was 139.137 billion yuan, and its steel trade volume in 2012 was about 26million tons. According to the market average of 4000 yuan per ton of steel last year, its steel trade volume exceeded 100billion yuan. After checking its financial data, China Securities Journal found that the accounts receivable of Minmetals development in 2012 was 4.107 billion yuan, and the inventory reached 9.578 billion yuan, but the asset impairment loss was only 109 million yuan

an accountant told the China Securities Journal: "whether from the perspective of the proportion of bad debts of accounts receivable or the proportion of bad debts of inventories, the provision is obviously too low, and the provision of 108 million yuan obviously cannot fully reflect the release of the company's operational risks."

China Securities Journal failed to get a clear response from the company's development on the reasons for Minmetals' low accounting accrual

last year's steel price trend can not support Minmetals' development of such a small amount of impairment. "If there is inventory, obviously the inventory price is higher than the current market price, and this book loss is difficult to make up over time." A person in the steel industry told the China Securities Journal that last year, the steel price trend was high before and low after. The average price at the beginning of the year was 4500 yuan per ton, the lowest was about 3600 yuan per ton at the end of September, and rebounded to 4100 yuan per ton at the end of the year

the risk of strong applicability of financial risk has not been released yet.

there is also the problem of insufficient release of impairment risk in the logistics storage enterprise with the background of central enterprises. According to its financial data, in 2012, the company's accounts receivable were 929 million yuan and inventories were 1.288 billion yuan, but the asset impairment loss was only 45.457 million yuan

the prepayment of China Reserve Corporation in 2012 was as high as 3.44 billion yuan. The company explained that the main reason was that the company prepaid more money at the end of the year. Among the 26.8 billion yuan of the main business income of China reserve in 2012, more than 24 billion yuan was for bulk commodity transactions, including steel. Last year, the company also involved in steel trade disputes of nearly 100million yuan. Fortunately for listed companies, however, in March, China National Reserve transferred 100% of the equity of its subsidiary Beijing National Reserve logistics, which was involved in the steel trade dispute, to the controlling shareholder China National material storage and Transportation Corporation at a price of 24.3673 million yuan

in the fourth quarter of last year, in addition to the central reserve, many listed companies such as Sinosteel Tianyuan, Xiangyu, Xiamen Xinda and Maanshan Iron and Steel Co., Ltd. fell into steel trade turmoil one after another. However, none of these companies is as lucky as the central reserve, with major shareholders

according to my incomplete statistics of steel, hundreds of credit cases such as repeated pledge and blank bill pledge broke out in the domestic steel storage field in 2012, which severely damaged the reputation of steel trade and storage enterprises

"the ecological chain of the steel trade industry is in jeopardy. The incident has been going on for more than half a year, and there is still no significant improvement at present," the head of a steel storage enterprise with an outbound volume of more than 1 million tons in Shanghai told the China Securities Journal. Since last summer, the capital turnover has been tight, the circulation link has been de stocking, and the inventory and turnover are much less than in previous years. At present, there is no bank to lend money to steel trading enterprises. Even large steel trading enterprises with credit have become very cautious about steel trading

since the beginning of this year, there have been continuous cases of steel trade disputes. The aforementioned insiders in the steel industry said that in fact, they could not solve it in the short term, and they all hoped that the multilateral debt could roll up, on the premise that the steel market would improve, but the current situation did not support this judgment

the profit of the steel industry this year is not optimistic

the above-mentioned people in the steel industry said that the gross profit of enterprises engaged in steel trade last year was basically a loss. If the gross profit could reach%, it would also be regarded as an enterprise with a high level of operation

for the outlook of 2013, China Construction Development Corporation said that the company's comprehensive logistics, trade and regulatory businesses are related to bulk commodities, especially ferrous metals. In 2013, China's macroeconomic environment still faces many risks and challenges. The contradiction between the downward pressure of economic growth and the relative overcapacity may be more prominent, which will become a risk factor affecting the company's business development

since the beginning of this year, domestic steel prices have more optimistic expectations with the urbanization concept at the end of 2012. However, with the gap between actual demand and reality, and the domestic crude steel production continues to create a relatively mature and reliable new high of this technology, which can be used for parallel multi bubble method measurement pressure, steel prices fell rapidly after rising, trading volume shrank, and fluctuated in the range of RMB per ton for more than a month

a number of securities companies reported that facing the arrival of the traditional spring peak season in the market, they are not pessimistic about the market, and the long-term pressure restricting the steel market is still there. Although there is probably seasonal demand, it is difficult to be optimistic about the profitability of the steel trade industry, and the test torque of the empty spring change experimental machine

he Wenbo, chairman of Baosteel Co., Ltd., predicted at the 2012 annual performance presentation meeting of Baosteel Co., Ltd. on April 1 that the low profit state of the steel industry will continue for a long time

the above steel industry insiders said: "the steel trade industry actually has nothing to do with the absolute value of steel prices, only with the fluctuation price difference, but now the fluctuation is getting smaller and smaller. Even if there is fluctuation, the rise and fall conversion is very fast, and it is difficult to make money."

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