Chongqing Iron & Steel eager to restructure to achieve self-redemption, or is experiencing a movement of "playing with fire".
May 30, Chongqing Iron & Steel announced that the Steel Group Company intends to 3.14 yuan / share issuance of not more than 1.996 billion shares, and not more than 538 million yuan Steel Group acquired predictive value of the assets of 19.834 billion yuan and 107.28 billion liabilities; the same time, Chongqing Iron & Steel intended to be not less than 2.83 yuan / share private placement to raise not more than 2.2 billion yuan in cash.
"China Business" reporter was informed that the relevant subject matter of the reorganization involving 17.5 billion yuan turned out to be not approved the first building of the violation items, and to be injected into some of the properties yet to go through the ownership documents. Although the largest shareholder of Chongqing Iron & Steel & Steel Group promised to bear risks and losses that may result from the above problems, but restructuring may still be injected into the assets of the project approval or certificate of title incomplete abortion.
Betting on the restructuring to improve performance
Under the restructuring plan announced on May 30, Chongqing Iron & Steel owned the controlling shareholder of Chongqing Iron & Steel (Group) Co., Ltd. (hereinafter referred to as the "Steel Group") the assets of the underlying assets of the estimated 19.834 billion yuan of the longevity of the new plant and supporting public and auxiliary facilities injected is about to start. Excluding the impairment loss of fixed assets caused by the Chongqing Iron & Steel because of environmental relocation estimate of 2.3 billion yuan after the injection of assets amounted to 17.534 billion yuan.
Previously, the company has always stressed that the reorganization is to resolve the intra-industry competition and major shareholders. In fact, the poor performance is a step by step, Chongqing Iron & Steel to push production of the abyss of abjection and industry. Chongqing Iron & Steel 2011 Annual Report, 2011 operating income increased by 41.12%; but net loss of 1.375 billion yuan, down by 8803.14%. The first quarter 2012 reported loss of 184 million yuan.
It is understood that the end of 2008 before starting the environmental relocation, no related party transactions between the Chongqing Iron and Steel Group, but the environmental relocation process, Chongqing Iron & Steel will not be able to raise billions in funds for construction, heavy steel Group assumed the new plant investment and construction work, Chongqing Iron & Steel only involved in the investment and construction of the rolling and other end of the production processes.
Since April 2010, the Chongqing Iron & Steel gradually in batches completed and put into production the new plant assets free of charge licensed to Chongqing Iron & Steel. 2011 this part of the provisional largest shareholder authorization to use free of charge asset management fees of up to 503 million yuan.
In addition, the agreement was the expiry on March 31, 2012. If the largest shareholder of the relevant assets into the listed company, then inevitably produce large amounts of related party transactions and related assets of Chongqing Iron & Steel is a major shareholder will also generate substantial costs. Against this background, the company had to intensify the implementation of the reorganization plan.
Huaxin Securities analyst Zhang Hui, analysts pointed out that the company was so eager to restructuring, its purpose is to achieve self-salvation. The data show that the company plans to business objectives of the 2012 annual output of 6.5 million tons of steel, 60 million yuan of profits.
But industry analysts pointed out that terrorism is difficult to achieve in the steel industry in the doldrums, and overcapacity in the context of the company's turnaround plan. Expect to achieve through the restructuring of the results of positive, which has fundamentally difficult to improve the company's fundamentals.
To be injected into the assets involved in trouble
Also noteworthy is that Chongqing Iron & Steel's betting the reorganization to be injected into the assets of alleged breach.
Material from the audit department, Chongqing Iron & Steel reported to the National Development and Reform Commission for approval of environmental relocation project of Chongqing Iron & Steel Group to consult on April 23, 2008, but had not been approved by the National Development and Reform Commission. Chongqing Iron and Steel in the relocation of the actual year and a half later, on December 23, 2008 was released the announcement.
The audit department that the relocation of Chongqing Iron & Steel Group has always been less a key element, that is, without the approval of the National Development and Reform Commission warned Steel Group, and before and after October 2009.
Steel Group warned that the end of August 2009, the relocation project has been to invest over 100 billion, such a large project is not approved construction, Chongqing Iron & Steel serious violations of law, local governments this illegal approval and thousands of acres of This has serious violation.
Industry who asked not to named researchers on this analysis pointed out that the National Development and Reform Commission or the land department to confirm the removal procedures for violations of its environmental protection that will face economic sanctions. It also gives the uncertainty of its plan to save the results of a critical situation.
In the restructuring plan, the Steel Group is still committed, in the major asset restructuring plan within six months after the general meeting of shareholders for the company to secure at least 1.5 billion yuan of government subsidies. However, this subsidy whether the honor is also a problem.
It is reported that Chongqing Municipal Government held in early 2007 Steel Group environmentally friendly relocation leading group for the first meeting, said the relocation project of Chongqing Iron & Steel Group to enjoy the Chongqing urban area security risks of environmental pollution, relocation of key enterprises preferential policies, within five years Steel Group for about 1.25 billion yuan tax refunds.
However, in the course of implementation, a move opposed by the state tax department, audit department also raised objections. In this regard, the staff of the Office of the Chongqing Iron & Steel secretaries also said that the reorganization is that there are some risks, but related project operation whether the violation is relevant departments identified.
It is reported that Chongqing Iron & Steel major reorganization of assets requires the approval of the various departments of Chongqing City, the SASAC, the Ministry of Land and Resources, Ministry of Environmental Protection, Ministry of Railways, National Development and Reform Commission, Securities Regulatory Commission, the procedures are more complex.
The staff of Chongqing Municipal SASAC a condition of anonymity told reporters that the city's state-owned assets reorganization of the most important things to promote the restructuring of Chongqing Iron & Steel.   Therefore, the Government has only given in the related tax policies related to tilt. This illustrates the full support of the local government for the steel giant. The source said the Government supported the restructuring of Chongqing Iron & Steel, to catch a losing streak and facing delisting risk, then the next step more difficult restructuring the company has not.



Other News:
Imported bearings manufactured with the holes honing head
Chongqing iron and steel into the reorganization of assets was not built before
Limbaugh, Morrissey, Perry: The dumbest political quotes of the week
Judgment of the bearing
Fluoro dwindling demand, production has risen in the circle.＂
IKO pole end knuckle bearing 1 PHS4
Bearing processing heat treatment process and technical application effect
Koyo importance of self-aligning ball bearing lubrication for rolling sound