Hong Kong China Travel Service Group into a first central enterprises to exit the steel industry
December 9, the "Daily Economic News" reporter learned that, as the central rate of the Hong Kong China Travel Service Group, Inc. (hereinafter referred to as Hong Kong China Travel Service Group) decided to withdraw from the steel industry, has become the first company announced its withdrawal from the steel industry's central enterprises. The group on December 7 release of the "Hong Kong China Travel Service Group on the free transfer of significant assets of notice", to be held free transfer of the company's steel and coke companies to Hebei SASAC.
The industry believes that the domestic steel industry into a serious overcapacity in the short term, the hope still do not see improvement, Hong Kong China Travel Service Group In this context opt out, is not the loss of the steel plate to drag, to enhance the company's overall profitability.
First exit into the steel industry of central enterprises
December 9, reporters in China's interbank market dealers association's official website to see, Hong Kong China Travel Service Group issued a notice to convene the relevant creditor meeting, announcement revealed that Hong Kong China Travel Service Group decided to withdraw from the iron and steel business, we intend to hold some Guofeng Iron and Steel Co., Ltd. (hereinafter referred to Guofeng Iron and Steel) 35.09% 58.49% equity stake and Tangshan Dafeng Coking Co. (hereinafter referred to as Da coking) assigned to Hebei SASAC.
Hong Kong China Travel Service Group official website, the group is SASAC supervision of central enterprises, also one of the four Hong Kong-funded enterprises. By the end of 2014, total assets of 100.9 billion yuan, sales income of 50.68 billion yuan, total profit of 2.092 billion yuan, employs 4.5 million people, the business scope covers travel, hotel, financial, steel and logistics business segment, holding Hong Kong China Travel (00308, HK) and CTS Logistics (603128, SH).
Transfer target Guofeng Iron and Steel was founded in 1993 by the Hong Kong China Travel Group Holdings, with an annual output of iron, steel, timber and all 8.5 million tons production capacity of 1.2 million tons of cold-rolled products, employs 1.4 million people, while Da coking is Production of steel supporting the necessary coke.
Hong Kong China Travel Service Group announced its withdrawal from the iron and steel industry, the news of the industry by surprise. "A few years ago there have been reports of central enterprises to exit the steel trade and industry, but the central enterprises to exit the steel business is the first time." Senior researcher Qiu Yuecheng on the "Daily Economic News" reporter said.
In fact, Hong Kong China Travel Service Group three years ago had also hope to expand their steel territory. May 2012, Hong Kong China Travel Service Group had announced wish to spend the transferee SASAC held in Chaoyang City, Liaoning Province, Lingyuan Iron (600231, SH) shares, after the completion of CTS becomes Lingganggufen actual controller, but this acquisition He died in April 2013.
"CTS to 20 years in the steel industry directly to give, it does make the industry surprised, bad situation in the industry this year, so if the industry continues, there may be a number of mergers and acquisitions next year." Analyst Zhang Lin told reporters.
Rejection of the "burden" to enhance profitability
The industry believes that Hong Kong China Travel Service Group to exit the steel industry, with the loss of the steel plate this year, dragged down its overall performance related.
"Hong Kong China Travel Service Group in 1993 to enter the steel industry is the rapid development period, but now the situation has changed dramatically, the steel industry is facing a long and painful process reshuffle and restructuring, the prospects are very bleak." My steel mesh Information Director Xu Xiangchun told the "Daily In economic news "reporter.
Xu Xiangchun said that in the background of these industries, Hong Kong China Travel Service Group hopes to strengthen its own tourism the main industry, the steel industry are not good exit, the earnings prospects of the transfer of assets stripping.
In fact, Guofeng Iron and Steel Hebei Metallurgical Industry Association where also disclosed, in October, accounting for the province's crude steel production capacity of the first industry-wide loss of 95 percent of member steel companies from January to October the cumulative loss of 174 million yuan, a loss of up to 60% or more.
"According to Hong Kong China Travel Tangshan Guofeng Iron & Steel Co., Ltd. holds 58.49% stake is estimated that in the first three quarters of Tangshan Guofeng losses may reach 800 million to 10 million, the fourth quarter loss rate may be greater, after a few years do not see hope , stripping loss of assets, help to improve overall profitability. "said Qiu Yuecheng.
According to Hong Kong China Travel Service Group announcement, according to financial data company in the first three quarters of this year, preliminary estimates, if not included in the consolidated financial statements of the target company, the company expects total assets fell to 103.29 billion yuan from 123.65 billion yuan (down 16.5%), net assets from 300.2 billion dropped to 21.89 billion yuan (down 27.1%), operating income fell from 35.02 billion yuan to 21.27 billion yuan (down 39.3%), net profit increased from 143 million yuan to 804 million yuan (an increase of 462.5%), the underlying asset stripping later, although the total assets of revenues will decline, but net profit surge appears instead.
October 22, the central feedback tenth special inspection teams to tour Hong Kong China Travel Service Group case also pointed out that Hong Kong China Travel Service Group had investment decisions unscientific, blind setting up shops on the project, resulting in significant losses and other issues.
Reporters on these issues call CTS Group spokesman Gong Xiaobing, but many have no answer call.