A knife in the head. The road of the industry will be worried

On January 14, the company will also plan to make the first public offering of Shanghai ZJY Co., Ltd. (hereinafter referred to as "the Zjy Industry"), with 4 accidents and 1 deaths in its subsidiaries and branches from August 2009 to June 2010.　　The above four accidents were subject to the administrative punishment of the local Work safety supervision administration, and they were fined from 100,000 to 190,000 yuan.　　Industry insiders said that the reporting period of consecutive industrial accidents and by the relevant departments of the four-degree punishment of the proposed listed companies is rare, the company listing the road to become a mystery. 4 work-related accidents in one year the 21.5 million shares of the zjy are to be issued, accounting for 25.68% of the total share capital after issuance. The company's main business is the production and sales of centrifugal square pile.　　The company's sponsor is Everbright Securities. According to the prospectus disclosed, August 29, 2009, April 15, 2010, June 29, 2010, the affiliated subsidiary of the construction industry in Jiaxing are three accidents, respectively, an electrician, two hook workers for violating the operating norms injured, after the rescue of invalid death.　　Jiashan County Safety Production Supervision Authority issued the administrative punishment decision three times, and it is fined 100,000, 148,000, 190,000 yuan. Just after the accident in April 2010 just one months, the May company Suzhou Branch and a repeat of the tragedy, a labor service workers in the steel mold hoisting operation violates the requirements of production operations, injury rescue invalid death.　　Suzhou Wuzhong District Safety Production Supervision Authority issued the "Administrative penalty decision", and a fine of 100,000 yuan. In the prospectus, the paper emphasizes that none of the above accidents is a major safety accident, which has not adversely affected the company's production period and product quality, and the above-mentioned Safety Supervision Bureau also issued relevant certificates, indicating that the above accidents are just general security accidents.　　However, the company still exists because of the production, hoisting and transportation process due to improper use of equipment, operating procedures or other unexpected circumstances caused by safety accidents and casualties of the possibility of the production period, product quality and the company's image has a certain negative impact. The frequent occurrence of accidents that lead to the death of employees, people can not help but doubt the company's safety management capacity and production quality.　　According to the company, one of the reasons for the accident is because the volume and weight of concrete piles are very large, the production process involves a number of complex processes, production equipment such as molds, accessories, such as heavy weight, hooks, unloading more times, hoisting frequent, cross work, with a certain degree of danger. However, according to reporters and Zjy pile industry is the same industry listed companies in ZHE construction and the proposed listed companies in the geo-geo and other companies disclosed information, in recent years there has been no security incidents.　　According to investment bankers, if the internal occurrence of the listed companies to cause the death of staff safety accidents, it is necessary to carry out information disclosure. According to the investment banking industry personage pointed out to the reporter, the listing management method clearly indicated that the company reporting period must not have the serious illegal behavior. In principle, all those who are sentenced to a fine or above administrative punishment are regarded as a major offence, but the enforcement organ of administrative punishment is legally determined that it does not belongAny major offence, except as may be reasonably stated in accordance with the law.　　At present, the announcement of the company's prospectus has passed the first instance, indicating that it does not exist any major illegal activities, but in the near one year of continuous accidents, and its management and risk issues will become the focus of the review. Just cleaned up the related party funds occupy security risks have not subsided, in the Journal of Zjy's prospectus, the reporter also found that the company in 2007 on the related side of the other receivables balance is large, there are related parties occupy funds, 2007 ~2008 Company and shareholders have large funds to borrow money,　　In 2008, the Associated party lending fund was as high as more than 90 million.　　In this respect, the company's explanation is due to the 2007, 2008 expansion of the company's business scale faster, more shortage of funds, so many times to the large shareholder Genjing just borrowed money, resulting in financial statements to Genjing just accumulated outflow of cash, but the actual majority of the outflow is the company to Genjing just started to borrow money from the repayment of funds outflow. Such an explanation still fails to dispel doubts about its financial independence and internal control system. It is disclosed that in September 2009 the company counted the capital occupancy fee generated by the associated party funds to a total of 1.9026 million yuan, to reduce the current financial expenses.　　The major shareholder Shingang voluntarily undertakes the above expenses, and has paid to the company on November 16, 2009, thus the above-mentioned related party funds occupy situation only then cleared up. The declining gross margin rose steel price according to the prospectus disclosed that the company is in the precast concrete pile industry market competition is more intense, the industry average profit rate is lower. According to the China Concrete and Cement Products Association survey, the precast concrete pile industry accounted for 5% of the losses, Boli enterprises accounted for 90%.　　About 400 manufacturing enterprises in the whole industry, the number of entrepreneurs to form large-scale production, 2009 years ago the three major manufacturing enterprises (excluding the zjy) of the pipe pile production accounted for the total output of 51.55%. 2009, the comprehensive gross profit margin of Zjy fell from 29.12% in the previous year to 21.91%,　　This level fell again by 2.18% in the first half of 2010, and the company said one reason for the fall last year was that the standard square pile had been promoted, its gross profit rate had fallen by 5.03%, and the cost of raw material purchases had risen. According to the disclosure, steel, coal, electricity and other raw materials and energy accounted for precast concrete pile production costs of the general proportion of 80% or so.　　In recent years, especially in recent year, the price of raw materials and energy is rising, which makes the cost of precast concrete pile manufacturing enterprises increase correspondingly.　　In recent years, the gross margin of raw material price sensitive analysis shows that steel prices in the company accounted for the largest production costs, the main business margin of steel prices are relatively most sensitive to 2009, as an example, when steel bar prices rose 1%, the main business margin will fall 0.82%. According to the reporter learned that since the low point in mid-July last year, the main market in China's construction steel prices have been rising, from the current marketLow inventory judged by 4 May before the spring festival this trend is likely to continue.　　Shanghai Steel joint analyst told reporters that the current construction of steel in the representative of the Shanghai Grade Two rebar sold in the average price has been from last July's 3600 yuan/ton rose to the present 4560 yuan/ton, up to 27%. Since the end of last year, a number of companies have announced their results by the end of September 2010, but the ZJY has only released its performance as at June 30, 2010. Judging from the rising steel price level, the company's gross margin may not be ideal since the second half.