China Steel Network Chairman You HONGSU: industry website to find the market

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China Steel Network Information Co., Ltd. Chairman You HONGSU (Tencent Science and technology photo)

Tencent Science and Technology (Li Zhiyu) August 17 News, Beijing, China Steel Network Information Co., Ltd. Chairman You Hongsu said that the vertical industry website to find a market for a very large product to do, if you get the market share of 1% is very fierce, in the steel market is tens of billions of of sales revenue.

You Hongsu that the popularity of e-commerce companies and the industry's e-commerce companies still have a big difference, one is a small number of practitioners, currently in the country now has 300,000 or so steel traders, more than 20 end-users, buyers, there are 50,000 or so business customers. The total is 50多万家, the number of practitioners may be only 60 million or 70 million people. So that's a lot less. Another is that it is a traditional industry, a lot of people are not very familiar with the network. This is the difference in understanding.

2010 Internet Conference from August 17 to 19th in Beijing, Tencent technology in the field to carry out a full range of video and text live. As one of the biggest highlights of the Internet conference, micro-blogging interaction has been introduced to the General Assembly on a large scale. As the official exclusive microblogging partner of the General Assembly, Tencent Weibo (http://t.qq.com/) launched a # to ask the CEO questions # activities, all users can advance to your attention to the Internet industry CEO questions.

China Steel Network Information Co., Ltd. Chairman You HONGSU (Tencent Science and technology photo)

The following is an interview with You Hongsu record:

Moderator: Dear friends, everyone good morning! I am very glad that you have come to Tencent network in 2010 China Internet Coverage Conference site, we now invite guests are Beijing Sinosteel Information Co., Ltd. Chairman You Hongsu Yao, first please Yao to say hello to the netizens.

You Hongsu: Dear friends, Hello!

Moderator: Yao always speaks a standard Henan dialect, I think we can understand. (laughter) First of all, please Yao to tell us about the steel net is mainly to do which pieces of business? What services are provided?

You HONGSU: China Steel Network Information Co., Ltd., this is the name of our company. The name of our website is called China Steel Net. Our website is an industry portal, it should be said that the current industry in the portal to do the best.

Moderator: Advice for steel?

You Hongsu: Yes, consulting, quotes, including the latest news events in the industry. This is the best we have available on our website at present. The second is search, including some resources.

Moderator: Site search?

You Hongsu: Yes, it is our industry search, for example, find some goods, find some resources.

Moderator: Trade, buy and sell steel.

You Hongsu: Understand the market prices throughout the country, know the price of Beijing, Shanghai is how much money, or Beijing has what kind of resources, Shanghai has what kind of resources, Nanjing has what kind of resources. This is for search. The third is the electronic commerce, now mainly is the spot transaction, it distinguishes between the futures and the electronic disk one kind of transaction way. The trading of futures and electronic discs is basically similar, but the product is different.

Our website is positioned to move the traditional steel market to the Internet. Popular speaking, we all know Dangdang, is the traditional books on the internet. Because in reality not a steel market can suddenly put tens of millions of tons of steel to a platform to sell, even if it has, that is at least thousands of acres, the cost is very high. And the Internet can do this very easily. And at present we are also the largest online steel market in China.

Moderator: When did our company create this website?

You Hongsu: Our company started from April 15, 2006, began to recruit staff, May 8, 2006 officially online.

Moderator: If you think about revenue, how big is our company?

You Hongsu: Because this site we only moved to Beijing last August, has been in Zhengzhou. We now have a headquarters in Beijing, Zhengzhou has a operation center. Now the annual income is not much, a year is more than 20 million of the operating income.

Moderator: But your profits are higher?

You Hongsu: Yes, the cost is comparatively low. At present, the operation of enterprises is more normal.

Moderator: How about growth?

You Hongsu: Basically the annual growth rate is more than 200.

Moderator: How do you look at E-commerce including the application of the Internet in the vertical field? For example, what are your applications in the steel industry? What advice would you make if you were to advise an entrepreneur who wants to do e-commerce or vertical portals?

You Hongsu: The popularity of e-commerce companies and our industry e-commerce companies still have a big difference, one is a small number of practitioners, currently in the country now has 300,000 or so steel traders, more than 20 end-users, buyers, there are 50,000 or so business customers. The total is 50多万家, the number of practitioners may be only 60 million or 70 million people. So that's a lot less. Another is that it is a traditional industry, a lot of people are not very familiar with the network. This is the difference in understanding.

But take our steel this industry, the annual volume of steel trading is about 4 trillion, is very large. Because steel is the country's a relatively large pillar industry.

Moderator: So your speech revealed a message, we want to do vertical industry site we need to find a very large market products to do.

You Hongsu: Yes, because it has to have a certain market capacity to make a profit from it. Just like our industry, if we get this market 1% market share is very strong, is tens of billions of of sales revenue. The industry itself is a relatively high-end customer base. For example, a simple steel trade, he has a strong consumer power, at least at least millions of assets, more than tens of millions of, a few billion assets. So the customer's consumption ability is also very high.

Moderator: Yao, because our company is China's steel network, currently in the financial field more hot topics have two, the first is iron ore negotiations, iron ore negotiations we have been anxious, there is no particularly clear results, or the results of the negotiations are not satisfactory, What do you think of China's steel companies in the iron ore negotiations to better seize the initiative?

You HONGSU: Iron ore negotiations from the macroscopic point of view, we still do not have a good way to solve this problem, not only we are difficult to solve, the state is difficult to solve this problem, because the current society is a resource-oriented society, mastered the resources to grasp the initiative, you three months, six months do not buy can, But you can't buy it for a year, it's unrealistic. Resources are becoming more and more important to our society.

I think in the short term to solve this problem, the first one is to hold a group together to focus on procurement, such as a single purchase of 50,000 tons a year, the centralized procurement may be 500 million tons, so that can be very three months or six months, for the mine is also very high pressure. The second is in our country first to develop a lot of domestic mining resources, we should vigorously develop domestic mine resources. In addition to looking for more and better resources around the world, like Wisco in Australia to acquire a mine, this is a very sensible. I think that from these two points can basically solve the problem, but can not say that the absolute solution, because resources are non-renewable.

Moderator: Last question, I would like to ask, in the end, our steel prices have been higher, because the steel is the economic construction or infrastructure construction or manufacturing of the necessary products or raw materials, whether this is aware of because our macroeconomic further to the good or our market supply relatively small lead to price increases?

You Hongsu: Because of the three consecutive months of decline in steel, and showing a continuous four weeks of rising, from July 20 steel prices continue to rise, the extent of the rise is about 8% to 10%. This range should be said to be relatively large. But this rise in the range from our researcher's point of view ...

Moderator: Is the inventory gone, or what?

You Hongsu: From the point of view of our researcher, the main factor is to look at the people's mentality. Basically now the price of steel still depends on the futures and the trading of the electronic plate is doing. The state is still suppressing steel in its macroeconomic policies, so there is no big change in macro policy, market demand has not changed much, so the price of steel, so there is no too much to explain, basically up about 10%, because Wugang, Baosteel and other three major steel mills in September to concentrate on raising prices, about to mention 5–10 The range between, if so, China's steel prices will continue to rise. From our point of view, of course, the risks behind the rise are enormous.

Moderator: There may be other crises or problems.

You Hongsu: Yes, but from the rise of the country's steel prices and economic environment to see the overall is relatively good, growth is still very good.

Moderator: Because of the relationship between time, we and Yao always simple chat to here, once again thank Yao to visit our studio, but also thank you for your participation in this interview, we are here, thank you.

You Hongsu: Thank you.