The riddle of Hua Ling's huge loss 2.7 billion: integrated Lian Steel 14 "unsuccessful"

China's steel industry vigorously promote mergers and acquisitions, the formation of a "Big Mac" but the whole situation is not the same, in Hualing Steel (000932.　　SZ) company to show incisively and vividly.　　The Iron and steel enterprise in Hunan province recently released the 2010 annual Performance Notice revised notice that the net profit attributable to the listed company's shareholders is 2.5 billion ~27 billion, and the previously estimated loss of 1.8 billion ~20 billion, 2009 profit of 120 million yuan. In stark contrast, several peer announcements that have released performance letters show that Baosteel shares 600019. SH) is expected to 2010 net profit of 12.806 billion yuan, an increase of 120.18%; SZ) is expected to 2010 net profit of 1.7 billion ~19 billion, year-on-year growth 133%~161%, Baotou Steel shares (600010.　　SH) is expected to achieve profitability in 2010, net profit of about 150 million ~2.5 billion.　　While the overall profitability of steel stocks was generally not good last year, it was shocking to investors that there was such a huge loss of investment in hualing.　　In recognition of the huge losses caused by the excessive expansion, hualing iron and Steel was explained in last year's third quarterly report, saying it was the result of operating losses in Hunan Hualing Lianyuan Steel Co., Ltd. (hereinafter "Lianyuan Steel"), a holding subsidiary in the first three quarter of last year. The loss of Lianyuan Steel has 5 major causes, in the first place, Lian Steel has failed to properly handle the long-supply relationship with overseas iron ore suppliers in recent two years, resulting in a reduction in the proportion of iron ore to around 40% annually, and the cost of iron ore is obviously high; at the same time, Lian Steel failed to better grasp the opportunity of iron ore purchase　　Iron ore purchased a large amount of iron ore at the top of the year during the two quarter of last year and was used in the three quarter, affecting iron ore costs in the third quarter. For the loss is higher than originally expected, hualing Steel is said to be unable to accurately estimate the future of Lian steel deferred tax assets can be reversed,　　The company intends to revert the deferred income tax assets, which are confirmed as of September 30, 2010, to 566 million yuan; At the same time, the company's third-quarter report on the performance of the fourth quarter of the last year will be the loss of the 200 million Yuan deferred income tax assets, out of prudence principle not to mention, so the company's profits again fell about 766 million yuan.　　Hualing Steel also explained that at the end of 2009, the new production project is still in operation, production is not smooth, the related consumption index is higher than the design value, the production line process mismatch, restricting the production line to fully display the capacity advantages, resulting in higher product costs.　　After rapid expansion, the product structure of hualing steel has changed from a long material to a plate mainly, but in the process of transformation, the management of hualing Steel has not been followed. "The underlying cause of the loss should be the valin of steel consolidation, the company's previous ' triple-a ' reorganization, which excludes duplicate production structures, but the integration of three management companies is not ideal," he said.　　"said the steel industry analyst at a Shanghai brokerage. Integration is notReactive？　　Since 1999, Hualing Steel has landed in the capital market.　　Hua Ling Steel Parent company for Hunan Hualing Iron and Steel Group Co., Ltd. (hereinafter referred to as "hualing Group"), is at the end of 1997 by the three major steel enterprises in Hunan-Xiangtan steel, Lian Steel, Heng Steel joint formation of large-scale enterprise groups.　　Although Hua Ling group claimed that through deepening reform, innovation management, strengthening capital operation, promoting structural optimization and industrial upgrading to achieve a sustained and coordinated leapfrog development, but the performance of hualing Steel show that the company actually heavy production of light management. The company acknowledges that, in the process of transformation, Lian Steel's original management concept, marketing and research and development system is not suitable, the variety development system is not smooth, the product grade is not high, high input can not high output; The marketing system still relies on the middleman, the product direct proportion is low, at the same time the management is extensive, the management order is more chaotic　　The factory is not strict. In exchange with investors, Hua Ling Steel executives explained that the company's main strategy for three steel mills is "strategic control, business synergy." Business synergy mainly refers to the procurement, marketing and technical synergy, marketing is mainly targeted at customers, but three steel mills of different products, "so the customer almost does not overlap, so the coordination is relatively small", and procurement, including shipping and import of the coordination of ore, "but the cooperation of the sea did not do, iron ore although a few, But not fully covered.　　"See this reason, Hualing steel last three quarters adjusted the main management team of Lianyuan Steel, actively take measures to tap potential losses, at the same time set up a special team to further improve corporate governance, optimize the control mode, strengthen procurement, research and development, investment and sales and other aspects of business synergy." "As far as I know, the purchasing department of Lianyuan Steel also changed."　　A joint metal network analyst told the newspaper. In fact, "not fit" is not a problem for a steel company in hualing Steel. In recent years, the state vigorously advocated and promote the steel industry merger and reorganization, under the policy support, the steel industry mergers and acquisitions more and more, but the vast majority of the Government under the impetus of passive integration, many enterprises have been "whole and not".