Guangdong Zhongnan Iron & Steel Co., Ltd.
中南股份
000717
Shenzhen Stock Exchange
Company Profile
The company has realized the stable and smooth production of the blast furnaces, with the molten iron cost at the low level in the industry, by management reform, such as improving the performance appraisal system, deepening the “post faultfinding, post benchmarking, and post improvement” standardization promotion activities, built the three-level benchmarking system as well as the management means, such as eliminating the low-efficiency production capacity, improving the production line efficiency, organizing the production and operation with the maximum marginal contribution, and optimizing the purchasing mode; the coke self-supply rate is up to 100%, thus effectively resisting the risk of the coke price fluctuation; grasp the steel scrap market situations and reduce the iron-steel ratio to about 850kg/t. The personnel efficiency has been significantly improved through management optimization. In 2022, the number of the employees was reduced to 5,258, and the steel production per capita is about 1300t. In Guangdong Province, the gap of the long products is up to about 20.00 million tons, the steel price is higher than that in the northern and eastern China regions, and the price has higher sensitivity and bigger flexibility for profit-making. The production capacity of the long products of the company ranks the No. 1 in Guangdong Province. The company has the strong brand advantage and has certain pricing right. In addition, with the help of the Ouyeel platform, the direct sales ratio is about 70%, the price adjusting period is not fixed, and the sales policy of payment before delivery is practiced. The company actively participates in the direct supply and sales of the products for the key projects, and the products have been widely used in the key projects, such as Guangzhou Metro, Shenzhen Metro, Shenzhen Conference and Exhibition Center, and HongKong-Zhuhai-Macao Bridge, enjoying good market reputation.
Full description
Guangdong Zhongnan Iron & Steel Co., Ltd. was a company limited by shares initially launched by the former Guangdong Shaoguan Iron & Steel Group Co., Ltd. under the approval by DocumentYue-Ban-Han [1997] No. 117 of the People’s Government of Guangdong Province, while issuing the shares to the public. With the approval of State-owned Assets Supervision and Administration Commission of the State Council (SASAC), the controlling shareholder Guangdong Shaoguan Iron & Steel Group Co., Ltd. transferred the equity free of charge to Baosteel Group Corporation in December 2011. The industrial and commercial registration change procedures were finished, and Baosteel Group Corporation became the controlling shareholder and actual controller of this company in September 2012. Baosteel Group Corporation was renamed as China Baowu Steel Group Corporation Limited in November 2016. The company had total capital stock of 2,423,845,590 shares, and the controlling holder Baowu Group Guangdong Shaoguan Iron and Steel Co., Ltd. had 2,423,845,590 shares till December 31, 2024. The company falls in the and iron & steel industry. Scope of operation covers manufacturing, machining and sales of iron & steel products, metal products, coke, coal chemical products, technical development, transfer, introduction and consulting service. The company operates the export business of the products and technologies as well as the import business of the required mechanical equipment, parts and components, raw materials and technologies, except the products and technologies that shall not be imported and exported by the company according to the national regulations; imports the steel scrap, copper scrap, aluminum scrap, waste paper and waste plastics (to be operated according to the Document [2003] Yue-Wai-Mao-Fa Deng-Ji-Zi-No. 139). The sales of the mineral products and the sales of coal. Common shipment. The company is the largest iron & steel manufacturing enterprise in Guangdong Province, having three blast furnaces with the capacity of 1*1,050m3, 1*2,200m3 and 1*3,200m3respectively, three sets of 120t converters, two sets of 130t converters; two bar rolling lines, one 3450 plate rolling line, one high speed wire rod rolling line, and one industrial wire rod rolling line. The crude steel output accounts for about 15% of the market share in Guangdong Province, and the annual production capacity of the rolled products is about 5.70 million tons. Guangdong Province is the province having the net inflow of steel products, and the demand for steel products is far over the local production capacity. After the cracking down on substandard steels and the steels by medium-frequency melting furnace by the national government, the local market competition is more orderly. The company has benefited much from the positioning of being dedicated to the production of the high-end bar and wire products.