Blind Expansion Of Bitter Fruit &Nbsp; Valin Steel Lost 2 Billion 643 Million Yuan In 2010

In 2010, the whole

000932.SZ disclosed

Blind expansion leads to maladjustment

For the huge losses in 2010, Valin Iron and Steel said that in the past 5 years, the company invested huge sums of money in technical pformation and structural adjustment. While promoting industrial upgrading, it realized the rapid expansion of business scale and tangible assets. However, there was a lag in the promotion of the competitiveness of enterprises, especially in the innovation and pformation of the company's management and control system, the refinement of internal management and the rapid response to the market.

At the same time, the investment in the early stage of technological pformation is large, banks borrow more, asset liability ratio is high, and financial expenditure pressure is high.

These contradictions were highlighted in the company's production and operation in 2010, especially the loss of 2 billion 667 million yuan by the company's subsidiary subsidiary, Hualing Ling steel, which is an important reason for the overall loss of the company.

However, Valin steel also said that in the face of the difficult situation, the management of the company has taken prompt measures to tackle the problem, including the systematic research and development of material procurement, hot metal cost, product sales, energy saving and emission reduction and capital guarantee, etc., and vigorously promoted lean production to achieve the goal of reducing production and efficiency in the production process; rectifying the order of operations, strictly managing factories and blocking loopholes in management, and so on, effectively curbed the situation of huge losses.

Valin Iron and steel also said that the company will go all out to achieve deficits and increase efficiency in 2011. The planned production of iron in 2011 will be 15 million 590 thousand tons of iron production, 15 million 940 thousand tons of steel and 15 million 450 thousand tons of steel, with a sales income of 80 billion 300 million yuan.

Executive compensation meets cold spell

2011 or further pay cuts

Valin's executive compensation has always been a concern for the market.

According to the relevant provisions of the company, the annual operating results disclosed in the annual report of Valin steel are the basis of calculation. The remuneration figures for the previous year, such as the remuneration data disclosed in the annual report of the company in 2010, are the remuneration of senior executives in 2009. The annual remuneration of executives in 2008 is disclosed in the annual report of 2009.

As a result, the company's performance in 2009 dropped by 87.42% compared with 2008, so the salary disclosed by Hualing iron and steel executives in the annual report of 2010 showed a sharp decline compared with the 2009 annual report.

Take Li Xiaowei, chairman of the board, for example, the annual remuneration disclosed in the 2009 annual report is as high as 1 million 14 thousand and 800 yuan, which ranks among the top executives in the domestic steel industry. However, in the annual report of 2010, its salary has dropped to 598 thousand and 500 yuan, a drop of 41%.

The remuneration of directors Cao Huiquan, Wang Jun, Tan Jiujun and Jean Paul Shule reduced from 95.32 yuan, 793 thousand and 800 yuan, 793 thousand and 800 yuan and 484 thousand and 700 yuan to 568 thousand and 500 yuan, 478 thousand and 800 yuan, 478 thousand and 800 yuan and 478 thousand and 800 yuan respectively.

On the basis of this inference, because the performance of Valin steel in 2010 has dropped by 2302.32% compared with 2009, based on this business achievement, the salary of the company executives in the annual report of 2011 should be further lowered in 2010.

For the executives of Hualing iron and steel, they strive to make their own pay "turn over the war", and it is also a great power to make every effort to achieve the efficiency of the company.