Chongqing Iron and Steel Group took measures to improve its profitability

Chongqing Iron and Steel announced on the evening of November 10 that the company received approval from the China Securities Regulatory Commission on the 8th to approve the company’s major asset restructuring and the sale of shares to Chongqing Iron and Steel Group to purchase assets and supporting financing. It was effective within 12 months. .

Chongqing Iron and Steel (Group) Co., Ltd. (hereafter referred to as "Heavy Steel Group") is a large-scale iron and steel conglomerate with a history of 123 years. Its predecessor was the Hanyang ironworks established by the late Qing government of China in 1890. It can be called the Chinese national steel industry. Cradle. Mao Zedong, Deng Xiaoping, and Jiang Zemin, leaders of the three generations of the Communist Party of China, have left a footprint on the hot spot of the Heavy Steel Group.

According to statistics, Chongqing Iron & Steel paid 200 million yuan in cash to 1.98 billion shares issued by Chunggang Group at a price of 3.14 yuan per share, and acquired steel production-related assets and auxiliary facilities for the construction of Longsteel Group in Changshou New District. The transaction price was 16.936 billion yuan; at the same time, no more than 2 billion yuan in matching funds will be raised for non-public offering of shares by no more than 10 specific investors. If the plan is implemented, the listed company’s steel production capacity will increase from 3 million tons to 6 million tons, and the equipment process will be greatly improved. The main products will also be increased to 1780mm thin plate, 2700mm medium plate, 4100mm plate and bar line product; meanwhile, the asset quality and The financial situation will also be greatly improved.

Previously, Chongqing Iron & Steel announced a report on its consolidated pro forma profit forecast. This report shows that due to the severe industry situation this year, although the company’s asset size, operating income, and other indicators will increase significantly after the completion of the restructuring, the combined net loss of the company will increase to 2.553 billion. yuan.

However, the company expects the net loss in 2014 to be about 547 million yuan, which is significantly narrower than this year, mainly because the management of the company predicts that the environment of the steel industry will gradually come out of the bottom and that the company is taking a series of measures to reduce losses and it is expected to improve. The company's profitability.

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