Interview with Hou Jun, chairman of Shangang Group: Growth against the trend depends on focusing on the main business and mixed reform and invigorating it

Since the outbreak of the epidemic this year, in the case of large-scale losses in the industry in the first quarter, Shanshan Steel Group still showed a contrarian growth, and the cumulative operating income increased by 6.66% year-on-year, exceeding the schedule plan. Hou Jun, deputy to the National People's Congress, secretary of the party committee and chairman of shandong iron and steel group, said in an exclusive interview with qilu evening news qilu one-point reporter that by 2022, it will strive to enter the world's top 500 companies and create a strong steel enterprise with annual profits of more than 10 billion.

Talk about focusing on the main business:

In principle, the main business of the second-level company shall not exceed 2

Reporter: Last year, 30 provincial state-owned enterprises made public commitments to the "countdown" reform, and Shanshan Steel Group promised to comprehensively clean up and integrate non-main business business, strive to make substantial progress in the liquidation of non-main business assets in 2019, and make breakthrough progress in 2020 to ensure that the proportion of non-main business operating income in 2021 is controlled below 10%. How is this work progressing so far? How to make a breakthrough in 2020?

Hou Jun: Before the end of 2019, in accordance with the development direction of the main business of Shanshan Steel Group and the provincial "top ten" industry confirmed by the Provincial State-owned Assets Supervision and Administration Commission, based on the existing industrial base and the needs of future transformation and upgrading, combined with the strategic positioning of enterprises, Shanshan Steel Group has established the "three main businesses" of ferrous metal mining, smelting and processing, steel trade and services, new materials, high-end equipment manufacturing and technical services.

Through a comprehensive inventory of the business distribution, asset distribution, functional positioning and development direction of the second-level companies under the ownership of the ownership, it was confirmed that the main business of the relevant ownership second-level companies was confirmed, and the main business of each company should not exceed 2 in principle. On April 22 this year, the main business content of the secondary company owned by Shangang Group was officially released.

Shansteel set up a special class for the liquidation and integration of non-main business assets. For those that do not conform to the strategic direction, do not have competitive advantages, have high risks, and continue to lose money, take the initiative to reduce the amount and withdraw from a batch; for emerging industries that are in line with the strategic development of enterprises, select the best to cultivate stronger and larger, revitalize the stock, and retain a batch; for those that conform to the development direction of the "top ten" industries in our province, do a good job of incrementing and reorganizing a batch. Strictly control non-main business investment, and do not break through the control ratio of non-main business investment.

This year, it is necessary to comprehensively promote the task of cleaning up and integrating non-main business assets, realize the clarity of the main business of the ownership company and the reasonable industrial structure of the group company, and ensure that the annual operating income and investment of the non-main business will be less than 10% in 2022.

Reporter: What are the practices of Shangang in attacking its main business?

Hou Jun: We have gathered, concentrated and gathered the internal and external resources of Shangang Steel, and developed in the direction of strengthening, enlarging and optimizing the main business of steel. Last year, the management relationship of the main steel industry was straightened out and the shares of Shanshan Steel were further consolidated.

At the same time, increase the intensity of scientific and technological research and development, reshape the research and development system, increase capital investment, through various ways to recruit top and leading talents to the society, there are two academician workstations, to attract thirty or forty domestic steel industry experts to the society to serve Shanshan Steel. Strengthen coordination and cooperation with colleges and universities and scientific research institutes, and establish key topics and problems to be tackled.

In the promotion of informatization, the "Digital Wisdom Mountain Steel" plan was proposed at the beginning of the year, and under the current situation of changes in competition methods and competition formats, through digitalization and intelligence, the overall development level of the main steel industry, including other industries, was improved.

In terms of cultivating the main business, we have learned from the experience of advanced enterprises such as Baowu and are currently comprehensively and pragmatically promoting it.

Talk about mixed reform:

Can control the control, can participate in the reference, and can even exit completely

Reporter: In the "three-year mixed reform plan", Shangang has identified 14 enterprises, please briefly introduce the progress of mixed reform.

Hou Jun: According to the promise made last year when the TV asked the government, the mixed reform of the anchor chain in Zibo has now been basically completed on time, the mixed reform of Laigang Construction is guaranteed to be completed before the end of this year, and the units listed in the mixed reform work such as Shangang Real Estate are advancing in an orderly manner, and they must ensure that the mixed reform goal is achieved as scheduled in accordance with the public commitment.

Reporter: In the mixed reform work, Shansteel has created a model room for mixed ownership reform, whether it is the Yongfeng Zibo model or the Guoming casting pipe model, what are the key factors behind the success of the mixed reform model room?

Hou Jun: In terms of controlling rights, private enterprises and state-owned enterprises have the problem of self-leadership and competing for the right to speak, which we are very clear about, and our approach is to be able to control and control, to participate in participation, and even through mixed reform, some can be completely withdrawn. In the mixed reform of Yongfeng Zibo, we creatively adopted a shareholding structure of 50% each.

In the governance structure and board building, the establishment of independent directors is also a good method, which may attract the attention of the mixed ownership reform equity structure in the industry in the province or on a larger scale.

In the mixed reform work, we implement one enterprise and one policy. In the structure setting of equity in the reform and restructuring of Guoming Casting Pipe, we have a unified understanding and believe that standardizing the mixed improvement process and taking the road of listed companies is the best way to achieve mixed reform.

Talking about the next stage of steel development:

Breakthroughs should be made around both green and smart aspects

Reporter: Recently, there have been fluctuations in the price of steel, what do you think is the reason? This year's COVID-19 pandemic has also had a certain impact on the steel industry, what are your predictions about the next trend and development?

Hou Jun: The impact of the new crown pneumonia epidemic on the economy is lasting and far-reaching, and under the influence of the epidemic, the pattern of competition and the business format of the steel industry and other industries have undergone profound, essential and even subversive changes.

This year's outbreak of new crown pneumonia has affected the downstream demand of the steel industry more than supply in the short and medium term. With the control of the epidemic, the operation situation of the downstream steel industry has begun to gradually improve. Around May Day, the property market, automobiles, shipbuilding continued to warm up, key transportation construction projects resumed work, the production and sales of the home appliance industry picked up, and the supply and demand pattern recovered to a certain extent, so steel prices rose to a certain extent.

In the first quarter, The cumulative operating income of Shanshan Steel Group increased by 6.66% year-on-year, exceeding the completion of the schedule plan, and the profitability of Shanshan Steel Group maintained a good level in the case of the overall decline of 50% in the industry's profits.

The main task goal in 2020 is to achieve an operating income of 180 billion yuan and a total profit of 6 billion yuan for the whole group and strive for better results.

We have a goal, by 2022, strive to enter the world's top 500, create an annual profit of more than 10 billion steel strong enterprises, initially form a "high-tech enterprise" brand image, and strive to achieve transformation and upgrading in the forefront of national state-owned enterprises, comprehensive competitiveness in the forefront of domestic steel enterprises, deepening reform in the forefront of provincial enterprises, information construction level in the forefront of the first echelon of the domestic steel industry.

Reporter: As a deputy to the National People's Congress, during the two sessions, what problems and developments did you pay more attention to in Shandong's steel industry?

Hou Jun: As a deputy to the National People's Congress, I conducted in-depth exchanges with relevant ministries and commissions and industry associations of the state at the meeting or through other channels to reflect the suggestions and ideas of sustainable and high-quality development of the steel industry, for example, in the process of structural adjustment of the steel industry, the structural adjustment of steel and the redistribution of the territory should rise to the national level and strengthen the improvement of governance capabilities.

At the same time, we should actively strive for the preferential policies introduced by the state that enterprises should enjoy. It is also necessary to base ourselves on Shandong and strive for greater support in giving play to the advantages of manufacturing and state-owned enterprises.

In the steel industry, we are advocating for the construction of a steel industry ecosystem. Shansteel Group has determined the development strategy for the three years from 2020 to 2022: aggregating resources, opening up and sharing, and building a safe and efficient steel industry ecosystem; kinetic energy conversion, innovative governance, and creating a new benchmark for the development of green and intelligent industries.

The ecosystem of the steel industry is mainly an orderly link and relatively closed-loop commercial system of the upstream and downstream of steel and related industries, which is not only a chain concept, but also a group, circle, inside and outside, synergistic and efficient, and jointly enhance the development ecology of the industry, which is our goal.

Especially green and intelligent, Shansteel is at the forefront of the steel industry in the province. The ecological upgrading and structural adjustment of steel in Shandong Province, to solve the difficulties and blockages in the development process, I think it is mainly around green and intelligent breakthroughs.

The planning introduced by the province puts forward clear requirements in the entire regional layout and technological upgrading, and Shansteel, as the only large-scale state-owned steel joint enterprise group in the province, should play an important role in the next step of industrial restructuring, technological breakthroughs, market leadership, and reform.

Mass Newspaper Qilu One Point reporter Zhang Yuyan Wu Hao

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