Hangxiao Steel's net profit increased 86% YoY in the first half of the year

On the evening of August 25, the Hangxiao steel structure that was plagued by the lawsuit published the 2013 interim report.

From the company's seemingly splendid report, in the first half of 2013, Hangxiao Steel achieved operating income of 1.45 billion yuan, an increase of 19.9% ​​from the previous year; net profit attributable to shareholders of the listed company was 7.39 million yuan, an increase of 85.76%. At the same time, the net cash flow from operating activities in the first half of the year also increased from RMB -127 million in the same period of last year to RMB 80.41 million.

However, it is not difficult to find out through the report that it is hidden behind the beautiful report that the net profit after deducting non-recurring gains and losses attributable to the shareholders of the listed company in the first half of Hangxiao Steel was only 4.37 million yuan, which fell sharply over the same period of last year. 70%.

The reason why the company’s net profit rose from a 70% drop to a growth of 86% was because the company received an “incidental income” of up to 3.02 million yuan in the first half of this year, and the main force constituting this income was a sum of money. A government grant of 2.71 million yuan.

Government grants soared by 176%

In the report of the company’s board of directors, Hangxiao Steel frankly stated that due to factors such as the international economic downturn, the slowdown in domestic economic growth, and the intensified competition in the industry, the company’s production and operations are facing certain challenges.

However, after a brief discussion on how the company “cope with challenges”, its board report more focused on the company’s “in the first half of 2013, achieved a new contract of 2.313 billion yuan, up 21.80% over the same period last year” and “as of On the report day, the first phase of the Wanzhou and Daducheng project has opened 1336 sets of accumulatively-sold houses and accumulated 1317 sets of contracts.

In addition, it is worth noting that in the first half of 2013, although the construction industry, which accounted for a major portion of Hangzhenxiao Steel's operating income, realized operating income of 1.36 billion yuan, a year-on-year increase, its gross profit margin declined by 3.6 percentage points to 13.05%.

In the non-recurring gains and losses project, Hangxiao Steel obtained 480,000 yuan in disposal income from illiquid assets (including the write-off portion of impairment provisions for assets), government grants of 2.71 million yuan, and other operating income of 890,000 yuan in the first half of the year. After deducting the minority shareholders’ profit and loss and income tax, the total amount was 3.02 million yuan.

According to the report, the government subsidy of up to 2.71 million yuan is not closely related to the normal business operations of the company. It is also not in line with the state policy, and is subject to constant or fixed amount of certain standards. In the medium-term reporting period, Hangxiao Steel actually received a total of 3.72 million yuan in government subsidies that were included in non-operating income, compared with only 1.35 million yuan in the same period of last year, a surge of 176% year-on-year.

Lawsuits are still continuing. In fact, Hangxiao Steel is not only facing pressure from the market. In recent years, Hangxiao Steel has been a headache. It is also a major “deed” that has made it famous in the securities market. It is often the top of the company’s head. lawsuit.

On July 3, the supplementary announcement of the 2012 annual report disclosed by Hangxiao Steel Structure involved eight cases of contract disputes. The majority of contract disputes were related companies’ arrears on Hangxiao Steel. Among them, the dispute between Hangzhou Xiaoxiao Steel and the bankruptcy administrator of Jiangsu Guoan Construction & Installation Engineering Co., Ltd. involved in the subcontracting contract involved the highest amount.

This lawsuit on Hangxiao Steel and Jiangsu Guoan was again mentioned in the company's 2013 interim report.

According to the Zhongbiao, the Yancheng Intermediate People's Court held that the basic judgment was unclear in the judgment of the original judgment and ruled that the Dafeng City People's Court should be revoked (2012) in relation to disputes over construction subcontracts between Hangxiao Steel and the bankruptcy administrator of Jiangsu Guoan Construction & Installation Engineering Co., Ltd. ) The civil judgment No. 0011 of Dashang Minchu Zi was sent back to Dafeng City People's Court for retrial.

This means that this dispute, which occurred in 2009, has not yet been resolved and it has to wait for the retrial procedure to proceed. According to public information, Jiangsu Guoan Construction & Installation Engineering Co., Ltd. was responsible for civil engineering support as early as that time in Hangxiao Steel's 34.4 billion yuan price Angola project. According to a related person from Jiangsu Guoan, although the company has already filed for bankruptcy and restructuring, in order to request “a total of about 140 million yuan in project funds,” the lawsuit must be “fought to the end”.

In addition, Hangxiao Steel's structure also reported that on April 10th this year, it received information from Hangzhou Xiaozhe Steel Structure Co., Ltd., Wuhan Xiangli Real Estate Development Co., Ltd. and Wuhan Zhonglian Samsung Industrial Co., Ltd. issued by the Intermediate People's Court of Hangzhou, Zhejiang Province. The "Civil Judgment" in the case of construction project construction contract disputes. However, this verdict was clearly not in line with the appeal of Hangxiao Steel. The Zhongpai News indicated that it had objections to the verdict and appealed.

In response, an industry analyst who did not wish to be named told the "Securities Daily" reporter: "Although contract disputes in the construction industry are normal, if Hang Xiao Steel is so frequent, it also shows some problems. At least, the company is Customers and their own credit management should do a better job and reduce the chance of disputes."