In the afternoon of April 1, Baosteel Co.,Ltd. holds 2012 annual performance results online description meeting. Group Corporation general manager, Baosteel Co.,Ltd. chairman, Party secretary He Wenbo, Baosteel Co.,Ltd. general manager Ma Guoqiang, Baosteel Board of Directors secretary, chief financial officer Zhu Kebing have online exchange with investors on hot issues such as operating condition, stock repurchase, financing plan and future development strategy.
By March 31 this year, Baosteel Co.,Ltd. cumulative repurchase are 625,228,928 shares, accounting for about 3.5% of company's original total share capital; canceled stock repurchase are 235,228,928 shares, representing approximately 1.4%. of the company's present total share capital. The company's highest repurchase price is 5.00 yuan / share, lowest price is 4.51 yuan / share and total amount of payment is aapproximately 2.96 billion yuan(including commission).
The majority of investors, while approving Baosteel's implementation of stock repurchase, raise suggestions and comments on enhancing the company's stock price and improving investment value. He Wenbo and Ma Guoqiang also reiterate that the company will achieve repurchase combining market situation and within committed amount. Raising price and improving investment value is not only a way of repurchasing, more importantly it is to let capital market have a correct understanding of Baosteel Co.,Ltd. market value. In this regard, the company will have further arrangements.
He Wenbo and Ma Guoqiang say that Baosteel Co.,Ltd. has completed the new round planning (2013-2018) preparation. The major changes embodied in this round of planning are: Strategic objective is changed from "the world's most competitive steel company" to "the world's most competitive steel company and the listed company with most investment value"; It clarifies path and initiatives in accelerating electronic business, information industry, resource investment, new material base construction competitiveness enhancement. It also clearly put forward initiatives in accelerating overseas steel base strategic layout; In line with Shanghai Wusong industry upgrade, it gives full consideration to production line relocation and upgrading initiatives; In planning, it gives unified consideration of initiatives in Zhanjiang steel base positioning, synergy with existing base and clarifies Shanghai base, Meishan Steel base and Zhanjiang base's positioning and collaborative initiatives; It further improves corporate vision of advanced technology, environmental management and the mutual development of employees and enterprise; It clarifies the company's social responsibility and proposes the goal and initiative of joint development of employees, shareholders, suppliers and communities.
As for questions of building new material base and strengthening overseas layout which investors are concerned with, He Wenbo and Ma Guoqiang say that in the development of new materials, the company will first accelerate R&D and manufacturing of steel new materials and replace existing products with high-performance steel products; Secondly it will speed up to meet the needs of downstream users and carry out research and development and production in new non-steel materials. In overseas layout, it will further improve overseas marketing network and carry out substantial overseas steel base construction. Thirdly, it will form product manufacturing base which the company specializes in within global steel market and realize the company's international strategy. They says that in exploring steel industry technology breakthrough, there will be harvests as well as twists and turns, but they will always find ways to ensure the maximum protection of the interests of investors. Stainless steel and special steel assets trading case has been implemented and Luojing assets overall disposal program is taking shape. They will maximize the use of each asset as far as possible. After Luojing region stops iron and steel production, new business models are also in planning and formation. These advances will be reported and announced to investors gradually.
As for steel industry overcapacity which the investors worry about, He Wenbo and Ma Guoqiang say that Baosteel is still optimistic about the prospects of China's iron and steel industry, and after 30 years of development Baosteel has formed its own core competencies in the steel industry and it has strong international competitiveness. As an enterprise, on the one hand, it will continue to strengthen the advantages in varieties, including strengthening service system, try to create competitive products and maintain and even improve product gross profit; On the other hand, it is necessary to strengthen management, continue to implement cost improvement and enhance cost competitiveness. As the leader of China's iron and steel enterprise, it will actively implement "four batches" requirements in resolving capacity proposed by CPC Central Committee, including the implementation of Shanghai Wusong region steel industrial restructuring. This year, Baosteel will continue to adhere to customer-centric operating mechanism and through service capacity, manufacturing capacity and R & D capacity improvement, improve the proportion of high value-added products. At the same time, the company will continue to control all kinds of costs and expenses.
As for production safety which investors are concerned with, He Wenbo and Ma Guoqiang say that Baosteel has made efforts, strengthened monitoring and fulfilled the responsibilities in significant safety hazards investigation, major hazard management. At the same time, it further strengthens grassroots work, especially standardized operation and effectively forms "I want to be safe" atmosphere in the company.
