Financial Analysis Of CG Iron & Steel Co.Ltd In Chongqing- A Case Study Under Harvard Analysis Framework

AS the core business of CG Iron and Steel Group Co., Ltd.(hereafter referred as CG Group), CG Iron & Steel Co.,Ltd.(hereafter referred CG shares) is a typical representative of Chinese steel companies. In recent years, the steel industry is facing a severe test. Under such background, combined with current macroeconomic environment and industry background, this paper used method of "Harvard Analysis Framework" to diagnose the financial condition and management problems of CG shares. The research was based on financial data from 2009-2013 of CG shares from a strategic level, an accounting level, financial level and a forecast level. At the end of the paper we proposed some applications based on those four aspects. The purpose of this paper is to analyzing the business performance of CG shares through Harvard analysis framework. Besides, there are some practical meanings for improving the management of CG shares.By strategic analysis, we found problems such as single ownership structure, inappropriate strategic initiatives etc., and then proposed applications such as reforming property structure, speeding up industrial restructure, improving higher value products, and developing new area of land etc. By accounting analysis, we found the information disclosure quality of CG shares is not high.To solve this problem, we suggest increasing the transparency of information disclosure, and strengthening internal control. By financial analysis, we found that CG shares had poor profitability, solvency, operation ability, and bad cash flow management. To solve those problems, we raised applications such as lowering costs, improving capital structure and asset management efficiency. By analysis of the prospect, we found it’s difficult for CG shares to change the fate of the loss in the short-term. But in the long run, we believe the enterprises will have many development opportunities, the release of new district energy is just around the corner. CG shares and the entire steel industry influenced by macroeconomic volatility, only do the companies enhance their risk awareness, and comply with the industry trends to choose proper competitive strategies,can they avoid being eliminated by the economic cycle fluctuations.