Analysis On The Present Management Situation Of Hebei Iron And Steel Co.,Ltd Under The Background Of Overcapacity In The Iron And Steel Industry

Steel is one of the world's most important engineering and building materials, with the rapid prosperity of the real estate market and infrastructure industry and automobile industry, the demand of steel was got an explosive growth for a time. Macroeconomic downturn in recent years, The United States has been in a weak economic recovery after the subprime crisis.EU member states face sovereign debt crisis and Japan experience negative economic growth. As the world's largest economy, China is facing a slowdown in economic growth. In this context, the global steel industry demand was greatly reduced, the iron and steel industry overcapacity situation continued to deteriorate and the steel prices continued to decline. The income of steel enterprises declined, while the operating cost increased, resulting in a large number of steel enterprises facing bankruptcy crisis. The global steel market was declining.Hebei Province was the largest Province of China's iron and steel production capacity. At the same time, it is in the north of China which is very serious in pollution. Affected by the country's policy in the haze of governance and the steel industry to eliminate capacity, Hebei iron and steel industry is facing great challenges. Hebei Iron and Steel is one of the largest industrial enterprises in Hebei Province, at the same time it is one of the largest iron and steel enterprises. In recent years the industry of steel was in the period of winter, Hebei Iron and Steel remained profitable and continually expand the scale of enterprise. After Hebei Iron and Steel achieved the acquisition of the Swiss venerable, the world's largest independent steel trading business, and South Africa PMC, recently it acquired Serbia Steel for further expanding.This paper used ‘Hebei Iron and Steel' as the case of study object and explored its operating conditions when the iron and steel enterprises cut excessive industrial capacity. This paper use the financial analysis means such as Dupont analysis method and contrast analysis method to analyze the hidden information behind the financial statement. Firstly, it analyzed the overall and domestic status of iron and steel industry, and then concretely analyzed the assets and liabilities structure of “Hebei Iron and Steel”, such as profit and loss, cash flow performance and the ability of debt paying, profitability, operation, growth ability. Finally it puts forward some policy proposals with financial analysis conclusion, and puts forward some suggestions for domestic iron and steel industry in the production process.