Research On The Profitability Of Shandong Iron And Steel Based On The Conversion Of Old And New Kinetic Energy

In 2015,Premier Li Keqiang first proposed the conversion of old and new kinetic energy.In 2017,he also proposed that Shandong Province will play a leading role in the conversion of old and new kinetic energy.Shandong Iron and Steel,as a large-scale listed steel manufacturing company in Shandong Province,its business development is not only important to the economic development of Shandong Province.Significant impact,its profitability will also be affected by the relevant policies of the new and old kinetic energy conversion pilot zone.In the context of Shandong Province starting the new and old kinetic energy conversion strategy,based on the principal-agent theory,the financial management theory and the stakeholder theory,this paper adopts the Du Pont analysis system to analyze the profitability of Shandong Iron and Steel before and after the new and old kinetic energy conversion.The comparative analysis of the industry and Baosteel,Shougang and Ansteel shows that Shandong Iron and Steel has benefited from the advantages of the conversion of old and new kinetic energy,and its profitability has been improved to a certain extent after the conversion of old and new kinetic energy is started.Based on the analysis of the above data indicators,further from the four aspects of gross profit margin,cost control,financial leverage and intangible assets to study the problems existing in Shandong Iron and Steel’s profitability after the start of the conversion of old and new kinetic energy;and then explore the corresponding causes of the problems,respectively : Unreasonable strategic deployment,high cost of raw materials and fuels,high cost of capital use,and low R＆D efforts.Four aspects such as large-scale research and development efforts are expected to shed light on the future development of Shandong Iron and Steel and other enterprises in the iron and steel industry.