Li Guangyuan was consulted on the suspect of cable star

Sichuan Star Cable Co., Ltd., which is not well-known in the capital market (hereinafter referred to as “star cable”), is being pushed by the outside world because its chairman, Li Guangyuan, has fallen into the “disaster storm”.

On the afternoon of July 25, the star cable announced that it was unable to contact Li Guangyuan. Affected by the news, the resumption of the star cable on the 26th opened sharply lower. As of 9:37, the stock price fell 8.16%. Earlier, it was reported that Li Guangyuan had been taken away by the relevant authorities due to his close ties with Guo Yongxiang, the chairman of the Sichuan Wenlian that was being investigated.

According to the reporter's understanding, in fact, in the cable field, the star cable is a veritable "star" company. Due to its deep resource advantages in petrochemical and other fields, the development of the star cable in recent years can be said to be smooth. It is precisely because of this that high-level shocks have also added a lot of uncertainty to the future development of this company.

Consultation

Dong Jiang, director of the star cable Jiang Xiangdong told reporters that the company is currently "normal production and operation, the incident has not yet affected the normal operation of the company."

On July 31, Leshan City, located in southern Sichuan, was surrounded by summer heat. The star cable factory area in the turmoil of the "chairman's acceptance of assistance investigation" is still calm.

In the factory area of ​​Leshan High-tech Zone Star Cable Company, the reporter saw that production workshops are still in production. Regarding Li Guangyuan's rumors of accepting the “assistance investigation”, the company’s director secret secretary Jiang Xiangdong told reporters that the company’s current “production and business conditions are normal, and this incident has not affected the normal operation of the company and the sentiment of the employees is also very stable”. Jiang Xiangdong said that at present, the company has not received a notification from the relevant department, but confirmed that "it is currently unable to contact the chairman".

Star cable prospectus shows that three years before the listing, the performance of star cable is quite dazzling: 2009-2011 cable operating income were 920 million yuan, 1.19 billion yuan and 1.33 billion yuan, respectively, revenue growth of 7.51%, 30% and 11.71%.

From 2009 to 2011, the star cable realized a net profit of 988 million yuan, 105 million yuan and 133 million yuan respectively, corresponding to an increase of 23.29%, 6.59%, and 26.55%. The net profit for the same period maintained a steady increase.

However, the performance of star cable after listing in 2012 was not as good as before listing. Star Cable's 2012 annual report shows that in 2012, star cable realized revenue of 1.15 billion yuan and net profit of 83 million yuan, which was 13.32% and 37.47% lower than 2011 respectively.

The star cable attributed the decline in performance to the following: “The economic situation at home and abroad has continued to be sluggish and growth has been sluggish.”

The rise of "star"

Like company names, Li Guangyuan is also called a "star" in his hometown.

Li Guangyuan was born in Gaogou Town, Wuwei County, Anhui Province in October 1975. This is the hometown of cables. Many young people are on the road to cable sales. Li Guangyuan is no exception, he started a cable sales salesman.

In 1993, 18-year-old Li Guangyuan went out to fight; 10 years later, the 28-year-old Li Guangyuan founded Sichuan Star Cable Co., Ltd. Since the transformation, its speed of development has been a miracle.

At the end of 2004, the output value of star cable in the first year of transformation reached 200 million yuan. According to media reports, orders for the star cable came mainly from local telecommunications and petroleum systems.

In 2005, Li Guangyuan invested 350 million yuan to establish Anhui Star Cable Co., Ltd. in Gaogou Town, Wuwei County.

In 2006, the star cable has developed into a high-tech enterprise integrating the design, development, production and service of special cables in the southwest region with more than 1,000 employees and an annual sales value of nearly RMB 1.2 billion.

In 2012, the star cable was listed on the Shanghai Stock Exchange. According to the stock price at that time, Li Guangyuan, 37, was worth more than 1.3 billion yuan. It is understood that Li Guangyuan holds a 62.6% stake in Star Cables and is a controlling shareholder. Suzhou Zhouding Jiuding Investment Center and Loyalty Trust Co., Ltd. ranked second and third largest shareholders with a shareholding ratio of 4.9% and 1.03%.

Like company names, Li Guangyuan is also called a "star" in his hometown.

In the areas where Wuwei County Xingou, Yaogou, Gaogou and other cable factories are concentrated, Li Guangyuan has a very good reputation. On November 9, 2009, a local cable practitioner also wrote a blog to call Li Guangyuan his idol.

At present, most of the business of star cables are closely related to central enterprises such as PetroChina, Sinopec, CNOOC, Datang Group, and Huaneng Group. The star cable prospectus shows that the company is the largest supplier of CNPC's 2010 network procurement. The "Sichuan Star Investment Report 2012" also mentioned that "the company's main customers of special cables are concentrated in key state-owned enterprises such as petrochemicals, and it is the ranking of China National Petroleum Corporation's "Signal Cable Centralized Purchase Project of China National Petroleum Corporation" in 2013. The first Class A supplier."

Founded in March 2001 at the Zipingpu water conservancy project in Dujiangyan, Star Cable has long provided special cables for it. It is this project that allows the outside world to associate Li Guangyuan with the Sichuan Wenlian Chairman Guo Yongxiang, who has just fallen. After becoming the deputy governor in January 2006, Guo Yongxiang took charge of Sichuan Provincial Department of Water Resources. Guo Yongxiang worked in the petroleum system for 26 years and served as the deputy director of the Research Office of China National Petroleum Corporation. However, for the direct relationship between Li Guangyuan’s “disappearance” and Guo Yongxiang, the star cable is not clear.

"Standard field" situation

“According to profit and various operating expenses, we should increase the cost of materials by 20%~25%. The winning service fee is usually 0.7%~1% of the standard cost, and the installation and transportation costs are also It will account for 3% of the target cost, plus the costs of personnel salaries, utility bills, management fees, etc. The bid price should be increased by 20% to 25% on the basis of the total amount of accounting materials, plus at least 15% for capital preservation.”

A good customer relationship is a stepping stone for the star cable to open the market, but it still needs to follow the business rules to get the business.

According to professionals, the cable consists of a copper core, insulation, sheathing, refractories and fillers. The most expensive raw material is a copper core. The copper core accounts for about 85% of the target amount. The cost of various auxiliary materials such as insulation, sheathing, and filling is low, but they add up to about 10% of the total cost.

According to the report of the “Low Density Tendering” of Datang Cables on June 3rd, 2013, in the data section of the 1~3kV cable II of the Datang Group Hushan Power Plant (JCPS-CWEME2012-DL071) The bid for the pre-winning bidder Anhui Hongyuan Special Cable Group Co., Ltd. was only RMB 15,001,200, and the bidding price of Sichuan Star's cable was RMB 15,970,400. The total quota of materials calculated by third-party agencies according to the "national standard" for the production of all the components of the cable product should be 18.7348 million yuan. In other words, Anhui Hongyuan’s offer is lower than the 20% of the total fixed price of 18,734,800 yuan. The price of Sichuan Star Cable is less than 15% of the total price of the material quota.

For example, a cable product with the model “ZRC-YJV-0.6/1.0” and the specification “4×35+1×16” is required in the bid section. Through the label, the company will understand that this is a With flame retardant (ZRC), insulation (YJ) and jacket (V) products, the total cross-section of the product is 156 mm. Calculated according to the required product length of 200 meters, the required weight of copper can be calculated as " Total cross-sectional area x length x copper specific gravity (8.9), ie 277.68 kg. Even if the price of the futures copper is lower at a price of RMB 57/kg from a certain period of time, the price of copper required for conductors is also 15,827.76 yuan.

"And so on, the total price of the conductor copper needed to calculate all models and specifications of this tender is also 17,219,500 yuan. The total price of the optical copper material exceeds the percentage of the total winning bid of the current successful enterprise of 150.1212 million yuan. Ten of them.” Earlier, Beijing Cangzebang Information Technology Co., Ltd. and Zhong Jie Online Director Zhong Jie told reporters.

In fact, the material cost is only one aspect of the cost. In the production of the enterprise, there is also the material loss, working hour cost, production cost, management cost, financial cost, sales expense, corporate profit rate, as well as the package transportation cost of the subject matter and the bid winning service fee. Other reasonable expenses.

“According to profit and various operating expenses, we should increase the cost of materials by 20%~25%. The winning service fee is usually 0.7%~1% of the standard cost, and the installation and transportation costs are also It will account for 3% of the target cost, plus the costs of personnel salaries, utility bills, management fees, etc. The bid price should be increased by 20% to 25% on the basis of the total amount of accounting materials, plus at least 15% to ensure capital preservation. The successful bidder also needs to set aside 5% of the total price as a sales commission, Zhong Jie said.

"Special" suspicions

Insiders believe that there is no so-called special cable. In the industry, the so-called special cable concept is very vague and there is no corresponding standard.

For the main business of the star cable, special cables, the outside world also showed doubts.

According to Jiang Xiangdong, star cable is a technology-based manufacturing company specializing in special cables. The sales revenue of special cable products accounted for nearly 90% of the company's main business income, while the remaining portion mainly came from high-end civilian cables.

However, in view of some people in the industry, there is no so-called special cable. Wang Han, marketing manager of China Wire and Cable Association, told reporters that in the industry, the so-called special cable concept is very vague and there is no corresponding standard.

Jiang Xiangdong told reporters that special cables are a series of products with special processes and structures. Compared with ordinary wires and cables with a large amount of output, special cable technologies have a relatively high technological content and many types of doors, but the production volume is small. Special cables can be broadly classified into high-temperature, low-temperature, acid and alkali-resistant, nuclear power, wind power and other wire and cable applications and special wire and cable structures, as well as new types of green insulated green wire and cable. “The characteristics and requirements of the special cables required by each industry and each company are different, and there are many types of special cables. Therefore, they must be customized according to the specific needs of each customer. The added value of the products is high, but the output of a single product is higher than There are fewer common standard cables, and the company is on a production basis and will not have inventory. Because specialty cables have much higher product quality and technical requirements than ordinary cables, there are technical and qualification thresholds in this area."

It is understood that the 2012 annual operating revenue of special cables produced by star cables is RMB 1.024 billion, accounting for 90% of all cable sales revenue.

However, according to Liang Yuzheng, deputy secretary-general of the Guangdong Cable Association, for bidders, there is no concept of special cables, but bids are made according to the corresponding model specifications.

Whether it is from the company's founder culture or centralized ownership control (62.6% of Li Guangyuan's shareholding), star cable has long been marked with the stigma of Li Guangyuan. With Li Guangyuan under control, the "money pass" of star cables is also full of uncertainty.

According to this estimate, the bid price of the Hushan Power Plant project bidder should be at least 21.5 million yuan to meet the common sense, but the price of the successful bidder is more than 6 million yuan lower than the “maintenance price”.

In addition, according to the reporter’s interview in the field, the Anhui Hongyuan Special Cable Group Co., Ltd. automatically gave up. According to the rules, the Sichuan star was postponed as the “winner”.

For external doubts, Jiang Xiangdong, the director of the star cable, admits that “this project is selling at a loss, but it is only a temporary strategy.”

However, according to investigations, this kind of ultra-low-price bid has been used more than once by star cable. On June 7, 2013, Datang Group's cable procurement project was opened at Beijing Nanyueyuan Hotel. In this quotation of the instrument cable named Inner Mongolia Keqi Coal Gas Project, the Sichuan star cable only increased the price by 10% on the basis of the total fixed price, still lower than the reasonable quota range of plus 15% above the total fixed price. .

Extended attention to the chaos of the cable?

How to recover costs for ultra-low bidders?

Wang Han, marketing manager of the China Wire and Cable Association, said that there are tricks in the ultra-low bids. Many successful companies adopt "non-standard". The so-called "non-standard" means that it does not produce according to national standards and it achieves profit by lowering production standards.

Star cable director Dong Jiang told reporters Xiangdong Xiang, in the Datang Hushan Power Plant bid, the star cable is indeed "losing money to do business, but there is no quality problem." According to Jiang Xiangdong, the implementation of the Datang Hushan Power Plant project has been “half over and progressed smoothly”.

However, in the opinion of industry experts, this ultra-low bid has hidden risks. Gu Liaohai, a government procurement expert and chief partner of Beijing Liaohai Law Firm, told reporters: “Before you defeat competitors, you enter the successful supplier team, and then negotiate with the purchasing department during the contract implementation stage. If such goals cannot be achieved, then It may be possible to make products shoddy, and from the audit report of the past year, it is very common for the parties to negotiate the additional contract amount during the performance phase of the contract."

According to a report from the Cable and Wire E-Commerce Platform in Cable Online, over 80% of the companies in the cable bidding process adopted the “lowest bid”, even for large companies with the “national” prefix.

There are currently nearly 10,000 cable manufacturers in China and the cable industry has an overall excess capacity. Wu Shimin, deputy secretary-general of the Electric Wire and Cable Branch of the China Electrical Equipment Industry Association, said in an earlier interview with reporters that the current cable bidding system is an incentive for low prices in terms of actual results.