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Facts Stated in Annual Report Revealed How Japanese Steel Products Were Driven out of China Market Through Stealing

The 2020 annual report of CITIC Pacific Special Steel Group Co., Ltd.(中信泰富特钢集团股份有限公司) verified by Cninf(巨潮资讯网) stated: CITIC Special Steel's main products are alloy steel bars, wires, special steel plates, special seamless steel plates, etc. Over 89% of its revenue in 2019-2020 comes from foreign countries. The overall gross profit margin is 17.97%, and domestic 18.51%. High-reliability die-casting and electroslag bearing steel under extreme environments(极端环境下高可靠性模铸及电渣轴承钢)occupy more than 80% of the domestic market of world-renowned bearing manufacturers and are used in offshore wind turbines of 6 MW or more, 11-meter diameter shield machines and other fields.

The superalloy spinning tube is used in the "Beidou"(北斗) network.

There are many varieties such as 300M for aviation landing gear, D406A for aerospace engine casing, and special stainless steel for aero engine compressor blades.

The company’s 2.25Cr1Mo material has been successfully applied to core key components such as the steam generator heat exchange tube of the fourth-generation nuclear power sodium-cooled 600MW demonstration fast reactor project(核电钠冷600MW示范快堆工程蒸汽发生器换热管).

The world’s first road-rail dual-purpose cable-stayed bridge -- The main cable of the Shanghai-Sutong Yangtze River Bridge uses CITIC Special Steel’s 2000MPa world-leading wire rod for ultra-high-strength cable steel wire; The Long March 3A,, which sends Beidou network satellites, uses  materials Daye Special Steel develops. It is studying materials D406B for aerospace and 300M for aerospace.

 The sales volume of special steel materials for defense equipment to Chinese People's Liberation Army increased by more than 40% in 2020, and the production and sales of Qingdao Special Steel's military special welding and automotive standard parts nearly doubled and tripled in 2020 compared to 2019, respectively. It successfully developed 2060MPa-class ultra-high-strength salt bath wire rods for bridge cables, bearing steel for shield machines, high-temperature and corrosion-resistant alloys, etc., to meet the key needs of defense equipment, aerospace, etc., and high-strength and toughness screw drill pipes(高强韧性螺杆钻具用管) to replace Japanese imported materials , hurting the Japanese economy.




The top five customers of CITIC Pacific Special Steel Group Co., Ltd. include related parties Hubei Xinye Steel Co., Ltd. 1.86 billion, CITIC Metal Co., Ltd. 750 million, the top five suppliers include SINO IRON PTY LTD. 4.87 billion, CITIC Pacific Special Steel International Trade Co., Ltd. 3.47 billion, CITIC Metal Co., Ltd. 2.17 billion.

Yue Zhang(张跃) is an independent director of CITIC Special Steel and a professor of University of Science and Technology Beijing. He has been funded by Anthony Mason Fellowship, JSPS and China Scholarship Council for visiting research at the University of New South Wales, Tohoku University, Tokyo University, Tokyo Institute of Technology, Osaka University, Kyoto University, and Georgia Institute of Technology. He is Member of the Expert Group of "New Military Energy Technology" of the PLA's Central Military Commission, Fellow of the Royal Society of Chemistry of UK.



JSPS is the abbreviation of Japan Society for the Promotion of Science.  Wenxin Xie, vice president of CITIC Special Steel and general manager of Daye Special Steel, is currently the director of Hubei AVIC Steel Special Steel Sales Co., Ltd., which is affiliated with AVIC. This means that the CCP's military directly supervises the production of military products in the name of general manager and group vice president. CITIC Special Steel's ultimate controller, CITIC Group, could also obtain technical information from other companies when doing finance. The CCP actually allows such a serious conflict of interest in the financial industry.

Mixed operation: Under the condition of the limited loan amount and the same credit quality, should it be given to related parties or non-related parties first? Should the interest rate be more favorable for oneself? Violating the rights and interests of minority shareholders of banks? How can financial companies ensure that the customer information they obtain is not used for their own operations? How to objectively evaluate the credit quality of related parties (self-evaluation threats) and how to avoid risk contagion in times of crises?

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