Linyi Iron and Steel International Trade Co., Ltd. is a wholly-owned subsidiary of Linyi Investment Development Group Co., Ltd. (abbreviation: Investment Development Group). The company's paid-in registered capital is 200 million yuan, and its registered place is Linyi Comprehensive Bonded Zone. As of December 2021, Lingang International Trade has achieved an operating income of 770 million yuan.
On April 18, 2019, Linyi Mayor Meng Qingbin presided over the 44th executive meeting of the municipal government. At the meeting, Mayor Meng pointed out that "we must expand import and export, and sort out the import and export data of bulk commodities one by one", "in foreign trade agency and financing. To achieve mutual benefit and win-win in credit granting.” In order to implement the spirit of the meeting, focus on the development of foreign trade and cooperate with the construction of Lingang Iron and Steel Industrial Park, Linyi Iron and Steel International Trade Co., Ltd. (hereinafter referred to as: the company) was officially established on July 2, 2019, and its registered place is Linyi Comprehensive Bonded Zone. As a trade-oriented enterprise, the company's import sector mainly covers bulk trade varieties such as iron ore, cement, rapeseed oil, corn, and timber, and its domestic trade sector mainly includes steel, corn, rice and other varieties. The company has entered into a number of mainstream trade chains to complete Industrial Distribution. The company won the title of "Top Ten Import and Export Enterprises" in Linyi Comprehensive Bonded Zone in 2020 and 2021.
On May 29, 2020, Mayor Meng Qingbin gave the "Report of Linyi Municipal Bureau of Commerce on Going All Out to Stabilize Foreign Investment and Foreign Trade" with instructions to "continue to keep an eye on it", and made the requirement to "stabilize the fundamentals of foreign trade and foreign investment". The achievement of foreign investment and foreign trade has become the core indicator for evaluating the work of the municipal government. In order to cooperate with the construction and operation of Special Steel Company in Lingang Iron and Steel Industrial Park of our city, Lingang International Trade undertakes the import and procurement of raw materials and auxiliary materials such as iron ore and nickel ore. The company focuses on the main business of black varieties and actively cooperates with the implementation of foreign trade work in combination with the situation in our city.
Linyi Investment Development Group is an investment and financing platform and a municipal capital operation institution established earlier by the Linyi Municipal Government. Originally established as a county-level institution, it is affiliated to the Development and Reform Commission of Linyi City (formerly Linyi City Planning Commission). In May 2002, it was restructured with the approval of the municipal government and changed to "Linyi Investment and Development Co., Ltd.", which is a wholly state-owned company and a municipally managed enterprise. After the establishment of the Municipal SASAC in February 2005, it was placed under the supervision of the Municipal SASAC. In September 2019, it was approved by the Municipal SASAC to form Linyi Investment and Development Group. The registered capital of the group company is 526 million yuan. As of the end of August 2019, the total book assets reached 26.7 billion yuan and the net assets were 10.7 billion yuan. From January to December, the main business income was 1.7 billion yuan, the tax was 190 million yuan, and the profit was 140 million yuan. Investment Development Group mainly performs the functions of urban infrastructure construction, land development, state-owned asset management and operation, and has invested and financed nearly 20 billion yuan in key projects such as Linyi Airport, Linyi University, Beicheng New District, and Binhe Avenue.
In 2021, the revenue of our company's domestic steel trade sector will be 404 million yuan. The iron ore foreign trade segment imported a total of 306,000 tons, including 135,000 tons of Indian powder, 171,000 tons of Brazilian coarse powder, and the foreign trade iron ore segment revenue was 157 million yuan.
In 2021, the corn purchase volume of the domestic trade sector will be 8,707 tons, and the domestic trade corn revenue will be 22 million yuan. The foreign trade segment realized the import of 60,000 tons of corn, 35,000 tons of distiller's grains, and 3,000 tons of soybeans, and the revenue of the imported raw grain segment was 132 million yuan.
Lingang International Trade avoids and reduces trade risks by analyzing and judging national policies and market conditions, and uses the advantages of state-owned platforms to establish a sound management and control system for business risks to ensure the preservation and appreciation of state-owned assets.
In the early stage of trade cooperation, the company has a complete analysis and research process such as industry evaluation, due diligence of cooperative enterprises, and evaluation of the same industry; in the middle stage of trade cooperation, the company has internal risk control departments, shareholders meetings, etc. Deposit, foreign exchange deposit and foreign exchange lock system; in the later stage of trade cooperation, there is a mature control and release system and payment and tax settlement system.
