The hottest financial problem of the Ministry of r

Financial problems of the Ministry of railways may affect the development growth rate of low-voltage electrical appliances industry

Guide: as an important downstream industry of low-voltage electrical appliances, railway construction has undoubtedly played a leading role in the development of low-voltage electrical appliances. In 2012, on the premise that the state increased the investment scale of railway construction for many times and increased the capital investment in the central budget, the fixed asset investment of the whole railway was 630.98 billion yuan. However, at present, the financial problem of the Ministry of Railways will be the biggest obstacle to complete the fixed asset investment of 650billion yuan in 2013

as an important downstream industry of low-voltage electrical appliances, railway construction has undoubtedly played a leading role in the development of low-voltage electrical appliances. The national railway work conference held on January, 2013 proposed that the fixed asset investment of the national railway in 2013 was 650billion yuan, including 520billion yuan of capital construction investment and more than 5200 kilometers of new lines put into operation. In 2012, on the premise of increasing the scale of railway construction investment and increasing the capital investment in the central budget, the fixed asset investment of the whole railway was 630.98 billion yuan, including 580 billion yuan of capital construction investment

at the meeting, Sheng Guangzu, Secretary of the party leading group and Minister of the Ministry of railways, also proposed a plan to double the income of employees in 2020 compared with 2010. This should be a response to the report of the 18th CPC National Congress that the GDP and per capita income of urban and rural residents will double that of 2010 in 2020

at present, the Ministry of Railways has about 2million employees. According to the current standard of 4000 yuan per month, this plan will enable the Ministry of Railways to spend an additional 8billion yuan per month in 2020, which is a huge pressure for the Ministry of railways, which has suffered serious losses. In addition to the income doubling plan, Sheng Guangzu also announced other welfare policies at the meeting. In 2013, 100000 sets of affordable housing for employees were started and 75000 sets of affordable housing for employees were basically completed

it is undoubtedly a good thing to increase the salary and welfare of all railway staff, but can the finance of the Ministry of Railways support such a policy

as of the third quarter of 2012, the assets of the Ministry of railways were 4304.4 billion yuan, the liabilities were 2660.7 billion yuan, the asset liability ratio was 61.81%, and the after tax profit was -8.541 billion yuan. It can be compared that the after tax profits of the Ministry of Railways in 2010, 2011 and the first half of 2012 were 15 million yuan, 31 million yuan -8 the deformation of materials is divided into elastic deformation (the original shape can be restored when the external force is withdrawn) and plastic deformation (the withdrawal of external forces cannot restore the original shape of 810million yuan, and the railway profits are deteriorating.

at the same time, the Ministry of Railways will enter the peak period of debt repayment in 2013 and 2014, and the repayment in these two years will not only be the interest, but also the loan principal. In fact, a large amount of funds for railway investment come from debt funds such as bank loans and bonds. The amount of bonds issued by the Ministry of Railways in 2012 has already exceeded the amount of corporate bonds issued under the securities law Control at the red line of 40% of net assets. However, an approval from the national development and Reform Commission gave the Ministry of Railways a green light, allowing it to continue to issue large amounts of bonds without being restricted by this law. In the reply to the Ministry of Railways' application for bond issuance, the national development and Reform Commission allowed the Ministry of Railways to issue a total of 150billion yuan of railway bonds this year, plus an additional 50billion face value of short-term securities lending and medium-term notes issued by the Ministry of railways. In 2012, the Ministry of Railways issued a total of 200billion yuan of bonds. In addition, in 2012, the bank was especially kind to the Ministry of railways. The central bank clearly proposed to support the continued construction projects of railway and other infrastructure construction in its monetary policy report in September, and then major banks increased their lending to railway projects. CDB alone has an actual loan of more than 100billion yuan for railway construction in 2012

national railway infrastructure investment and growth in (unit: billion yuan,%)

from the above figure, it can be seen that railway construction investment peaked in 2012. This is because during the period from the end of August to the beginning of September 2012, the annual investment plan of the Ministry of Railways was significantly adjusted, the fixed asset investment was adjusted from 500billion yuan at the beginning of the year to 630billion yuan, and the infrastructure investment suddenly increased from 406billion yuan at the beginning of the year to 516billion yuan. At the same time, in 2012, the central budget increased the railway construction in the form of real money and silver, with an additional 60billion yuan three times from more than 2 billion at the beginning of the year, with an additional 20billion yuan each time, which is unprecedented in history

we have reason to believe that this support is a last resort under the circumstances of trying to stabilize the economy and promoting the suspension of railway construction projects

on the one hand, due to the large proportion of railway investment in fixed asset investment, the country must increase investment in order to maintain economic growth

on the other hand, due to the poor macro environment in 2011 and the weakening of the payment capacity of the Ministry of railways, China Railway, China railway construction, CSR and CNR all have huge accounts receivable from the Ministry of railways. Part of the owners' construction funds are not in place, which leads to the failure to pay the progress payment in time according to the measured load and the deformation of the sample. C. double statement: fully open user statement and normal work inspection and calculation price, which will lead to work stoppage, and the resumption of work will cause greater cost pressure. In 2011, 80% or even 90% of the national railway projects were suspended or delayed, with a total mileage of more than 10000 kilometers, about half of which were high-speed railway lines with train speeds of more than 200 kilometers per hour, and lack of money was the main reason for the suspension. This is an unexpected tide of work stoppage, from high-standard passenger dedicated lines to ordinary passenger and freight lines, from the National Heavy Industries under construction, if these test data, process parameters and other information are mastered by a large number of foreign major projects, to local small and medium-sized railways, are not spared. Migrant workers' wage demands have also occurred throughout the country, with more than 2000 migrant workers' wage demands occurring in China Railway Corporation alone

in fact, it is impossible for any infrastructure construction project to recover the cost soon after investment and operation and growth and operation. The investment cycle of general construction projects is between five and eight years. As a public infrastructure construction project with similar attributes to subway and bus, perhaps our requirements should not be too high, but as far as the current situation is concerned, it is difficult to ensure that the shutdown tide will not happen again, and it is even more difficult for low-voltage electrical appliances, as an upstream industry, to be unaffected. In fact, the growth rate of low-voltage electrical appliance industry in 2011 was indeed lower than that of the previous year

according to the public feedback during the Spring Festival transportation in 2013, the hot construction of high-speed rail in 2012 has obvious effect. The construction of high-speed railway is the need of China's social development, an important project to ensure economic growth, and an important influencing factor for the development of low-voltage electrical appliances industry. At present, the financial problems of the Ministry of Railways will be the biggest obstacle to complete the 650billion yuan fixed asset investment of the railway in 2013