President's Speech---New Challenge in Chinese Steel Industry

In 2015, the Chinese steel manufacturers faced double challenges. On the one hand the economic slowdown lead to decreased demand domestically and a historical low price in the market. On another hand the web internet and mobile internet had changed steel industry in China. Internet has a deep influence on the marketing, R&D, production, logistics and business management almost every aspects in steel industry. Nowadays, steel manufacturers have to adapt to the economic slowdown and also the changes of technology.

In order to face the double challenges, there are five comments brought up by our president:

1. Sense of Crisis. It is very necessary to be prepared for any emergency, such as economic slowdown, decreased market demand, decreasing market price ect.

2. Pay attention to the corporate management. Try to find a balance among profits, cash flow, future development. Only the profitable enterprises have the confidence to invest future development and professionals. Only the healthy and sufficient cash flow create the possibility to get through any economic slowdown or unstable market demand.

3. Improve the ability to innovate. The world is changing, technology changes the way to do business. Therefore, enterprises should innovate in various places, such as new products development, customer services innovation, new technologies applied in production ect. Innovation is the only way to maintain the prosperity of a enterprise, experiments will always lead the company pass through any challenges.

4. Optimize and enhance a unique business mode. Unique business model means the most suitable business type that competitors can not take away from you.

5. Fully embrace the Internet. Taking advantages of the new technolgoy to change the way we communicate.


ADIPEC 2015 Abu Dhabi International Petroleum Exhibition and Conference

ADIPEC, referred as the Abu Dhabi International Petroleum Exhibition and Conference, is one of the world's most influential Oil and Gas exhibition and conference. The first ADIPEC was hold in 1984 in Abu Dhabi, after that the country decided to hold this big event every two years. With the fast developing of the international oil and gas industry, the attendees keep growing. In 2010, there were 1502 companies attend in this exhibition, and over 45597 company decision makers from 91 different countries. In order to meet the attendees' needs from different countries, the exhibition space kept expanding. In 2013, the ADIPEC had became an annual event to welcome more attendees internationally.

ADIPEC is held under the patronage of the President of the United Arab Emirates, His Highness Sheikh Khalifa Bin Zayed Al Nahayan, and organized by DMG. It has become the largest exhibiton for Middle East Oil and Gas industry. It is supported by Abu Dhabi National Oil Comapny (ADNOC) and the UAE's Ministry of Energy. Every Novermber, AIDPEC will have a strong focus on oil and gas, reflecting its increasing share of the global energy mix and heightened regional oil and gas demand for power generation.

In 2015, the latest ADIPEC was hold during November 9 to 12. There were over 95,555 attendees from different countries and over 130,000 gross exhibition space opened in this exhibition. At this event, visitors could see more than 1600 local and international oil and gas companies, hear from 306 regional and international spearkers at the regions largest conference, and also network with more than 4000 delegates and 45000 attendees. Moreover, this is a good chance for people in the oil and gas industry to learn knowledges and updated technologies through 4 days of technical sessions, panel sessions, and executive sessions. It is a very good opportunity to expand business with the largest gathering of NOC's and IOC's in the Middle East.

Attending ADIPEC is one of the influential brand marketing strategy to increase industry recognition internationally. In this year, Shinestar Holdings Group decided to join this big event and present our professional team and quality products in front of our potential clients internationally. During this significant event, we have increased our brand awareness, meet potential clients face to face, create more cooperating chances with clients from different countries.

Chinese Steel Industry in the next 12 month

"In the next 12 month, the Chinese steel market will be in a further deterioration situation due to the weak domestic demand in China."Moody's Investors Services Company said. Under the situation of economic slowdown in China, the investment development of real estate and infrastructure has slowdown, and also the steel manufacturing is still weakening. In addition, due to the decline rate of eliminate production capacity is slower than the rate of deceleration in demand, the profitability for Chinese steel manufacturers will be further weakened. The slowdown of domestic demand exacerbated the over capacity situation in Chinese Steel Market which lead to the Chinese steel pirice fell to the historic low.

Moody expect that in the next 12 months, Chinese domestic steel demand will decline 5%. Although the export growth can release part of pressure created by the falling domestic demand, the overall sales in the steel industry will continue to decline 3% to 4%. Due to the fall in raw material prices are no longer able to offset the steel price decline in the maket, according to the Chinese Iron and Steel Industry Association, in 2015 the profit of medium-sized steel companies has to face a loss in the previous 8 month. However, many companies keep struggling by halting production and selling other assets, which slowdown the process of reducing the production capacity in the market.

Overall, many small companies will be the first batches exit the steel market due to the financial pressure and limited resources. Moody's believes that in the next 1 to 2 years the production capacity will keep reducing and the restructuring process will keep accelerating. However, Baosteel Group Corporation, Shinestar Holdings Group and other leading companies will gain more market share due to their product strength and capacity expansion.