GANSU JIU STEEL GROUP HONGXING IRON & STEEL CO,LTD.Financial Statements Analysis

After suffering of the financial crisis, entity economy such as manufacturing business has been restored through its own development whereas the challenges that they facing is excessive and tough because of the still- sluggish economic resurgence. O ur pillar industries-iron and steel industry is also experiencing a financial crisis after a long "winter".As an important listed steel company in the western region, GANSU JIU STEEL GROUP HONGXING IRON & STEEL CO,LTD. is being tested in the tough market environment. The profitability of the company in recent years is not ideal. Further more, an huge loss o f 3.5 billion has been occured in the 3rd season this year, which victimized the company on the top list of deficit in all listed company. As a matter of that fact, Financial diagnosis should be essentially implemented and effective actions should be taken in order to rectify the condition of both financial and management.Financial diagnosis is the process that using scientific methods and procedures to identify corporate financial management problems by making objective analysis, evaluations and suggestions that the enterprises implement, which is of extreme significance in both theoretical and practical.This paper studies the case of GANSU JIU STEEL GROUP HONGXING IRON & STEEL CO,LTD.. The analysis of the company’s industry and current condition should been built to identify the existing problems of the financial activities, further more, a financial analysis tool is used to analyse the financial condition of the company, mainly through the structural and tendency analysis method to analyse the company’s financial statements for 2010-2014 and index analysis method to analyse the company’s financial capacity in recent years, including solvency, operational capacity, profitability and development capacity, in this way, a comprehensive financial analysis is built to evaluate the financial status of the company and help the company identify business risks and financial risks. Finally, based on the analysis and diagnosis conclusions, the problems of the company have been summed up and recommendations that could optimize management and improve enterprise efficiency have been put forward.