What happened when two thousand tons of foreign salt was detained by Jiangsu?

On April 11th, the media reported that China National Salt Shanghai Company sued Jiangsu Salt Bureau and asked the court to rule that a document previously issued by the bureau was illegal.

This document refers to the Notice of Jiangsu Salt Administration Bureau on Publishing the List of Salt Enterprises Suspected of Illegal Operation in Jiangsu Province.

On March 15th, Jiangsu Provincial Salt Bureau issued a notice, and Zhongyan Shanghai and Tangshan Jampel Tang Salt Industry were listed as unqualified product enterprises, while Zhongyan Dongxing, Zhongyan Haolong and Jiuda (Yingcheng) were listed as illegal salt companies.

Afterwards, China National Salt Shanghai and other companies issued statements saying that they all operated salt across regions in accordance with relevant regulations, and accused Jiangsu Salt Bureau of local protectionism, "in the name of food safety, local protection is a reality."

find the relevant operating data of Jiangsu Salt Industry Group. Through these data, we can get a glimpse of a monopoly and closed salt state-owned enterprise.

Jingshen Salt Chemical, a subsidiary of Suyan Group, was listed in January last year

"The local salt administration first asked us to put on record and said that the procedures were ok, and then asked us to inform the warehouse address. As a result, a few days later, they went to the warehouse to investigate and took away 1447 packets of edible salt. " Zhang Xiuzhong, deputy director of Jiangsu direct sales office of Hubei Guangyan Lantian Salt Chemical Co., Ltd., told the company secret.

According to the materials presented by Blue Sky in Hubei Province, on the evening of January 17th this year, a warehouse in Taicang, Suzhou was opened by Taicang Salt Administration Bureau together with the local public security, and 28.94 tons of edible salt was taken away, which was sampled for evidence collection and registered for preservation in advance.

Taicang Salt Administration Bureau issued a notice of salt administration enforcement on the spot, on the grounds that it violated Article 16 of the Regulations on the Administration of Iodized Salt to Eliminate the Harm of Iodine Deficiency, that is, iodized salt sold in iodine-deficient areas must reach the specified iodine content.

According to the inspection report of Hubei Salt Product Quality Supervision and Inspection Station provided by Hubei Lantian, the iodine content of its salt products is within the qualified range. "Our iodine content standard is 18-33mg/kg, and there is a qualified inspection report."

On March 14th this year, Taicang Salt Administration Bureau seized 28 packages (2kg/ package) of refined iodized salt in Lantian, Hubei Province, for violating Article 14 of the Measures for Salt Monopoly.

This regulation means that "salt retail units should buy salt from local enterprises that have obtained salt wholesale licenses". However, Zhang Xiuzhong said that this reason of Taicang Administration Bureau is not valid. According to the salt reform document, retail units and users can buy salt from qualified enterprises in other places, so the word "local" is not applicable, and they have already obtained the local salt wholesale license.

Zhang Xiuzhong told the company secret that by the end of March, nearly 5 tons of edible salt in Lantian, Hubei Province had been seized in Jiangsu Province, with hundreds of seizures. "All the salt seized has not been returned, and the economic loss has reached more than 2 million."

"According to incomplete statistics, after New Year's Day this year, our company was detained for 72 times in cities and counties in Jiangsu Province, about 7 tons." On April 5th, Wang Maokui, deputy general manager of China National Salt Dongxing Marketing Corporation, told the company the secret.

company secrets according to public reports and relevant statistics provided by enterprises involved, since January, foreign salt has been seized in more than eight provinces, including Jiangsu, Hubei, Guizhou and Henan. * * * Eight salt companies, including Zhongyan Shanghai Company, Zhongyan Dongxing Company and Chongqing Salt Industry Group, have been detained by local salt industry departments for more than 2, tons of goods, and some salt companies have been seized for hundreds of times.

according to the reports of many salt enterprises, they encountered the situation that the warehouse was seized by breaking the door and the truck was equipped with a locator. And the seizure location varies from the salt enterprise warehouse to the terminal retail point, and the seizure methods include first registration and preservation, and some of them are directly confiscated.

in the chain of salt enterprises seized in different places, many enterprises directly under the local salt administration and even subsidiaries of central enterprises were detained by the local salt administration in the process of inter-provincial operation.

On March 13th, Jiangsu Salt Administration Bureau issued the Notice on Publishing the List of Enterprises Suspected of Illegal Operation of Salt in Jiangsu Province, which pointed out that five companies, including Zhongyan Shanghai, Zhongyan Dongxing, Zhongyan Zirong Salt Chemical, Jiuda (Yingcheng) and Tangshan Jampel Tang Salt Industry, were accused of illegal operation of salt in Jiangsu Province.

The document states that the listed enterprises that deal in salt in violation of laws and regulations shall be instructed by the local Salt Administration Bureau to carry out rectification for six months, and the salt sales and operation activities can be continued in Jiangsu Province after the rectification period. The document shows that the issuer is Yuxiang Tong, director of Jiangsu Salt Administration Bureau, who is also the chairman of Jiangsu Salt Industry Group Corporation.

Subsequently, four salt enterprises, including China National Salt Shanghai, issued public statements one after another, claiming that the company's business activities complied with the relevant provisions of the national salt reform. It is listed as an illegal business unit in the Notice, which is a serious violation of the spirit of the State Council's salt industry system reform plan, and it is said that it will protect its rights through legal channels.

company secrets according to public reports and statistics provided by enterprises involved, as of April 6, more than 1, tons of salt from other provinces were detained in Jiangsu province, and most of them were still detained in the local salt industry management department.

The company secret once called the office of Jiangsu Salt Administration Bureau. Regarding the background and legality of the "Notice", a person in charge of wang xing explained: "This is a guiding document within the provincial bureaus, and the municipal bureaus will impose administrative penalties according to the illegal facts."

Regarding the frequent seizure of salt, the person in charge of wang xing said that the frequency of suspected illegal business operations increased after the salt industry reform, and the Jiangsu Salt Administration and the public security department jointly carried out two special law enforcement actions. "This is for the sake of ensuring the safety of people's salt, and every investigation in local cities and counties has a law enforcement basis."

The company's secret notes that on April 1th, Jiangsu Salt Administration Bureau published a report in official website, saying that in order to crack down on illegal activities such as making and selling fake salt and illegally operating salt, Jiangsu recently dispatched more than 1, law enforcement officers to inspect retail stores, farmers' markets, food processing enterprises and gathering units, and "investigated and dealt with a number of cases of making and selling fake salt and illegally operating salt".

Jiangsu Salt Bureau is the main party in the "Salt War". At present, salt administrations at all levels and salt companies at all levels have generally adopted the management system of integrating government with enterprises.

Take Jiangsu Province as an example. Jiangsu Salt Industry Group Co., Ltd. and Jiangsu Salt Administration Bureau are co-located, with separate government and enterprise, separate departments and separate functions.

Jiangsu Salt Administration Bureau is under the direct management of Jiangsu Provincial Government, and is responsible for the management of salt industry and the law enforcement of salt policy in the whole province. Jiangsu Salt Industry Group, on the other hand, is a wholly state-owned company, and its main business includes salt monopoly, commercial circulation, salt production from wells and mines and salt chemical production.

The policy for the formation of this system was to issue the "Measures for Salt Monopoly" in 1996.

according to this method, the wholesale license system is implemented for salt wholesale, and salt wholesale enterprises purchase salt according to the national plan and sell it within the prescribed scope. This also means that the edible salt in each province is basically completely monopolized by the salt enterprises in this province.

Last year, the Ministry of Industry and Information Technology and the National Development and Reform Commission issued the Letter of Joint Consumption of the Ministry of Industry and Information Technology, which was set as a transitional period of reform from January 1, 217 to December 31, 218, allowing designated salt production enterprises to operate independently across provinces (autonomous regions and municipalities directly under the Central Government), as long as they hold the salt wholesale license issued by the local provincial salt authorities.

On April 1th, the report published by official website of Jiangsu Salt Industry Bureau called the current situation "the gap period of market supervision and the vacuum period of laws and regulations".

Before the salt industry reform, Jiangsu Salt Industry Group monopolized the salt market in Jiangsu Province, "being the only salt wholesale business entity in Jiangsu Province; There is no salt competition from other provinces in Jiangsu Province, with a market share of 1%. "

According to company secrets, Jiangsu Salt Industry Group is one of the largest raw salt producers in China, which does not produce sea salt and owns seven large and medium-sized well salt mines. In 214, the crude salt output of Jiangsu salt industry was 6,462,7 tons.

Suyan Group said in its bond offering that the average annual output of salt-making enterprises in China is less than 3, tons, and only the designated salt production enterprises are profitable, and the whole industry is in a state of loss. China National Salt Industry Corporation, the industry leader, has a salt market share of only 16%, and the provinces are separated, which has not formed a mature and unified market.

combing the main business of Jiangsu salt industry, it is found that the company's main business includes salt, industrial salt, salt for two alkalis and salt chemical industry.

in the first three quarters of p>215, the operating income of salt was 1.282 billion yuan, accounting for 46.43% of the sales, while the operating cost accounted for only 2.296%, accounting for 348 million yuan.

In the first three quarters of p>215, the gross profit of the salt business of Suyan Group was 934 million yuan, and the corresponding gross profit margin reached 72.85%. In fact, the gross profit margin of salt has been above 7% in recent years.

not only high operating income, low operating costs, but also tax incentives have given birth to a huge profit margin for salt. According to the prospectus, after the reform and transformation of value-added tax on January 1, 29, the value-added tax rate of edible salt is still 13%.

The marketization of salt was listed as a risk warning by Suyan Group. Jiangsu Salt Industry said that in the future, China's salt industry and industrial salt industry are facing the trend of marketization. If the company cannot continue to consolidate its existing industrial position in the future development, it may face the risk of declining profitability.

At present, Suyan Group has 1 holding subsidiaries, including Suyan Chain Company, Huaihai Salt Chemical Company, Lianyungang Sutai Real Estate Company, Jiangsu Jingyuan Hotel, Jingshen Salt Chemical Company, etc., involving salt wholesale, refined salt processing, real estate, hotels and other sectors.

Among them, Jingshen Salt Chemical Co., Ltd. is a listed company with the best benefits, with a profit of nearly 1 million yuan in 214. Secondly, Suyan Chain Company, which is mainly responsible for salt sales, also made a profit of 78.18 million yuan in 214. Jingyuan Hotel made a profit of 2.86 million yuan in 214.

On the contrary, in 214, its subsidiary, New Century Salinization, lost 135 million yuan; The loss of Huaihai salinization also exceeded 1 million yuan.

On the whole, in 214, the operating income of Suyan Group was 5.4 billion yuan, while the net profit for the same period was 58.76 million yuan, with a net profit margin of only 1.52%. Its profit margin in 213 was as low as .7%.

Why is the overall net profit margin of Suyan Group so low, with a gross profit margin of over 7% and an absolute monopoly in the market?

Su Yan Group said in the bond offering book that this was mainly because "the overall operating profit rate of the company showed a sharp downward trend due to the falling price of salt chemical products in the new century".

As of September 215, Suyan Group * * * had 5,442 employees.

in its cash flow statement, the amount in the first three quarters of 215 is 498 million yuan. According to this calculation, the average monthly salary of its employees is 1,1 yuan.

in p>214, the amount of "cash paid to employees and for employees" in the cash flow statement of Suyan Group was 717 million yuan. If it is still calculated based on 5,442 employees, the average monthly salary of employees is 1,98 yuan.

around p>215, there was a personnel earthquake in Jiangsu salt industry system, and seven middle and high-level personnel were dismissed successively.

In February p>215, Wang Deshan, the chairman of Jiangsu Salt Industry Group and former director of Jiangsu Salt Administration Bureau, was involved in serious violations of discipline and law, and was investigated by the organization. At that time, Wang Deshan had been in this position for many years.

In December p>216, Wang Deshan was sentenced to 12 years' imprisonment for abusing his power and accepting bribes.

The court found that from 23 to 214, Wang Deshan took advantage of his position to seek benefits for relevant personnel in bidding and job promotion. In 28, during the reorganization and merger of Jiangsu Salt Industry, Wang Deshan failed to implement the filing tips of the Provincial State-owned Assets Supervision and Administration Commission, and also made a guarantee in violation of regulations, resulting in a loss of nearly 1 billion yuan.

In addition, Yang Tinghua, executive vice president of Jiangsu Salt Industry, was arrested on suspicion of accepting bribes, and Li Han, former vice president of Jiangsu Salt Industry Association, was also arrested on suspicion of accepting bribes.

according to a judgment, the court found that Li Han took advantage of his position as Minister of Investment and Development Department and Director of Bidding Office of Jiangsu Salt Industry Group, Chairman of New Century Salt Chemical Group, Secretary of Party Committee and Assistant General Manager of Jiangsu Salt Industry Group, and sought benefits for others in undertaking engineering projects, and took bribes of 4.67 million yuan.

Li Han was sentenced to 1 years' imprisonment and confiscated 1 million yuan.

It is found in the judgment that Li Han reported Wang Deshan and Yang Tinghua during the investigation. Among them, the court found that his accusation of Yang Tinghua constituted meritorious service; The accusation against Wang Deshan does not constitute meritorious service.