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Home Page


http://www.longhaisteelinc.com/



Longhai Steel Inc., is a leading producer of high-quality steel wire in diameters from 6.5 to 10.0 millimeters. Downstream manufacturers process Longhai Steel's wire into screws, nails, and wire mesh used to reinforce concrete and for fencing. Demand is based on spending in the construction and infrastructure industries in China.

All of its sales are delivered in China. Longhai Steel competes using advanced production equipment and process technology, high product quality, fast order fill, and competitive prices. Its rolling and drawing facilities are among the most advanced in the world.


NOTE:

From Chinese website, notice ACTN is a part of Hebei Iron & Steel

http://www.xtlh.com/main.htm

and

http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=47771211

From wikipedia, largest steel companies in world:

Hebei Iron & Steel - ranked 2nd ?!?!

http://en.wikipedia.org/wiki/List_of_steel_producers


Tour Our Facility Video

http://a.eqcdn.com/longhaisteel/files/video/longhai-steel.mp4



Pictures

(from homepage website)












Investor Presentation - February 2011


http://content.stockpr.com/longhaisteel/media/54c5da0a2b252796d734a1b13e77c744.pdf


Links

http://nvsos.gov/sosentitysearch/CorpDetails.aspx?lx8nvq=CTvicw03COexjKJRzY19nQ%253d%253d&nt7=0
http://nvsos.gov/sosentitysearch/corpActions.aspx?lx8nvq=CTvicw03COexjKJRzY19nQ%253d%253d&CorpName=LONGHAI+STEEL+INC.


http://www.otcmarkets.com/stock/ACTN/company-info
http://www.otcmarkets.com/stock/ACTN/financials
http://ir.stockpr.com/longhaisteel/all-sec-filings
http://investing.businessweek.com/research/stocks/people/person.asp?personId=100135214&ticker=ACTN:US
http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?ticker=ACTN:US
http://investing.businessweek.com/research/stocks/financials/financials.asp?ticker=ACTN:US
http://www.google.com/webhp?rlz=1C1TSNJ_enUS440US440&sourceid=chrome-instant&ie=UTF-8&ion=1&nord=1#hl=en&sugexp=kjrmc&cp=19&gs_id=1&xhr=t&q=Longhai+Steel%2C+Inc.&qe=TG9uZ2hhaSBTdGVlbCwgSW5jLg&qesig=3X4lUqyWfXJz38Fh53A07A&pkc=AFgZ2tnCvyxLl0N2nfAa2b7VmWCpncuu_XVKdIe3tbnkk8I_SYDwtHfVGMipitqXcFZkCHhK-vsMJONX8znB1KtQKrurs20T6w&pf=p&sclient=psy-ab&rlz=1C1TSNJ_enUS440US440&nord=1&site=webhp&source=hp&pbx=1&oq=Longhai+Steel,+Inc.&aq=f&aqi=&aql=&gs_sm=&gs_upl=&bav=on.2,or.r_gc.r_pw.r_cp.,cf.osb&fp=38047f631b38211f&biw=1366&bih=600&ion=1
http://stockcharts.com/h-sc/ui?s=ACTN
http://www.barchart.com/quotes/stocks/actn
http://www.barchart.com/opinions/stocks/actn
http://www.barchart.com/cheatsheet.php?sym=ACTN


Invester Overview

http://ir.stockpr.com/longhaisteel/overview


Company News

http://ir.stockpr.com/longhaisteel/company-news


Company IR contacts

http://ir.stockpr.com/longhaisteel/ir-contacts

Auditors

MaloneBailey, LLP
Westchase District
10350 Richmond Ave., Suite 800
Houston, TX 77042


Transfer Agent

Interwest Transfer Company, Inc.
1981 Murray Holladay Road, Suite 100
Salt Lake City, UT 84117

Phone: [phone]
Fax: [phone]


Financials

http://ir.stockpr.com/longhaisteel/financials


SEC Filings

http://ir.stockpr.com/longhaisteel/all-sec-filings


Company E-mail alerts

http://ir.stockpr.com/longhaisteel/email-alerts






OVERVIEW


Longhai Steel is a leading producer of high-quality steel wire in diameters from 6.5 to 10 millimeters. Downstream manufacturers process Longhai’s wire into screws, nails, and wire mesh used to reinforce concrete and for fencing. Demand is based on spending in the construction and infrastructure industries in China.

Located in Hebei, the largest steel producing province in China, Longhai has an annual capacity of 900,000 metric tons. All of its sales are delivered in China, with 80% going to customers in Hebei. Expansion plans should increase annual capacity 67% to 1.5 million metric tons, subject to financing.

Longhai competes using advanced production equipment and process technology, high product quality, fast order fill, and competitive prices. Sales in 2010 were $480.0 million, net income was $12.0, total assets were $88.8 million at year end, and employees totaled 505 people.

Longhai’s production plant of 107,000 square meters is in Xingtai, Hebei. Its rolling and drawing facilities are among the most advanced in the world.


Growth Strategy


Expand production - In October 2010, Longhai Steel signed a five-year operating lease for a newly constructed wire plant adjacent to its current plant. The new factory, with a capacity of 600,000 metric tons, will increase annual production capacity by 67% to 1.5 million metric tons. The new wire plant will produce a higher grade wire than Longhai’s current products, and will produce wire made from carbon steel, cold heading steel, and welding rod steel in diameters from 5.5 to 18 millimeters.

Expand by prudent acquisitions - Identify and acquire modern, high-quality producers at low valuations. Given the government-encouraged consolidation of the steel industry and related restrictions, Longhai plans to expand its operations and sales by acquiring steel wire producers with production facilities near its current facilities.

Increase economy of scale - By expanding through organic growth, acquisitions, and modernizations, Longhai expects to increase its operating leverage, production,and sales, and have a greater influence on pricing and costs, as well as return on investment.


Certifications


ISO9001-2000

GB/700-88


Management Team

Mr. Chaojun Wang

Chairman and CEO


Mr. Wang has served as our Chairman and Chief Executive Officer since March 2010, has served as the Chief Executive Officer of our Chinese operating company since its inception in 2008, and has served as Chairman of the Longhai Steel Group, our former parent company, since 1999. Mr. Wang is a member of the local parliament. He holds a Bachelor’s degree in Enterprise Management from the Shijiazhuang Railway College. Born in 1955, he is 55 years old.
Mr. Heyin Lv
Chief Financial Officer

Mr. Lv joined Xingtai Longhai Steel Group Co., Ltd., the Company’s then parent company in April 2008. He was later appointed as the Chief Financial Officer of Xingtai Longhai Wire Rod Co., Ltd., the Company’s operating subsidiary, and served from August 2008 to July 2011. He was responsible for financial reporting, financial planning and analysis, budgeting and treasury management. From 2007 to March 2008, Mr. Lv was an auditor with Xingtai Zhengda Audit Firm. In 2006, Mr. Lv was the Financial Director of Hebei Xingda Group, responsible for financial reporting and treasury management. From 2001 to 2005, Mr. Lv served as the Financial Manager for Xingtai Century Auto Trading Co., Ltd., responsible for financial reporting and financing. Mr. Lv graduated from Xingtai Accounting and Trade School and earned a bachelor’s degree in Accounting. He is a Certified Public Accountant in China.



Mr. Chaojun Wang
Chairman and CEO

Mr. Wang has served as our Chairman and Chief Executive Officer since March 2010, has served as the Chief Executive Officer of our Chinese operating company since its inception in 2008, and has served as Chairman of the Longhai Steel Group, our former parent company, since 1999. Mr. Wang is a member of the local parliament. He holds a Bachelor’s degree in Enterprise Management from the Shijiazhuang Railway College.



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Pictures







Products


Steel Wire


High quality steel wire for use primarily in construction applications; 6.5mm to 10mm diameter wire.

Our wire is further processed by 3rd-party wire refiners into nails, screws, and wire mesh for use in reinforced concrete and fencing.
Our wire is manufactured with strict adherence to ISO9001-2000 and GB/700-88 quality standards.


New Steel Products

Our new facility will produce carbon structure steel, cold heading steel, and welding rod steel.
Diameter range of 5.5mm - 18mm.
Applications include steel wire rope, steel strand, steel belted radial tires, and steel welding rod.


Operations


Overview

Through its Chinese operating company, Longhai manufactures steel wire products in diameters from 6.5 to 10 millimeters on two wire production lines that have a total annual capacity of about 900,000 metric tons.

Longhai’s output is sold to several distributors who transport the wire to nearby wire processing companies that make a variety of products including screws, nails, and wire mesh used to reinforce concrete and for fencing.

Longhai manufactures on demand. Sales prices are set at the market price for wire on a daily basis. Customers usually prepay with their orders, then the final prices are adjusted to the market price on the day of pickup by the customer. This allows Longhai to maintain low inventory of both wire and raw materials and minimizes its exposure to commodity price volatility. To increase sales and be price competitive, Longhai occasionally offers discounted wholesale prices.

Sales efforts are directed toward developing and sustaining long-term relationships with customers who are able to purchase in large quantities. In 2010, Longhai’s top five distributors accounted for about 40% of our sales.

Longhai’s production facilities, located in Xingtai, Hebei province, cover 107,000 square meters. The plant includes a single steel furnace with its coarse and intermediate rolling mills that then feeds two precise wire rolling and drawing lines that create the finished products. This design yields high quality, high volume, and competitive manufacturing costs per ton.


Production Facility

http://www.longhaisteelinc.com/operations/production-facility

Longhai’s high quality steel wire is manufactured at the company’s expansive on-site production facilities.

State-of-the-art production facilities in Xingtai, Hebei.
107,000 square-meter space covering production facilities, warehouses, and offices.
Modern, recently upgraded manufacturing equipment.
Fifth generation steel rolling mill, double chamber heating furnace, coarse and intermediate rolling mill.
Two high-speed Y-shaped production lines; wire produced at 90 meters / second.
Lower oxidation from high speed yields superior, resilient finished product.
Annual production capacity of 900,000 MT; increasing to 1.5 million MT in near term.
Facility expansion plan underway to increase annual production capacity 67%


Sales and Distribution





The company’s high quality steel wire is sold through private distributors and trading companies to third-party processors throughout Hebei and neighboring provinces.

100% of distribution in China; 80% in Hebei.
On-demand manufacturing; payment collected in advance.
Finance raw material purchases and minimize A/R.
Dedicated 20-person sales department.
35% of 2010 Revenue from top 5 customers; 39% in 2009.
Strategically located in largest steel-making province in China.
24% of China’s steel output in 2009 (41% of iron ore output). (1)
(1)CISA and SBB via China Steel equity research note (August 10th, 2010)


Longhai's Market


Our primary geographic market is the Hebei Province, especially the steel wire processing region around Hengshui. About 20% of Longhai’s sales are also sold in neighboring provinces.

About Hebei Province

In 2009, Hebei's economy measured by GDP was RMB 1.72 trillion (about US$ 252 billion), up 10.1% from 2008 and was ranked as the sixth largest provincial GDP in China.

Hebei is the largest steel-making province in China and accounted for 24% of China’s steel output in 2009.

Hebei's industries include textiles, coal, steel, iron, engineering, chemical production, petroleum, power, ceramics, and food.


Raw Materials



Steel billet, principal raw material used, accounts for vast majority of production costs.

Steel billet is purchased subsequent to receipt of customer order, largely protecting Longhai from commodity price volatility.
Billet price movements tracked daily ensuring effective, rapid response to market conditions.



New Facility

New facility will produce carbon structure steel, cold heading steel, and welding rod steel.

Our new facility is being designed to produce higher-margin products.
Diameter range of 5.5mm - 18mm.
Applications include steel wire rope, steel strand, steel belted radial tires, and steel welding rod.



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