Outburst! This private steel company earns a massive 9.3 billion yuan in profit!
Against the backdrop of overall pressure in the steel industry, Zhenshi Holding Group Co., Ltd. (referred to as Zhenshi Holding) has delivered an impressive performance report. The latest data shows that from 2022 to March 2025, the company achieved a cumulative net profit of 9.349 billion yuan. Let’s analyze the profit code of this enterprise through relevant data.
The uniqueness of Zhenshi Holding lies in its diversified business structure. The company's operations are based on the manufacturing of special steel, logistics and transportation, and mineral products, supplemented by trade, real estate business, and hotel operations. This "main business + supplementary business" model effectively disperses operational risks. Even with a decline in net profit in 2024, the company remained profitable, thanks to:
The logistics and transportation sector provides stable cash flow: The logistics sector's operational model is mainly divided into associated enterprise loading business and peripheral enterprise loading business. In 2022, 2023, and 2024, the proportion of associated loading business in the logistics sector's revenue was 20.56%, 33.37%, and 28.00%, respectively, indicating relative stability in the share of associated enterprise loading business in the logistics sector. The complete industrial chain of the mineral products sector: The company's mineral products business mainly includes the mining of laterite nickel ore, the smelting and sales of nickel iron. Part of the raw materials for mineral products come from the company's own mines. In 2010 and 2013, the company acquired mining rights for two laterite nickel ore sites on Gebe Island in Halmahera County, North Maluku Province, Indonesia, with a total mining area of 2,200 hectares and high-grade laterite nickel ore resources reserves exceeding 63 million tons, with an average nickel content of over 1.8%. As of the end of March 2025, the company controlled resources containing 63 million tons of nickel. Investment income from China Jushi: As a founding shareholder of China Jushi, the company's investment income from China Jushi is stable and sustainable. Promoting overseas synergistic development: In recent years, Zhenshi Group has increased investment in overseas projects. As of the end of March 2025, the company has invested in 16 overseas companies. 15.5 billion yuan in ongoing projects: The company's green high-end nickel-chromium new material intelligent manufacturing project under construction has a total investment of 15.5 billion yuan. According to the company's prospectus disclosure: "It is expected to invest 4.861 billion yuan from April to December 2025 and 6 billion yuan in 2026." This strategic layout will drive the enterprise's transformation and upgrading towards high-end manufacturing.