China Knowledge reported that Shanxi Guanlu Co Ltd which is principally engaged in the smelting and processing of nonferrous metals posted CNY 712 million in losses for last year whereas it suffered losses of CNY 498 million in 2008.

Loss per share stood at CNY 1.09. Operating revenue declined 28.11%YoY hitting CNY 1.78 billion.

The Shenzhen listed firm attributed the deficit to low electrolyzed aluminum prices and a sluggish market.

An insider in the aluminum market said that 30% of the company plants were shut down because equipment was outdated. In the reporting period, China spot aluminum prices were between CNY 11,000 and CNY 18,000 per ton. Selling at these prices, the firm gross profit margin for 2009 would have been very low or even negative.

Reportedly, Shanxi Guanlu deficits widened further in the first quarter of this year. Losses were CNY 17.45 million in the period and it had CNY 2.35 billion in total assets as of March 31st 2010, whereas it had CNY 2.26 billion in assets at the end of March 2009.

(Sourced from China Knowledge)