December 02, 2008

Hangang net profit during H1 up by 16.75% YoY

According to Hangang’s mid term report, it achieved net profit of CNY 501 million up by 16.75% YoY during January to June 2007. Its revenue from sheet division was CNY 7.928 billion with gross margin of 18.93% up by 4.24% YoY, from bar division CNY 1.805 billion with gross margin of 0.32% down by 12.75% YoY and from overseas market CNY 722 million up by 264.5% YoY.

Its production of crude steel was 3.033 million tonnes down by 2.48% YoY, finished steel was 2.801 million tonnes up by 6.5% YoY.

Hangang said that “Market competition became more furious due to aftereffect from national macro regulatory, pressure from environmental protection, coupled with changes of export rebate.”

Baosteel and Hangang also signed cooperation on May 10th 2007 to set up a JV Hangang Hanbao Company, which mainly deals with construction, operation and development of Hangang new area where a 4.6 million tonnes per year sheet production line will be built to produce short supplied high value added materials such as pipeline steel, auto sheet and home appliance.