October 13, 2008

Fushun Xingang 9 month profit up by 111% YoY

It is reported that Fushun Xin Iron and Steel Company Ltd made improvements on major economic indexes. From January to September 2007, the company realized net profit CNY 3.12 billion increasing 111.4% from that of the same period in 2006.It has formed a method of operation by streamlining input, production and sale areas as under.

1. It has set a powerful supply system of raw materials through increasing the iron ore imports while making a selection of the suppliers. During the first three quarters, the purchased iron ore fines has an average iron content of 66.4% up 0.4% with that of the same period in 2006 with the local materials accounting 100%, bringing down the purchasing costs.

2. It arranged the production basing on the plan and adjusted the plan according to the market situation and the market analysis. Meanwhile, the company introduced new technologies and new equipments and kept on developing new products. Now the company has a finished products rate of class three steel and a ratio of qualified materials of 95.8% and 99.8% up from 93.8% and 99.3%.

3. It has divided the market into subsections to increase the sale volume and the profits and arranged the deliveries according to the prices changes in various areas and met the market demand with different specifications

It is also trying to develop the oversea markets and increase the ratio of foreign exchanges in the income. During the first three quarters, the company realized foreign exchanges USD 45.23 million.