December 03, 2008

Sangang Minguang net profit in 2007 up by 35% YoY

Sangang Minguang, a listed steel producer in Fujian Province, has reported a net profit of CNY 499 million last year up by 35% YoY on 2006. Sales revenue was CNY 11.3 billion up by 29% YoY while operating income was higher by 40% YoY at CNY 742 million.

It produced 3.33 million tonnes of crude steel up by 4.8% YoY, 2.65 million tonnes of pig iron up by 9.5% YoY and 3.34 million tonnes of finished steel products up by 5.5% YoY.

Its main products are bar, wire rod and plate. Sangang Minguang foresees steel demand in the southeast Chinese province increasing this year as fixed asset and real estate investments are expected to rise.

It aims to produce 3.83 million tonnes of crude steel, 3.26 million tonnes of pig iron and 3.6 million tonnes of finished steel products in 2008 thus generating sales revenue of CNY 14.6 billion. It also plans to refinance this year, or next year, to purchase a plate mill from its parent, Sangang Group.