August 22, 2008

Five Chinese steel majors announce Q1 results

According to the report for the first quarter issued by Baosteel Company Limited, it had a net profit of CNY 4.259 billion up by 15.88% YoY and the profit per share came to CNY 0.24. At the same time, Baogang Company, Valin Tube and Wire, Pangang Vanadium Steel and Tanggang issued the reports for Q1 of 2008, among which, Baogang and Tanggang had a hike of more than 50% in revenue, while those for Valin Tube and Wire and Pangang Vanadium Steel declined.

1. BaoSteel
Baosteel managed to realize a consolidated profit of CNY 180 million up by 3.1% YoY and CNY 2.41 billion up by 71% YoY. Since the profitability of stainless steel products recovered, the loss of stock value decreased, and therefore the loss in assets in first quarter decreased by CNY 370 million.

2. Baogang
During the January to March 2008 period, Baogang realized net profit CNY 514,609,538.99 up by 159.89% YoY and profit per share came to CNY 0.08. Baogang attributed the increase in revenue to rising sale volume of steel products and sale prices, and the improved profitability.

3. Tanggang
Tanggang had a net profit of CNY 729,827,579.37 in Q1 of 2008 up by 57.05% YoY. The new projects that launch operation and adjust in income tax helped to push up the revenue.

4. Valin
Valin Tube & Wire had a loss of CNY 263,494,897.98 in Q1 of 2008 down by 196.60% YoY. And the reason for that was the heavy snow in early 2008. It is calculated that the company lost CNY 900 million during the snow disaster. Till the later half of February 2008, Valin Tube and Wire got back to normal production and maintained a good trend in March 2008, with steel output of 900,000 tonnes and steel sale volume of 926,000 tons and profit of CNY 339 million. But the performance in Q1 had a shock decline from that of the corresponding period in 2007 and turned into red.

5. Pangang
Pangang Vanadium Steel had a net profit of CNY 171,057,461.86 for Q1 of 2008 down by 11.69% YoY.