Jaway Stainless Steel

Jiugang Hongxing doubles its net profits in H1

National Business Daily reported that Jiugang Hongxing which is under the control of Jiuquan Iron and Steel Co Ltd and released the first half year report in China steel industry which showed that its net profits doubled despite the steel price roller coaster in the first half year of 2011 an auspicious sign for the whole industry

As revealed in the report, the operational revenue in the first six months of this year registered at CNY 27.96 billion up by 41.59%YoY with total profit volumes at CNY 1.23 billion. The net profits attributed to its parent company posted at CNY 0.90 billion up by 107.44%YoY with CNY 0.22 earnings per share. The company strengthened the production by making full use of its regional advantages and widened the sales channels which led to a larger increase of sales profits compared with the corresponding period of last year.

Jiugang planned to produce pig iron, crude steel and steel plates at 7.86 million, 9.15 million and 8.95 million tonnes respectively this year but the actual volumes didn’t reach the half of the plan, separately at 3.66 million, 4.38 million and 4.27 million tonnes. Surprisingly, the increase rate of net profits was quite optimistic resulting from the wise judgments on the domestic steel market to ensure the sales at fairly high prices.

From Jan to Feb when the steel prices were hovering at a high level, it increased deliveries to keep the inventory at the lowest level. When entering May, the steel company elevated the shipping efficiency to offset the great impacts of Apr steel price corrections and started carbon steel exporting business to enhance the profitability which brought it good effects at that time.