Valin Group expects to gain profits of RMB0.9-1 billion in H1 of 2017
2017-07-11 17:52:31 [Print]
Valin Group announced on July 7 at night that it expects to turn losses into gains and realize profits of RMB0.9-1 billion in H1 of 2017.
According to Valin, in H1 of 2017, downstream demand of iron and steel recovered and the iron and steel industry showed improvement as China continuously carried forward structural reform on supply side and devoted greater effort in reducing overcapacity of steel, eliminating intermediate frequency furnaces and renovating inferior rebar. In addition, Valin has been continuously building the support system of lean production, sales-research-production integration, and marketing service and achieved positive progress on steel products structural adjustment, reducing cost, improving quality and increasing efficiency, the profits of its core subsidiaries such as Xiangtan Iron & Steel and Ly Steel improved sharply, its auto sheet company realized continuous profits since it turned losses into gains in December, 2016, and Valin Steel Tube also turned losses into gains in Q2. Valin Group expects to achieve net profits of RMB1.1-1.3 billion in H1 of 2017, the net profits belonging to shareholders of listed companies of RMB0.9-1 billion, and basic EPS of RMB0.2984~0.3316, which is the best semi-annual performance since it listed.
Valin also made an announcement on the same day that it will suspend restructuring to protect the interests of investors and Valin as the financial assets to be put in have lost money, and the iron & steel assets to be pulled out have achieved great improvements on performance, structural adjustments,
improving quality, and increasing efficiency. After the suspension of restructuring, the iron & steel assets to be pulled out will remain in Valin, by which Valin can realize transformation and upgrading of iron and steel business by means of capital market. This decision is agreed by both sides, and Valin will rehabilitate the transacted assets and will not carry out the transactions to be completed.
Valin’s stocks will resume transactions on July 10.
According to Valin, in H1 of 2017, downstream demand of iron and steel recovered and the iron and steel industry showed improvement as China continuously carried forward structural reform on supply side and devoted greater effort in reducing overcapacity of steel, eliminating intermediate frequency furnaces and renovating inferior rebar. In addition, Valin has been continuously building the support system of lean production, sales-research-production integration, and marketing service and achieved positive progress on steel products structural adjustment, reducing cost, improving quality and increasing efficiency, the profits of its core subsidiaries such as Xiangtan Iron & Steel and Ly Steel improved sharply, its auto sheet company realized continuous profits since it turned losses into gains in December, 2016, and Valin Steel Tube also turned losses into gains in Q2. Valin Group expects to achieve net profits of RMB1.1-1.3 billion in H1 of 2017, the net profits belonging to shareholders of listed companies of RMB0.9-1 billion, and basic EPS of RMB0.2984~0.3316, which is the best semi-annual performance since it listed.
Valin also made an announcement on the same day that it will suspend restructuring to protect the interests of investors and Valin as the financial assets to be put in have lost money, and the iron & steel assets to be pulled out have achieved great improvements on performance, structural adjustments,
improving quality, and increasing efficiency. After the suspension of restructuring, the iron & steel assets to be pulled out will remain in Valin, by which Valin can realize transformation and upgrading of iron and steel business by means of capital market. This decision is agreed by both sides, and Valin will rehabilitate the transacted assets and will not carry out the transactions to be completed.
Valin’s stocks will resume transactions on July 10.
