Baosteel's net profit up by 64.91% YOY to RMB6.17b in H1 of 2017
2017-09-04 08:18:39 [Print]
According to the semi-annual report for 2017 released by Baosteel on late August 24th, the company saw a net profit of RMB6.17b in H1, an increase of 64.91% YOY; an operating income of RMB169.933b, an increase of 59.91% YOY.
The company said that both demand and raw materials for steel show rapid fluctuations in the international and domestic markets currently; supply-side environment in China continues to see improvement; and the company enters into the critical stage of business integration and comprehensive reform deepening. During the reporting period, the company produced 22.435 million tons of iron and 23.329 million tons of steel while sold 22.743 million tons of commercial billets, achieving a total profit of RMB8.51b, up by 58.2% YOY.
In November 2016, Zhanjiang project was fully put into operation. In February 2017, Baosteel merged Wuhan Iron & Steel. At present, the company has production bases in Shanghai Baoshan, Nanjing Meishan, Zhanjiang Dongshan and Wuhan Tsingshan and other places.
Faced with the uncertainty from the market and the challenge from the company itself, Baosteel claimed that it will speed up the reform action, continue to cut costs and further strengthen cooperation between production and marketing and linkage between purchases and marketing by focusing on synergy of four major production bases.
According to the report, the company planned to achieve a gross revenue of RMB338.46b in 2017 with RMB170.15b achieved in H1, accounting for 50.3% of the target; the company planned to see an operating cost of RMB310.15b in 2017, and spent RMB152.79b actually in H1, accounting for 49.3% of the annual budget. The company has fulfilled its annual cost reduction plan by cutting RMB3.82b of cost in H1.
However, the company failed to see expected results in synergy income as it achieved only RMB328m, accounting for 32.8% of the planned RMB1b.
The company said that both demand and raw materials for steel show rapid fluctuations in the international and domestic markets currently; supply-side environment in China continues to see improvement; and the company enters into the critical stage of business integration and comprehensive reform deepening. During the reporting period, the company produced 22.435 million tons of iron and 23.329 million tons of steel while sold 22.743 million tons of commercial billets, achieving a total profit of RMB8.51b, up by 58.2% YOY.
In November 2016, Zhanjiang project was fully put into operation. In February 2017, Baosteel merged Wuhan Iron & Steel. At present, the company has production bases in Shanghai Baoshan, Nanjing Meishan, Zhanjiang Dongshan and Wuhan Tsingshan and other places.
Faced with the uncertainty from the market and the challenge from the company itself, Baosteel claimed that it will speed up the reform action, continue to cut costs and further strengthen cooperation between production and marketing and linkage between purchases and marketing by focusing on synergy of four major production bases.
According to the report, the company planned to achieve a gross revenue of RMB338.46b in 2017 with RMB170.15b achieved in H1, accounting for 50.3% of the target; the company planned to see an operating cost of RMB310.15b in 2017, and spent RMB152.79b actually in H1, accounting for 49.3% of the annual budget. The company has fulfilled its annual cost reduction plan by cutting RMB3.82b of cost in H1.
However, the company failed to see expected results in synergy income as it achieved only RMB328m, accounting for 32.8% of the planned RMB1b.
