Baosteel's net profit surges 11-fold in H1
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Baoshan Iron & Steel, the listed unit of one of China's leading steel makers, said its first-half net profit jumped 11-fold on higher steel prices and strong market demand.
Net profit increased 1103.39 percent to 8.05 billion yuan (1.18 billion U.S.dollars) in the first half, the company said in a statement filed to the Shanghai Stock Exchange on Saturday.
Earnings per share stood at 0.46 yuan, compared with 0.04 yuan a year earlier. Business revenue climbed 49.56 percent to 97.94 billion yuan in the first half, it said.
The Shanghai-listed unit of Baosteel Group Corp. said the surge in profit was a result of expanding sales volumes and profit margin, as demand for steel has rebounded significantly since the beginning of this year.
The sales volume of the company's steel products grew 23.3 percent from the same period last year, while the overall gross profit ratio was 11.6 percentage points higher from a year earlier, it said.
But the company said it faces more challenges and pressure in the third quarter as steel product prices would witness a sharp decline in the July-Sept. period, while imported iron ore prices remained high.
Shares of Baoshan Iron & Steel rose 0.64 percent to 6.32 yuan on Friday.
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