The company announced that its 2008 performance is estimated to shrink by 50% YOY. Meanwhile, Jiangsu Alcha Aluminum Co., Ltd. (002160) and Sichuan Haite High-Tech Co., Ltd. (002023) announced that they have revised their 2008 profit outlook from an increase to a decrease.

The company claimed that its net profit in the first half of 2008 has shrunk by 50% YOY. In the first half of 2007, its net profit was RMB 6.4 bln and EPS were RMB 0.53. At the beginning of 2008, due to shortages in the power supply caused by the snowstorms, certain enterprises under the company had suspended production. Meanwhile, due to rising costs in raw materials, production costs had increased drastically.

Jiangsu Alcha Aluminum announced that its 2008 net profit is projected to decline by 15% YOY. Its net profit from January to June 2008 is estimated to increase by less than 30% YOY. It has claimed that its 2008 financial costs will rise dramatically.

Sichuan Haite High-Tech announced that its 2008 net profit is estimated to decline by 20% YOY as a result of the earthquake in Wenchuan County, Sichuan Province. In its 1Q 2008 Report, its operational performance for the first half of 2008 is estimated to increase by 30%-50% YOY.

Zhejiang Yinlun Machinery Co., Ltd. (002126) announced a revision of its profit estimation stating that its net profit from January to June 2008 is estimated to rise by 30%-60% YOY. In its 1Q 2008 Report, the company had estimated that its net profit for the first half of 2008 would increase by no more than 30%. Due to declining prices of raw materials in the 2Q 2008, its production costs are expected to fall.


Source: China Securities News

Date: 23 Jun 2008

CN01/MZ/AR/KM