3Q Net Profit Surge Equals RMB 787 mln

Maanshan Iron and Steel Co., Ltd. (600808) released its 3Q 2008 Report on 15 Oct 2008, including a 44.68% increase in revenue to RMB 19.87 bln and a RMB 787 mln surge in net profit, up 56.46% from the same period in 2007. The company also plans to issue medium-term notes worth a maximum of RMB 4 bln via the interbank bond market.

The company says that a series of production plans and sales strategies were tailored to withstand plunging demand and lower prices for steel caused by the recent international financial turmoil. During the reporting period, the company produced a total of 3.75 mln tonnes pig iron, 4.08 mln tonnes of raw steel and 3.81 mln tonnes of finished steel, respectively up 5.63%, 4.08% and 4.67% YOY. The increases in revenue and net profit are mainly attributable to rising sales of steel products. The company asserts that weakened steel demand is likely to persist indefinitely.

It has also been reported that since the RMB 100 mln, 100,000-tonne wastewater processing station was put into operation at the end of last month, it has been treating 3,000 tonnes of sewage per hour. The processed wastewater can thereafter be recycled to save more than RMB 10 mln.


Source: Securities Times

Date: 15 Oct 2008

CN01/BJ/JL/NK/MM