Jiangsu Province-based Chinese steel producer Jiangsu Shagang Co., Ltd (Jiangsu Shagang), a subsidiary of Chinese steelmaker Shagang Group, has issued its financial report for the first half of the current year, stating that it registered an operating revenue of RMB 6.235 billion ($0.9 billion) in the given period, down 13.82 percent year on year, while it posted a net profit of RMB 285 million ($40.7 million), down 55.97 percent year on year.
The company expects it will register a net profit of RMB 360-540 million for the first nine months of the year, down 46-64 percent year on year.
In the first half of the current year, raw materials costs rose, impacting the financial results of Chinese mills. Moreover, China will implement a stricter environmental protection policy in the third quarter of the year, which will exert pressures on the company’s purchasing costs and efficiency, thereby negatively influencing the company’s performance in the first nine months of the year.