Jiangsu Province-based Nanjing Iron and Steel Co., Ltd (Nanjing Steel) has issued its financial report for the first six months this year, stating that it registered an operating revenue of RMB 33.679 billion ($10.3 billion) in the given period, down 8.78 percent year on year, while it posted a net profit of RMB 1.233 billion ($0.3 billion), up 24.7 percent year on year. This is the first half-year performance report after the change of the company’s actual controller to CITIC Group.
There were many factors contributing to the year-on-year rise in the company’s net profit: the main business, the steel segment, maintained a high profit level, while management fees and financial fees indicated year-on-year declines.
As a leading full-process iron and steel enterprise, Nanjing Steel’s thick and medium plates and special steel long products have strong market competitiveness, and are widely used in the fields of oil and gas equipment, new energy, ships and offshore, automobile bearings and springs, engineering machinery and railroads, bridges and high structures, with a large proportion of customers in the high-end manufacturing industry. As a result, Nanjing Steel’s financial performance was not significantly affected amid the weak performance of the real estate industry, which caused a sharp reduction in the demand for rebar and wire rod.