Maanshan sees first-half loss more than double to 730.27m yuan
Shares of Maanshan Iron & Steel fell 2.7 per cent on Wednesday morning after it posted a worse-than-expected first-half loss.
Shares of Maanshan Iron & Steel, the second-biggest Hong Kong-listed steelmaker, fell 2.7 per cent on Wednesday morning after it posted a worse-than-expected first-half loss.
They traded at HK$1.81 at 10.19am. The company’s shares had gained 8.4 per cent in the previous month as investors bet steel producers’ profitability would improve on the back of sharp falls in raw material prices.
Net loss more than doubled to 730.27 million yuan (HK$919.99 million), from 332.83 million yuan in the same period last year.
The deterioration was attributed to a fall in sales due to slower economic growth on the mainland and in other market. The oversupply problem in the mainland iron and steel industry had also seen steel prices fall, company chairman Ding Yi said in a results statement posted on the stock exchange website on Tuesday night.
The business environment of steel companies will still be challenging
“During the reporting period, the company’s production and sales volume has decreased as compared to the corresponding period last year, while fixed costs have increased,” Ding said.
Operating revenue dropped 21 per cent year on year to 28.86 billion yuan and net cash flow from operating activities fell 63 per cent to 1.39 billion yuan.