Shougang Concord International Enterprises Co has suffered a 46 per cent drop in attributable profit, as its shipping and steel divisions suffer from harsh market conditions.
The company, the Hong Kong-listed flagship of mainland steel giant Shougang Corp, reported net profits of HK$100.39 million for the year to December 31.
This is down from $185.31 million in 1995, which prompted the company to slash its final dividend from two cents to one cent per share. The result came as turnover dipped sharply to $5.65 billion.
Related companies had a mixed bag of results.
Shougang Concord Century Holdings recorded an attributable profit slump of more than 60 per cent to $29.68 million. Shougang Concord Technology Holdings had a small net profit rise to $35.1 million and Shougang Concord Grand (Group) registered a sharp positive turnaround to post a $116.63 million profit for the December year.
The three related entities posted final dividends of nil, one cent and two cents a share. Additionally, Shougang Concord Grand has recommended a special half cent dividend.
Shougang Concord International Enterprises' steel division recorded a 10 per cent drop in sales volume last year, while its shipping division suffered from a worldwide shipping industry recession last year and recorded a loss.
The company said difficult market conditions would continue to affect its performance this financial year.