SIMSEN Metals (Holdings) saw net profits fall by 37.5 per cent, to $16.3 million, and margins plummet, with directors blaming tax reforms in China. Managing director Felipe Tan said the reforms 'affected the price parity between the China and international copper markets, which in turn curtailed the group's profit margin on the sales of copper products'. Turnover soared from $1.07 billion to $2.05 billion, an increase of 91.6 per cent. The rise in turnover and fall in profit led to a deterioration in net margins to 0.8 per cent in 1994 from 2.4 per cent in 1993. Earnings per share were eight cents against 18.4 cents in 1993, while a final dividend of one cent was declared. 'The first quarter of 1995 has seen some recovery in the Chinese copper markets and it is expected that the profit margin of copper trading business will normalise,' Mr Tan said. Mr Tan said the firm's United States subsidiary had performed well during the period under review, and the group would continue to purchase copper scrap from the US, 'where it is more reasonably priced and its content more standardised'. Simsen's aluminium trading business also suffered last year. The price of aluminium fell 40 per cent during 1994, Mr Tan said, and production was cut back. Mr Tan said the firm carried out heavy hedging operations during the year, especially on copper prices, which rose steeply in 1994. The price of July 1995 copper futures rose by more than 50 per cent during 1994.