Xinjiang-based Chinese steelmaker Bayi Iron and Steel Co. (Bayi Steel), a subsidiary of Chinese steel giant Baosteel Group, has issued its preliminary financial results for 2014, indicating an operating revenue of RMB 20.636 billion ($3.366 billion), down 11.03 percent year on year. For the given year, the company recorded a net loss of RMB 2.03 billion ($0.33 billion), compared to a net profit of RMB 33.38 million ($5.45 million) in the same period last year.
The company stated that the drop in finished steel sales prices was larger than the drop in costs, resulting in decreases in profit. Meanwhile, the company’s costs were also increased by the official launch of operations of its subsidiary Nanjiang Steel Baicheng Co. in the given year.