China’s Panzhihua Steel posts increased losses for 2009

On January 28, Panzhihua New Steel and Vanadium Co., Ltd. (Panzhihua Steel) announced that it expects to record a net loss of RMB 1.4 billion (approx. $205 million) for 2009, with basic earnings per share of -RMB 0.24. The corporation will receive a ‘risk of delisting' warning from Shenzhen Stock Exchange for its losses recorded both in 2008 and 2009. In 2008, the producer posted a net loss of RMB 454 million, with basic earnings per share of -RMB 0.14. Thus, the company's losses increased in 2009, even though it completed a reorganization of its assets last August.
                
The losses incurred by the company have been due to the influence of factors including the reconstruction of its Chengdu and Jiangyou subsidiaries after the 2008 Sichuan earthquake disaster, and the substantial decline in prices of steel, vanadium, titanium and other major products.