Fujian Province-based Chinese steelmaker Sangang Minguang Co. Ltd has issued its preliminary financial report for 2014, announcing a net profit of RMB 31.9879 million ($5.22 million), down 40.65 percent year on year. Meanwhile, in 2014 the company achieved an operating revenue of RMB 18.022 billion ($2.94 billion), down 6.61 percent year on year.
Sangang Minguang stated that in 2014 oversupply in the domestic steel industry made sales of finished steel more difficult. Although raw material prices declined sharply in the given year, finished steel prices also indicated significant declines, contributing to the drop in the company's profitability.