Shanxi Province-based Chinese steel producer Taigang Stainless Steel Co., Ltd released its annual financial report for 2009 on April 20. According to the report, in 2009, the company saw a net profit of RMB 906 million ($132.84 million), down 26.65 percent year on year. Meanwhile, company revenue for the year came to RMB 71.828 billion ($10.531 billion), a decrease of 13.53 percent year on year, while earnings per share were RMB 0.159 ($0.023)
The company stated that the main reasons for the decrease in revenue and net profit were the financial crisis and severe market competition. Costs of raw materials, water, coal, power and transportation all increased, while steel price remained low.
In 2010 the company is planning to achieve revenue of RMB 80 billion ($11.73 billion).
In addition, Taigang Stainless Steel also issued its financial report for Q1 this year. In the quarter in question, revenue totaled RMB 20.576 billion ($3.017 billion), up 65.48 percent, net profit amounted to RMB 443 million ($64.956 million) compared to a net loss of RMB 714 million ($104.692 million) in Q1 2009, with earnings per share for the first quarter this year standing at RMB 0.078 ($ 0.011).
$1 = RMB 6.82