Inner Mongolia-based Chinese steelmaker Baotou Iron and Steel Co. (Baogang) has announced that in the first half of the current year it registered an operating revenue of RMB 14.672 billion ($2.38 billion), down 23.70 percent year on year, while it posted a net profit of RMB 36.5844 million ($5.94 million), down 69.93 percent year on year.
In the first half this year, Baogang produced 4.32 million mt of pig iron, 4.59 million mt of crude steel, and 4.24 million mt of finished steel, achieving a gross profit of RMB 88 million ($14.29 million).
At the beginning of this year, Baogang had stated that in 2014 it planned to produce 12 million mt of pig iron and 12.45 million mt of crude steel, and to sell 11.66 million mt of finished steel, targeting an operating revenue of RMB 43.2 billion ($7.01 billion) and a gross profit of RMB 1.028 billion ($0.17 billion) for the year.
Baogang stated that its financial results in the first half have not met expectations mainly due to the ongoing sluggishness of demand from downstream industries, which has dragged down the sales volumes and selling prices of its steel products. The decline in finished steel prices has resulted in a reduced net profit for the company.