On January 10, Shanghai-based Chinese steel giant Baoshan Iron and Steel Co. Ltd (Baosteel) issued its financial results for 2012, indicating a net profit of RMB 10.305 billion ($1.64 billion), up 39.98 percent on year-on-year basis. Meanwhile, the company reported an earning of RMB 0.59 for per share last year.
In 2012, Baosteel achieved a total operating revenue of RMB 191.47 billion ($30.5 billion), down 14.08 percent compared to 2011.
Baosteel's adjusted operating profit for 2012 totaled RMB 6.2 billion ($987 million), down 33 percent year on year, excluding earnings of RMB 9.58 billion from sales of related assets and equities of its stainless and special steel divisions as well as an impairment loss of RMB 2.65 billion ($422 million) resulting from fixed assets to be disposed of at the company's Luojing plant. In the fourth quarter of 2012, the company registered an adjusted operating profit of RMB 1.91 billion ($304 million), excluding the fixed asset impairment loss for the Luojing plant.
Baosteel stated that its operating profit in 2012 was negatively impacted by the pressure on its gross profit margin due to the imbalance between steel supply and demand, lower steel prices as well as relatively firm prices of iron ore.