Beijing, China-based steelmaker General Steel Holdings, Inc. (General Steel) on March 16 issued its financial results for the fourth quarter of 2009 and the whole year, posting a larger loss compared to 2008, due to a change in fair value of derivative liabilities.
According to the financial results, the net loss of the company was $25.2 million in 2009 compared with a net loss of $11.3 million in 2008, increasing by 123 percent. Total revenues in 2009 saw an increase of 23.5 percent, rising from $1.4 billion in the previous year to $1.7 billion. Income from operations reached a record $47.5 million in 2009, compared to an operating loss of $29.0 million in 2008.
In the final quarter of 2009, the company's net loss was $11.1 million, compared to a net loss of $9.7 million in the same period of 2008, increasing by 13 percent. Sales revenues of $451.9 million in the fourth quarter of 2009 saw a 73.1 percent rise from $261.1 million in the fourth quarter of 2008. In the fourth quarter, income from operations increased to $1.5 million, compared to an operating loss of nearly $30.2 million in the fourth quarter of 2008.
The company said that its net income was materially impacted by a non-cash, non-operating expense that was due to the change in fair value of derivative liabilities related to the conversion of the company's convertible note.
"Despite the challenging macro environment in the beginning of the year, we achieved record total revenues, shipment volume and income from operations in 2009," said General Steel chairman and CEO Henry Yu, commenting on the results.