Fangda Steel Group expects drop of nearly 30% in gross profit for 2019 

Tuesday, 10 March 2020 16:53:56 (GMT+3)   |   Shanghai
       

Jiangxi Province-based Chinese steelmaker Jiangxi Fangda Steel Group Co., Ltd. (Fangda Steel Group) has announced that for 2019 it expects to register a gross profit of RMB 9.788 billion ($1.41 billion), down nearly 30 percent compared to RMB 13.9 billion in 2018. 

Meanwhile, the average profit of its steel business was RMB 623/mt ($89.8/mt) in 2019, much higher than the average profit level of RMB 209.59/mt ($30.2/mt) for the overall steel industry in China in the given year. Through continuous improvement in management, Fangda Steel Group maintained the leading position in environmental protection technology, resulting in good profitability, the company stated. Meanwhile, its brand “Bosheng” has been used in high-speed railway projects, while its high-strength spring steel has been used in automobile production, contributing to its profitability.  

Its listed subsidiary company Fangda Special Steel has announced that it registered an operating revenue of RMB 15.39 billion ($2.2 billion) in 2019, down 10.97 percent year on year, while it posted a net profit of RMB 1.71 billion ($0.25 billion) for the year, down 41.54 percent year on year.

In its annual financial report for 2019, Fangda Special Steel said increased steel output, rising raw materials prices and decreasing finished steel prices in the given year contributed to the declines in its operating revenue and net profit. 

Meanwhile, Fangda Special Steel said it expects that the slackening demand in the Chinese domestic market and strong pressures in the export market will exert a negative impact on the company’s performance in 2020. 

Fangda Steel Group has an overall annual steel capacity of 16.0 million mt. 


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