On March 18, Chinese steelmaker Hunan Valin Iron and Steel Group Co., Ltd issued its annual report for 2009, stating that, influenced by the depressed situation of the steel industry, the net profit of the company decreased by almost 90 percent year on year.
In 2009, the steel producer's revenue totaled RMB 41.503 billion ($6.08 billion), down 26.31 percent, while its net profit amounted to RMB 0.12 billion ($17.58 million), down 87.4 percent, both compared to 2008
The company states that the decrease of its main business income in 2009 was due to weak market demand and also to the decline in steel prices. The fall in net profit, the steelmaker said, was due to the increase in raw material prices and the decrease in steel prices.
The company is targeting sales revenue of RMB 60.5 billion ($8.86 billion) in 2010.