On April 9, Chinese steelmaker Pangang Steel Vanadium & Titanium Plant Co., a subsidiary of Sichuan Province-based Chinese state-owned steel producer Panzhihua Iron and Steel (Pangang Group), announced that it has decided to issue medium-term notes worth a total of RMB 2.7 billion ($434.1 million) on April 16, with the notes due to mature after three years. Industrial and Commercial Bank of China (ICBC) will be the lead underwriter. The capital raised by the issue of the notes will mainly be used to replenish working funds and to repay loans.
Meanwhile, on April 10 Pangang Steel Vanadium & Titanium Plant Co. stated that for the first quarter this year it expects to achieve a net profit in the range of RMB 250-300 million ($40.19-48.23 million), down 43-52 percent compared to RMB 526.11 million ($84.58 million) recorded in the corresponding period of last year. Meanwhile, basic earnings per share (EPS) for the first quarter this year are estimated at RMB 0.029-0.035 ($0.0047-0.0056). The company said that the significant fall in its profitability in the quarter in question was principally caused by declining prices of iron ore concentrate and titanium and the fall in income from its investments.