Shagang Group’s net profit down 26.69 percent in 2011

Major Chinese steelmaker Shagang Group has announced that in 2011 it achieved a total operating revenue of RMB 14.99 billion ($2.38 billion), rising by 19.59 percent year on year, while its net profit totaled RMB 262 million ($41.65 million), down 26.69 percent compared to 2010. The earnings per share (EPS) of the company in 2011 amounted to RMB 0.17 ($0.027).
 
Despite the global economic downturn and the severe imbalance between supply and demand, Shagang Group recorded stable growth in its sales in 2011 through its initiative in research and its product portfolio adjustment. However, due to the sharp increase in raw material costs such as iron ore, Shagang Group's net profit in the given year indicated a significant decline.