Mainland steel maker Angang Steel late on Tuesday warned of a 73 per cent fall in its net profit in the first half of the year as market conditions deteriorated rapidly.
Net profit attributable to shareholders will slide to 155 million yuan from 577 million yuan at the same period of last year, it said in a statement on both the Hong Kong and Shenzhen stock exchanges.
Its effective efforts in cutting cost and improving efficiency as well as the disposal of some shares in subsidiary Zhuzhou Group failed to offset the impact of tumbling steel prices, the company explained.
“The indices of market elasticity have declined, which led to a dramatic reduction in profit margins,” Angang said.
Source: South China Morning Post