On October 30, Xinjiang-based Chinese steelmaker Bayi Iron and Steel Co. (Bayi Steel), a subsidiary of Chinese steel giant Baosteel Group, issued its financial results for the first three quarters of this year.
In the first three quarters, Bayi Steel achieved an operating revenue of RMB 21.505 billion ($3.4 billion), down 2.71 percent year on year, while it registered a net profit of RMB 70 million ($11.1 million), down 87.42 percent on year-on-year basis.
Meanwhile, in the third quarter the company achieved an operating revenue of RMB 7.363 billion ($1.2 billion), down 8.87 percent year on year. The company suffered a net loss of RMB 121 million ($19.2 million) in the given quarter, compared to a net profit of RMB 164 million in the third quarter of 2011.
Bayi Steel stated that in the third quarter its profits were impacted negatively by sharp declines in steel sales prices. In addition, in the third quarter the company's gross profit margin was 5.36 percent, down from 6.41 percent in the second quarter.
In 2012, Bayi Steel plans to produce 7.8 million mt crude steel and 7.4 million mt of finished steel, up 16.24 percent and 15.63 percent, both year on year.