17 AUGUST 2012Platts
China XinRen Aluminum reports 97% fall in Q2 profit
Edited by : AL CIRCLE
2 min read
China's XinRen Aluminum Holdings Wednesday posted a net profit of Yuan 4.9 million ($771,872) for the second quarter of 2012 ended June 30, which represented a sharp fall of 96.8% from the profit of Yuan 150.7 million recorded for Q2 2011.
For the first half of the year, however, the company posted a net loss of Yuan 5.3 million, compared with a profit of Yuan 263.5 million achieved the year before.
"It has been an extremely difficult six months for upstream aluminum producers in China because of weak product prices worldwide, lower volume sales and rising costs, especially for electricity," XinRen Executive Chairman Zeng Chaoyi said.
Revenue in Q2 dropped 8.6% from a year ago to Yuan 1.72 billion, with revenue in H1 also down 18.4% to Yuan 3.16 billion from H1 2011.
The decrease in revenue was "due primarily to the lower average selling price and lower sales volume for the primary aluminum ingots and fabricated products," Xinren said.
Listed in Singapore, XinRen has two smelters in China's Guizhou and Hubei provinces with a combined capacity of 275,000 mt/year. The group is also in the process of doubling its fabrication capability in Jiangsu province to 100,000 mt/year, which is scheduled for trial production by December.
For the first half of the year, however, the company posted a net loss of Yuan 5.3 million, compared with a profit of Yuan 263.5 million achieved the year before.
"It has been an extremely difficult six months for upstream aluminum producers in China because of weak product prices worldwide, lower volume sales and rising costs, especially for electricity," XinRen Executive Chairman Zeng Chaoyi said.
Revenue in Q2 dropped 8.6% from a year ago to Yuan 1.72 billion, with revenue in H1 also down 18.4% to Yuan 3.16 billion from H1 2011.
The decrease in revenue was "due primarily to the lower average selling price and lower sales volume for the primary aluminum ingots and fabricated products," Xinren said.
Listed in Singapore, XinRen has two smelters in China's Guizhou and Hubei provinces with a combined capacity of 275,000 mt/year. The group is also in the process of doubling its fabrication capability in Jiangsu province to 100,000 mt/year, which is scheduled for trial production by December.
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