本钢板Ｂ：2013年半年度报告（英文版）(9)

本钢板Ｂ：2013年半年度报告（英文版）

Bengang Steel Plates Co., Ltd. Interim Report 2013 Chapter IV. Board of Directors’ Report

I. Business overview

A. Business overview

In the report period the countries iron & steel industry has been facing a severe economic situation and greater difficulties in operation. The Company has been focusing on the business targets setout at the beginning of year, keep improving its product composition, international market exploring, and cost control. Good effects were shown in the aspects of product competition, market share, and lower costs.

In the first half of year, the Company realized the output of iron 5.065 million tons, an increase of 4.5% YoY; of steel 5.0899 million tons, an increase of 4.64% YoY; hot rolling plate 4.8748 million tons, an increase of 8% YoY; cool rolling plate 973.2 thousand tons, an increase of 1.87% YoY; turnover of RMB22,513,900,400, and decrease of 1.43% YoY; net profit of RMB167,484,000, an increase of 15.36% YoY.

B. Influence of the macro economy to the Company‟s business operation

Under the impact of economy reconstruction, depressed demand and redundant production capacity, the country‟s iron and steel industry is facing great challenge which was reflected in the following aspects: Firstly the total output marked historical peaks one after another, the situation of oversupply will last. Secondly, the prices in both domestic and international market were in depressive situation and forced the sales prices down to the production costs. The profit margin was further narrowed.

Thirdly, trade conflicts happen frequently toward Chinese exporters, and put them under significant pressure.

II. Analysis of main business

Overview

In the report period, the Company‟s main businesses were steel plates, steel billets, and side products. No change has been m ade on the profit composition and sources.

Change in main financial data

In RMB Yuan

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