A Year of Transformation
HONG KONG, April 15 /PRNewswire-Asia/ -- Vertically integrated heavy steel plate producer in China, Shougang Concord International Enterprises Limited (HKSE: 697), today announced the audited results of the Company and its subsidiaries (collectively the "Group") for the year ended 31 December 2009.
HK$ million Year ended 31 December
2009 2008
Turnover from continuing
operations 11,358 17,674
Net profit attributable to
shareholders 72 1,419
Basic Earnings per share
(HK cents) 0.9 19.7
Segmental performance
-- Mineral exploration segment comprises upstream investment in raw
material base. It made a profit of HK$1.14 billion, including HK$1.11
billion net profit through asset swap of shares in Mt. Gibson Iron
Limited, originally owned by the Group, with Fushan International
Energy Group Limited ("Fushan International") on 1 December 2009
-- Associate Fushan International contributed net profit of HK$40 million
-- Steel manufacturing segment made an attributable loss of HK$1.18
billion
-- Both steel and iron ore trading and shipping segments were profitable
from a loss-making first half, with attributable profit of HK$44million
and HK$31 million respectively.
Outlook
-- Raw material prices will continue to be strong
-- Steel prices will remain high from cost push
-- Apparent recovery but uncertainties linger
The most difficult year in the steel sector in this century brought about unprecedented challenges and opportunities. The Group saw an extreme low in March-April last year, resulting in severe losses among peers, but subsequently a strong rebound in the economy from concerted global stimuli. It also provided the Group an opportunity to successfully execute its integration strategy by acquiring upstream assets at lower cost; it now embraces a captive raw material base in iron ore and coking coal to enhance its steel production. The Group does see a transformation of earnings profile of the Group from 2010, as strong raw material demand is expected to continue from China, contributions from both mineral exploration and steel and iron ore trading segments shall be more significant. The management has been aiming to invest in value-adding growth, so as to enhance earnings quality and to repay shareholders' support.
The path to economic recovery is likely a bumpy one; the Group does have full confidence in the road ahead since it is well-equipped for the challenges in the future.
About Shougang Concord International Enterprises Limited
Listed since 1993, Shougang Concord International (SEHK:697, "SCI") is 43% owned by Shougang Corp., 7th largest Chinese steel maker by production in 2009. It is an integrated heavy plate maker with major downstream including infrastructure, machinery and shipping. SCI also holds a 25% stake in Fushan Energy, a mainland coking coal producer and has long term iron ore offtake agreement with Australia-listed Mount Gibson Iron Limited.
Investor and Media Enquiries:
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Jane Liu
Tel: +852-2522-1838
Email: jliu@prchina.com.hk
Henry Chik / David Shiu
Tel: +852-2522-1368
+852-2521-2823
Email: hchik@prchina.com.hk
dshiu@prchina.com.hk
