September 07, 2008

Baosteel 2007 annual operating revenue created a historical high

Baoshan Iron & Steel Co Ltd announced its operating results for year 2007, 22,600,000 tonnes of commercial billet sales; CNY 191,560 million of total operating revenue up by 18.0% YoY creating a historical high; CNY 19,310 million of total profit, CNY 13,420 million of net profit; CNY 0.73 earning per share and 14.37% of return on equity.

In 2007, the company focused on 43 integration synergetic projects falling into 7 categories, including integration of production, sales and R&D, centralized purchase, centralized sales, technology promotion and transplant, managerial technique promotion, management integration and informationization construction etc, with remarkable synergetic efficiency achieved in the year.

Amid the fierce market competition, the company continues to maintain comprehensive competitive edges in the sectors of high end products that it concentrates on. The product mix keeps being optimized, and the sales of strategic products and exclusive leading products continue to grow rapidly. 7.39 million tonnes of exclusive and leading products were sold in the year accumulatively. The domestic market shares of cold rolled automotive sheets, appliance sheets, tin plates and pipeline steel in 2007 are 50.3%, 36.8%, 18.9% and 34.5% respectively, continuing the domestic leadership.

While achieving the best operating results in the history, the company carried forward the projects under construction smoothly. In 2007, the company completed CNY 22.54 billion of fixed assets investment. A batch of key capital construction and technical revamping projects such as Baosteel Branch's No.3 hot strip mill project, Majishan Phase 2 extension project, cold rolled sheet plant's comprehensive revamping project for adjustment of product mix, Stainless Steel Branch's cold-rolled stainless steel strip project, Special Steel Branch's special metallurgical cold roll blank project, Meishan Steel's relocated overhaul of 1# coke oven, etc were completed and put into operation ahead of or on schedule.

In 2007, centering on the construction of technical innovation system, the company strived to improve the efficiency and effect of the conversion of innovative achievements into productivity. In the whole year, the R&D input ratio was 1.05%, 800 patents were applied for including 350 invention patents, 1962 technical know how were formed and over CNY 1.3 billion of R&D economic benefits was realized.