December 02, 2008

Sichuan Hongda sees H1 net down by 95% YoY

Reuters reported that China's Sichuan Hongda Co net profit in H1 2008 would fall at least 95% YoY to 98% YoY due to a shutdown caused by a devastating earthquake in May.

China's Sichuan Hongda Co in a statement filed to the Shanghai Stock Exchange said that the company's operations have not yet fully returned to normal after the earthquake on May 12 forced its subsidiaries in southwest China's Sichuan province to halt production.

The statement said the quake caused direct economic losses of CNY 160.2 for the company. It said a sharp decline in zinc prices in China has also eroded the company's profit margin.

Zinc futures on the Shanghai Futures Exchange have tumbled, with the price of the most-active contract down 46% over the past 12 months.