OREANDA-NEWS. September 05, 2011. The board of directors (the “Board”) of Chongqing Iron & Steel Company Limited (the “Company”) wishes to present the unaudited interim results of the Company and its subsidiaries (the “Group”) for the six months ended 30 June 2011, reported the press-centre of Chongqing Iron & Steel Company.

 This interim results announcement (the “Announcement”) is excerpted from the full text of the 2011 Interim Report (the “Interim Report”). For more details, investors are recommended to refer to the full text of the Interim Report. The Announcement has been considered and approved by the Board and the Audit Committee of the Company.

This Announcement is prepared in Chinese and English. If there is any difference between the Chinese version and the English version, the Chinese version shall prevail.

In the first half of 2011, China’s macro economy ran on a steady track, with economic growth rate somewhat slowing down and the GDP posting a year-on-year increase of approximately 9.6%. Driven by domestic economic growth, the steel industry continued to maintain rapid development during the reporting period. However, due to the combined impact of such factors as relatively fast capacity utilization in the sector, slower growth in downstream steel-consuming industries, and substantial rises in the price of raw materials, the steel market has shown fluctuation of prices, which caused operation difficulties for iron and steel enterprises and left their profitability at low levels.

During the reporting period, according to relevant requirements for eliminating outdated capacity and implementing environmental relocation, the Group carried out relocation and upgrade of the 2700mm rolling mill production line, in accordance with the environmental relocation plan.

Thanks to the coordination and support from Dadukou District, Chongqing (the “Old District”), and Jiangnan Town, Changshou District, Chongqing (the “New District”), the Group saw steel production in the Old District stabilized and capacity of the New District utilized. The parallel operations in both the New District and the Old District enabled the Group to enhance its production scale considerably, but somewhat increasing the operating costs at the same time.

During the reporting period, the Group produced 1,390,000 tonnes of coke, 2,900,000 tonnes of pig iron, 3,140,000 tonnes of steel and 2,870,000 tonnes of steel products (billets), representing an increase of 38.36%, 36.42%, 38.95% and 50.71% respectively as compared with the same period of last year. The Group recorded operating revenues of RMB13,039,290,000, representing a year-on-year increase of 84.73%, and pre-tax profit of RMB15,103,000, representing a year-on-year increase of 93.01%.

Full reports see here: http://www.cqgt.cn/admin/uploadimages/2011-8-26/201182622441077529.pdf