China-based Yongxing Materials has expanded production by 50pc after completing trial production in Q2. The company’s production and sales increased in Q2 (April-June) after a weak performance in Q1 due to the pandemic, said the company in its earning release. In Q2, sales rose by 2.62pc from the prior year. The company mainly produces special steel materials and stainless steel rods, wires and special alloys.
The company is running at full capacity and has overcome the COVID-19-related difficulties. At present, the capacity utilization rate of Yongxing Materials has amplified significantly with steady orders. Production and sales have improved with recent operational improvements, said the company.
In Q2, the company completed the successful trial of its high-performance SS continuous casting transformation project for the first steel making plant. With this, the average monthly output in the second quarter increased by about 50pc from prior periods. This also effectively improved production efficiency of rolling steel, high quality stainless steel, rods and rolling wire with an annual capacity of 250,000mt. Rod and wire rolling efficiency improved by 10pc in Q2 from the prior year.
The company’s operating profit in H1 declined 9.98pc from the previous year to CNY2.23bn ($0.32bn) while net profit was CNY102.81mn, down 24.25pc from the prior year. Operational performance in H1 was weak as production was hampered in Q1 due to the impact of COVID-19 which hit not only production but also sales volumes of special steel. Production and sales only improved in Q2 which stabilized the company’s H1 performance.