Jan. 7, 2011 (China Knowledge) - China's Hunan Valin Steel Co Ltd<000932
>, which is engaged in smelting, manufacture and sales of iron and steel products, announced that it expected to see a net loss between RMB 1.8 billion and RMB 2 billion last year, sources reported.
In the first half of last year, Hunan Valin reported a net loss of RMB 400 million, and the figure continued to increase to RMB 1 billion in the third quarter of last year, or a net loss of RMB 15 million on every working day in the period from July to September, according to statistics from Hunan Valin.
The company attributed the huge loss to the high ore purchase cost, new production lines at initial operation period and the transformation of product structure which could not well integrated with the existing management, marketing and research system.
In addition, the Shenzhen
-listed firm announced on Oct. 13, 2010 that it has won approval from the China Securities Regulatory Commission to launch a private placement, but it did not disclose any further details about the share offering.