In the first three quarters of 2011, operating revenue and total profit of Fangda Special Steel soared 9.5% and 156.5% YoY respectively to RMB10.08 billion and RMB637.84 million. In the third quarter, its operating revenue reached RMB3.30 billion, up 11.88% YoY but down 14.76% QoQ.

Growth Rates of Operating Revenue and Total Profit of Fangda Special Steel, 2008- Jan. – Sept. 2011

Source: Fangda Special Steel; ResearchInChina

Fangda Special Steel is one of the few auto springs manufacturers that own complete production line of “smelting-rolling-molding” in domestic China, of which main products include screw steel, spring flat steel, high quality wire rod and vehicle leaf-spring. In the first half year of 2011, its operating revenue of spring flat steel reached RMB1.46 billion approximately, accounting for 22.7% of the total revenue of steel products; gross margin of spring flat steel achieved 10.57%, contributing to the total gross margin of steel products of 24.61%; meanwhile, operating revenue of vehicle leaf-spring increased by 5.3% YoY, with gross margin of 12.02%.

 It is expected that Fangda Special Steel will further extend the industrial chain, highlight the core competitiveness of spring flat steel, and expand production capacity of auto parts. Meanwhile, it will hold positive attitude towards acquisition of upstream mineral resources.