Recently, Xining Special Steel logged off its wholly-owned subsidiary Xigang Mining Development Co., Ltd. and established three wholly-owned subsidiaries to undertake related business. The close of Xigang Mining is mainly due to dispersed iron ore resource held by it and its high administrative cost.
Operation Revenue and Operation Cost of Xining Special Steel’s Fine Iron Powder Product, 2009-2011
|
|
Operation Revenue
|
Operation Cost
|
Operation Revenue YoY
|
Operation Cost YoY
|
|
2011H1
|
504.2
|
209.2
|
48.8%
|
21.8%
|
|
2010
|
786.1
|
357.5
|
109.0%
|
51.8%
|
|
2009
|
376.1
|
235.6
|
-56.9%
|
-31.0%
|
Source: Xining Special Steel; ResearchInChina
Xining Special Steel is a resource-based special steel manufacture integrated with special steel smelting, iron ore & coal mining. At present, its operating cost is higher than the industry average level, which is partly because that its financial cost is high due to part of mineral projects invested by Xining Special Steel has not yet put into operation.