According to source, board of directors of JISCO Hongxing passed company’s 2021 Year Operation Plan. And this plan includes producing 8.3 million tons cast iron, 9.5 million tons steel (0.99 million tons stainless steel), and 9.5 million tons steel products (0.92 million tons stainless steel), which plans to achieve operating income of 40.5 billion yuan.

Board of directors also passed company’s 2021 Year Fixed Asset Investment Project. And 29 new investment projects will be launched in 2021, with an estimated investment of 2.704 billion yuan. It is said that 384 million yuan will be invested in 2021. Besides, 24 projects will continue to be carried out, with a total investment of 3.065 billion yuan, and 880 million yuan will be invested in 2021.

JISCO Hongxing also announced, according to the preliminary estimation by its financial department, the company the annual net profit attributed to the shareholders of the listed company is expected to achieve 506 million yuan in 2020, which is 59.12% lower compared with the same period last year. After deducting non-recurring gains, the net profit attributable to shareholders of the listed company reached 471 million yuan, which is 58.88% lower compared with the same period last year.

Regarding on this, the company said that reduction was caused by following factors:

In 2020, an unexpected pandemic struck this company, and greatly shocked its construction project and operation departments. The annual steel price dropped year on year, and the purchase price of raw fuel fluctuated upward, which severely squeezed the profit space of the product.

Especially in the first quarter, the production of downstream steel enterprises got delayed, steel demand shrank seriously, and channels to import raw fuel resources was blocked. The epidemic also affected domestic land transportation, and the price of fuel rose continuously, leading to cost of logistics transportation and product production continued to rise.

Facing this adverse situation, the company adheres to Xi’s Sprits, and takes Chinese socialism as the guidance, and actively responds to the policies, which helped to accelerate the resumption of production. The companies also carried out special actions to improve the product quality, and achieve the transformation and upgrade.

Since the second quarter, with the pandemic being effective controlled in China, the company steadily resumed the production, and the losses started to reduce. In the third quarter, the company turned the loss into profit.

Posted by KAYSUNS, the stainless steel pipe and fittings supplier.