Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
(Stock Code: 0347)
PROFIT WARNING
This announcement is published by the Company simultaneously in Shenzhen pursuant to the Rules Governing the Listing of Stocks on Shenzhen Stock Exchange and in Hong Kong pursuant to the disclosure obligations under Rule 13.09(2) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).
The Board hereby announces that the Company is expecting to record a decrease in the net profit attributable to shareholders of the Company for the nine months ended 30 September 2019 in comparison with the corresponding period of 2018.
Shareholders and potential investors are advised to exercise caution when dealing in the shares of the Company.
This announcement is published by Angang Steel Company Limited*( 鞍 鋼 股 份 有 限 公 司) (the "Company") simultaneously in Shenzhen pursuant to the Rules Governing the Listing of Stocks on Shenzhen Stock Exchange and in Hong Kong pursuant to the disclosure obligations under Rule 13.09(2) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong). The board of directors of the Company (the "Board") hereby announces that the Company (together with its subsidiaries, the "Group") is expecting to record a decrease in the net profit attributable to shareholders of the Company for the nine months ended 30 September 2019 in comparison with the corresponding period of 2018.
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Details of and the reasons for such estimated decrease are set out below.
1. ESTIMATED DECREASE
For the nine months ended 30 September
2019 | 2018 | ||
Decrease | |||
as compared | |||
with the | |||
corresponding | |||
period of 2018 | |||
(RMB) | (%) | (RMB) | |
(Unaudited) | |||
Net profit attributable to shareholders | approximately | approximately | 6,855 million |
of the Company | 1,722 million | 74.88% | |
Basic earnings per share | approximately | Adjusted: 0.729 | |
0.183 |
For the period from
1 July to 30 September
20192018
Decrease | |||
as compared | |||
with the | |||
corresponding | |||
period of 2018 | |||
(RMB) | (%) | (RMB) | |
(Unaudited) | |||
Net profit attributable to shareholders | approximately | approximately | 2,415 million |
of the Company | 297 million | 87.70% | |
Basic earnings per share | approximately | Adjusted: 0.257 | |
0.032 |
Note: according to the profit distribution of 2018 implemented by the Company on 28 June 2019, the Company issued 3 additional shares for every 10 shares to all shareholders through conversion of capital reserve, and the share capital has changed from 7,235 million shares to 9,405 million shares. As such, basic earnings per share for the nine months ended 30 September 2019 and the corresponding period of last year were calculated based on the share capital after such conversion.
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2. REASON FOR THE ESTIMATED DECREASE
For the nine months ended 30 September 2019, the net profit attributable to shareholders of the Company decreased substantially as compared with the corresponding period of last year, which was mainly due to following factors: firstly, the steel price plunged as a result of the sluggish domestic automobile and household appliance industries and other factors; secondly, the dam-failure accident of the tailings dam of the Vale of Brazil and strong demand of domestic steel and iron enterprises for iron ore drove up the price of raw materials, which greatly narrowed the margins of steel and iron enterprises.
The financial information for the nine months ended 30 September 2019 set out above is solely based on preliminary assessment by the Company in accordance with the unaudited management accounts (prepared in accordance with the PRC Accounting Standards for Business Enterprises) and is not based on the financial information audited or reviewed by the Company's auditors. Shareholders of the Company and potential investors should note that detailed information on the Group's performance for the nine months ended 30 September 2019 will be disclosed in its results announcement for the same period to be published in due course. There may be differences between such information and the estimated financial information set out above.
Shareholders and potential investors are advised to exercise caution when dealing in the shares of the Company.
By Order of the Board
ANGANG STEEL COMPANY LIMITED*
Wang Yidong
Executive Director and Chairman of the Board
Anshan City, Liaoning Province, the PRC
14 October 2019
As at the date of this announcement, the Board comprises the following Directors:
Executive Directors | Independent Non-executive Directors |
Wang Yidong | Wu Dajun |
Li Zhen | Ma Weiguo |
Ma Lianyong | Feng Changli |
Xie Junyong | Wang Jianhua |
- For identification purposes only
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ANSTEEL - Angang Steel Company Limited published this content on 14 October 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 October 2019 13:20:08 UTC