Yunnan Tin Co., Ltd (YTC) has released much improved first half 2014 financial results. Its operating revenue reached RMB 11.186 billion yuan (US$1.81 billion) in the first half of the year, a 6.9% rise from that of 2013. Net profit attributable to shareholders reached RMB 170 million yuan (US$27.5 million). EPS was CNY 0.15. Although the profit margin is still slim, it compares very favourably with the record losses recorded in the first half of last year
YTC said its good performance was attributable to the deepened reform of the organisation and enhanced efficiency. The company also strengthened its market analysis to avoid price fluctuation risks (inventory write-offs as prices fell were a major contributor to last year’s losses). Meanwhile, Yunnan Tin made great efforts to reduce operating costs through adjusted company structure and a rationalisation of inventory holdings.
Trading in YTC shares on the Shenzhen stock exchange has been suspended since 6 May and the suspension is expected to last for nearly three months owing to a reorganization of assets. Domestic news media have speculated that it may relate to a merger with Yunnan Hualian Zinc & Indium Stock Co., Ltd. Yunnan Hualian has reserves of 300,000 tonnes of tin, 5,699 tonnes of indium and 3,240,000 tonnes of zinc.
