Yunnan Tin Company reported a net profit of RMB 77.1 million (US$12.1 million) for the first half of 2012, down 78% year-on-year. In the period its operating revenue slid 12% from the same period last year to RMB 5.62 billion ($885 million). While there was an improvement in sales revenues in Q2, profit margins slipped further. The company expects to barely break even in Q3. Second quarter operating revenue of YTC was RMB 2.828 billion, up by 12% from the first quarter, but Q2 net profit was RMB 36.9 million, down by 9%. Net profit in January-September is forecast at only RMB 81 million, 85% lower than in the first three quarters of last year.
The company produced 72,381 tonnes of non-ferrous metals in the first half, up by 3.2% year-on-year. Out of that total tin production was 31,870 tonnes, up by 4.3%. In this respect YTC had a better performance than almost all other Chinese tin producers, most of which reported declines in output. YTC also produced 8,632 tonnes of tin chemicals in the first half of this year, up by 7% y-o-y, while production of tin products (mainly solder) fell by 1.4% to 9,054 tonnes.