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Baosteel takes 1.69B yuan exchange loss, FY'15 net profit down 82.5% to 1.01B yuan

said March 30 that its 2015 net profit attributable to shareholders dropped 82.51%year over year to 1.01 billion Chinese yuan, or 6 fen per share, slightly higherthan the previously announcednet profit figure of 961 million yuan in its preliminary results.

The companyattributed the decline to weak demand for steel products, falling steel prices andexchange rate reform in China.

Operatingrevenues dropped 12.61% year over year to 163.79 billion yuan. Finance costs surged to 2.39 billion yuan from 488 million yuan,as the company booked an exchange loss of 1.69 billion yuan in 2015, compared to89 million yuan recorded in 2014.

The companyalso booked an impairment on assets of 1.39 billion yuan in 2015, up from 480 millionyuan in 2014.

Baosteelexported 2.6 million tonnes of steel products in 2015, representing an increaseof 276,000 tonnes from a year ago.

The companyexpects its operating revenues to reach 160.4 billion yuan this year. Full-yearproduction of iron and steel is targeted at 26.8 million tonnes and 27.1 milliontonnes, respectively.

The companyplans to cut operation costs by 4 billion yuan. CapEx forthis year is estimated at 14.16 billion yuan, of which the company will invest 6.32billion yuan in its Zhanjiang steel project, which is expected to this year.

As of March 30,US$1 was equivalent to 6.47 Chinese yuan.