Baosteel announced her achievement gained during the first half year

It was yesterday that Baosteel Co., Ltd announced the achievement gained during the first half year: the general revenue amounting to RMB 94.124 billion has already been obtained from her business operation, increasing by 28.64% comparing to the same previous time; the total integrated profit has reached RMB 12.

2 billion, increasing by 76.86??comparing to the same previous time; the net profit sees RMB 8.671 increasing by 83.97%; the earning of each share reaches 0.47, increasing by 80.21% comparing to the same previous time; the net asset yield reads 9.8 %, increasing 3.56% comparing to the same previous time.

During the period of the first half year, facing the tough situation in which the prices of the raw materials such as iron alloy and stainless steel escalated wildly, Baosteel did everything to knock down the procurement cost so as to sustain and keep on the raw material supply, the procurement cost of the raw material has been considerably reduced by reinforcing tactical procurement and optimizing the raw material application structure.

Baosteel promotes the application of the low nickel pig iron and scrap stainless steel instead of the imported nickel plates and actively introduces using the gargantuan ocean liners to ship the raw material along the Brazilian shipping line and domestic coastwise routes by involving shipping line so as to boost the shipment efficiency by vessels; and Baosteel took the lead in concluding long-term agreements with the home outstanding enterprises for raw material transportation through marine and waterway among the domestic steel making enterprises.

During the first half year and by realizing a serial of assignments such as to promote the integrated cooperation persistently to reduce the cost and increase the profit, the throughput scale in Baosteel Co., Ltd grows steadily and product structure has been optimized further, some key project progresses smoothly, the indexes of each production activity and operation increase calmly, the general condition of production and operation proves very good.

10. 8315 million tons of slabs and ingots as the commodity haven been sold, among them,3.74 million tons of the self-owned and leading products have been marketed .A serial of new products are quite promising during development, the welded pipes of super strength pipeline steel have been turned out from trial production, Baosteel has become No.

1 steel pipe maker which is capable to make the X120 pipeline steel in China and No. 4 in the world; Steel of B220/260ZE have already passed test and obtained with the acceptance filling up the blanks in the domestic demand; all t the products turned out from ERW have evenly passed the assessment, among them, welded pipes of N80-Q, P110 and seamless welded pipes of 13Cr are already put into use in oil well boring.

The products manufactured by Baosteel Co., Ltd have succeeded in application in the Hi-Tech fields and in the key projects, the Q460E construction structure steel of highest degree in China, which is developed solely by Baosteel, is used in relocation project of CCTV, the heavy plates are now introduced in the construction of the crude oil storage tanks of 150,000m3 project for Sinopec, the high ?Cchromium B13Cr110 casings that can resist the corrosion by carbon dioxide are successfully used in boring the gas wells measuring deeper than 3800 meters in New Northeast are for Sinopec.

Moreover, Baosteel has been ranked as the very best supplier in 2006 for General Motors Corporation, which means Baosteel is the only one steel maker for General Motors Corporation among his 89 best suppliers all over the world.

Baosteel has achieved excellent achievement in aspect of environmental protection and energy saving, on the precondition that requires for great amount of energy consumption from product structure variation, Baosteel promotes to use the advanced managerial technologies in environmental protection energy saving, the indexes of environmental protection energy saving keep on nonstop improving, during the first half year, the comprehensive energy consumption /ton/steel drops 8.

24 kilogram/coal equivalent comparing to that of last year, the dust fall rate in the atmosphere and sulfur dioxide emission drop 21.18% and 19.66% respectively, chemical substance consumption declines by 47.07%.In March, Baosteel was granted with a merit Bronze Plate stating "Modern Enterprise Ecological Area" by the China's Ecology Association.

The projects of Baosteel which are under construction progress quiet smoothly: No.3 Hot rolling Project was put on stream on 30th March; The very first silicon steel normalizing-Annealing line that is designed, assembled and constructed by Baosteel was successfully performed with hot load test and put into operation 30th May; the progress of No.5 Cold Rolling project is generally controlled within the construction I milestone schedule, and some parts are ahead of schedule a little.