Angang Steel Co., Ltd., or Ansteel, a listed arm of major Chinese steel producer Anshan Iron and Steel Group, predicted an annual net profit decline of 78.22 percent for the first quarter of 2019.
In a filing to the Shenzhen Stock Exchange, Ansteel, listed both in Shenzhen and Hong Kong, said it expected to make a net profit of 417 million yuan (62.1 million U.S. dollars) in the first three months of the year.
The Liaoning-based company said the profit decline was due to the decreasing steel product price and the rising prices of coal and iron ore.
In its annual financial results released in March, the company said its net profit attributable to shareholders reached 7.95 billion yuan in 2018, up 19.8 percent year on year.
Meanwhile, the company’s revenue increased by 14.7 percent year-on-year to around 105.16 billion yuan last year.