China's listed iron and steel producers have posted strong profits for 2017 as the country's production capacity cuts reduced outdated supply and led to rising steel prices.
In an annual report filed with the Shanghai Stock Exchange, Xinjiang Bayi Iron and Steel Co. said its net profit surged more than 30 times last year to 1.17 billion yuan (about $185 million). Its operating revenue rose 69.44% to 16.76 billion yuan.
The company reported losses of more than 2 billion yuan in both 2014 and 2015, and shook off losses in 2016 with a net profit of 37 million yuan.
Hunan Valin Steel, one largeg listed steel company, made 4.12 billion yuan of net profit in 2017. This was a sharp contrast with a loss of over 1 billion yuan in 2016 and nearly 3 billion yuan in 2015.
The improved performance in both companies showed the positive outcomes for the steel sector from China's capacity cut efforts.
By last March 7, 11 steel companies that had released their annual reports made total profits of 20.13 billion yuan last year, in contrast with a loss of 1.25 billion yuan in 2016, data showed.
Cutting overcapacity in bloated sectors like steel and coal has been high on the government work agenda in recent years as production gluts ate into corporate profits and dragged economic growth.
China will cut ineffective steel capacity of 30 million tonnes this year, according to this year's government work report delivered last week.
(Writing by Jessie Jia Editing by Harry Huo)
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