Sales Margins at Chinese Nonferrous Metals Enterprises Were 4% in 2012, against 0.46% at Key Lead and Zinc Enterprises

SHANGHAI, Mar. 26 (SMM) – Peng Tao, Executive Vice Secretary-General of Lead & Zinc Branch of the China Nonferrous Metals Industry Association (CNIA) attended the 8th “Shanghai Copper & Aluminum Summit” on March 22. According to Mr. Peng, 20 key lead and zinc enterprises surveyed by the CNIA reported RMB 136.42 billion in costs from their main business during 2012, up 13.3% YoY, compared with RMB 147.53 billion in revenues from main business, up a mere 8.9% YoY. Growth in costs from main business outpaced that in revenues by a large margin. Profits at these surveyed companies were RMB 680 million, down 85.5% YoY. Six out of these 20 companies suffered losses, totaling RMB 2.74 billion, up 66.3% YoY. Sales margins at the surveyed enterprises fell 3.0 percentage points to 0.46%, while debt ratio rose 4.3 percentage points to 69.4%.      

Sales margins from main business of nonferrous metals companies across China slid 1.4 percentage points to 4%. Of these, sales margins were 12.3% at mining companies, down 3.4 percentage points, and 2.5% at smelters (including those with self-equipped mines), also down 2.1 percentage points. These figures indicate falling profits in the entire lead and zinc industries.