OREANDA-NEWS. October 24, 2011. This announcement is made pursuant to the disclosure obligations under Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, reported the press-centre of Angang Steel. 

The board of directors (the “Board”) of the Angang Steel Company Limited (the “Company”) wishes to inform the shareholders of the Company and potential investors that the unaudited net profit attributable to the shareholders of the Company and its earnings per share (basic) for the nine months ended 30 September 2011 are expected to decrease significantly as compared with those for the same period in 2010.

According to the unaudited management accounts (prepared in accordance with the accounting standards for business enterprises in the PRC), (i) the net profit attributable to the shareholders of the Company decreased from approximately RMB2,572 million for the nine months ended 30 September 2010 to approximately RMB239 million for the nine months ended 30 September 2011, representing a decrease of approximately 90.71%; and (ii) the earnings per share (basic) decreased from approximately RMB0.355 per share for the nine months ended 30 September 2010 to approximately RMB0.033 per share for the nine months ended 30 September 2011. Such decreases were primarily due to the significant increase in the prices of raw materials and fuels  which substantially exceeds the increase in the price of steel products of the Company.

However, according to the unaudited management accounts (prepared in accordance with the accounting standards for business enterprises in the PRC), (i) the net profit attributable to the shareholders of the Company increased from approximately RMB(-178) million for the three-month period from 1 July 2010 to ended 30 September 2010 to approximately RMB19 million for the same period in 2011; and (ii) the earnings per share (basic) increased from approximately RMB(-0.025) per share for the three-month period from 1 July 2010 to ended 30 September 2010 to approximately RMB0.003 per share for the same period in 2011.

The quarterly report containing detailed financial information of the Company and its subsidiary for the nine months ending 30 September 2011 (prepared in accordance with the accounting standards for business enterprises in the PRC) will be announced by the Company in due course.

Shareholders and potential investors are advised to exercise caution when dealing in the shares of the Company.