Gem-Year Industrial’s Mid-term Financial Result Shows YOY Decrease

Gem-Year released its mid-term financial result on August 19. In the first half of the year, the company lost RMB20.77 million, turning from profit into a loss of RMB0.026 dollars per share. In the corresponding period last year, it had a net profit of RMB94.85 million. In the current period, its operating income dropped 30.13% to RMB1.161 billion owing to decreased income in railroad fasteners. Gem-Year says the decreasing steel price drop in H1 and the consequent drop in average price have led to weak profit growth in fasteners despite the fact that the sales scale has expanded. Additionally, delayed delivery for the high-speed rail order has led to a 70% drop in sales of high-speed rail fasteners and in gross profit margin.