Fushun Special Steel realised an increase in both operating income and profit in 2020, and its steel sector gross margin increased to 21.94% from 16.69% a year earlier, Kallanish notes.

In 2020, the firm reported a CNY 6.27 billion ($954 million) operating income, up 9.26% year-on-year. Net profit, meanwhile, increased by 82.64% y-o-y to CNY 552m. Net profit has shown faster growth since the first quarter of 2020 due to a reduction in operating costs.

Fushun Special produced 641,700 tonnes of crude steel and 504,600t of finished steel in 2020, up 8.45% and 7.84% y-o-y respectively. Within this, the company produced 504,568t and sold 500,847t of special steel throughout the year, up 7.84% and 6.68% y-o-y separately.

For 2021, the firm intends to produce 640,000-680,000t of crude steel and 510,000-540,000t of finished steel, of which 480,000-510,000 are classified as key products. It expects to earn CNY 6.5-7 billion in operating income and CNY 500-700m of net profit.