Gem-Year Shows 35 Times Profit Gain in H1

According to a report Gem-Year Industrial Co., Ltd. released on August 12, its operating income in H1 was RMB1.661 billion, up 42.22% over the corresponding period last year. The net profit belonging to all shareholders reached RMB94.8583 million, which in the corresponding period last year dropped by RMB2.7472 million. The company has turned its loss to surplus (increasing by 35 times) and EPS was RMB0.12.

Gem-Year’s increase in operating income was mainly contributed by the substantial growth in the sales of railway fasteners. Data show that the company’s operating income from fasteners was RMB1.286 billion, up 63.58% over last year’s record; the operating cost was RMB0.941 billion, up 44.74% over last year’s record; the gross profit increased by 9.53% to 26.85%. As Chinese government offers support to railways, Gem-Year has got a long list for fastener orders. The company has won the bid for supplying RMB96.3564 million worth of fasteners used on heavy-duty railways and has signed the contract in July 2014. As of June 30, fasteners hadn’t been supplied after the contract was signed totaled RMB0.258 billion. On August 8, the company announced that it has also won the bid for supplying fasteners used on the newly built high speed rails connecting Xi’an and Chendu (Shaanxi Section) for RMB0.254 billion.