HONG KONG Feb 20 China's Yunnan Tin Co Ltd
, the world's largest tin producer, said it expected
to turn profitable in the first quarter, even while prices
remain low, after it halted production of loss-making products.
The company, based China's southern province of Yunnan, said
on Thursday it expected to post a net profit of 90-110 million
yuan ($14.8-$18.1 million) for the three months to end-March,
compared with a year-ago net loss of 194.1 million yuan.
"We have stopped production of some loss-making products and
have also halted investment projects that have little
contribution to the company," Yunnan Tin said in a filing on the
Shenzhen stock exchange.
The tin producer has been controlling costs and adjusting
its inventory to try and turn around its fortunes.
In a separate filing on Thursday, Yunnan Tin reported a net
loss of 1.27 billion yuan last year due to weak non-ferrous
metal prices and lower gross profit margins. That compared with
a 34.5 million yuan profit in 2012, it said.
Last year the company was also hit by the Chinese
government's drive to clamp down corruption.
In October, Chinese authorities arrested and charged the
company's chairman, Lei Yi, for accepting bribes of 20 million
yuan, including from the chairman of a company called Leed
International Education Group, in which Goldman Sachs has
Lei later resigned as chairman and was replaced by Gao
Wenxiang, formerly vice chairman, from Jan. 24.
The earnings announcements came after China's markets
Yunnan Tin's Shenzhen-listed shares closed down 0.96 percent
at 10.35 yuan, roughly in line with the CSI300 index
of the leading Shanghai and Shenzhen A-share listings, which
ended down 0.92 percent.
($1 = 6.0764 Chinese yuan)
(Reporting by Twinnie Siu; editing by Jane Baird)