Existing business earnings decline

" Both projects are located in the downstream industry chain , the termination of these two projects will not have an impact on the company's existing operations in China Nonferrous network ." CMOC think . China Nonferrous network .
But in fact , once cut these two can bring to the company in the future growth of the equity investment projects , existing business alone , CMOC performance is difficult to appear optimistic expectations. China Nonferrous network .
"The company's basic no Aspect molybdenum products in China Nonferrous network ." Shanghai , a brokerage industry analyst at the metal interview with reporters , said the company is now the main product of the molybdenum market prices at a historic low , although the beginning of the year when there have been a wave rally, but not much. China Nonferrous network .
In fact, last year, the domestic price of molybdenum dropped to 100,000 yuan / ton historic lows, has been close to a lot of molybdenum mine production costs , but also led CMOC last year's third quarter , when performance falls significantly . China Nonferrous network .
Since the company's main molybdenum prices, CMOC in net profit last year despite only fell 6.07% on , but if the eliminating income tax rate reduction and other factors , the company 's main business profit last year actually decreased by 31%. China Nonferrous network .
Main results of last year which led to declining factors, in addition to Molybdenum tube , molybdenum and iron products, production decline and, more importantly, molybdenum products, profit margins decline, in 2012 , the company's products and precious metals molybdenum-related products profits have different degrees of decline, the only exception tungsten products , profit margins also increased by only 2 percentage points. China Nonferrous network .
As the downstream market demand , so that over-reliance on the downstream market CMOC had to face the dilemma of cuts . China Nonferrous network . According to the company 's forecasts, in 2013 the company's molybdenum concentrate production from 32,500 tons the previous year dropped to 29,200 tons , which previously has been substantial growth in tungsten , this year's production is also only a slight increase of 160 tons or so. China Nonferrous network .
For the company's future will continue to launch two terminated equity investment projects , CMOC did not give response. China Nonferrous network .
From the company's current financial situation, assets and liabilities rate of only 21.45% , 2012 Closing the monetary funds and 2.7 billion yuan , while in January this year, the company has just come up with 1.5 billion yuan in cash for the purchase of the bank's financial products, so the company money is not tight. China Nonferrous network .
"Expects the company's future may continue through the issuance of bonds to raise funds . China Nonferrous network ." Dongxing Securities analyst Lin Yang nonferrous metals industry were analyzed in the report had said.