Yunnan Tin Company (YTC), the world’s largest tin producer, reported a 25% fall in profits in 2006, despite a 33% increase in its sales.
Net income fell to 212.6 million yuan (US$27 million) from the previous year’s 285.1 million yuan, the company said in an annual report to the Shenzhen Stock Exchange today, Bloomberg News reported. Sales rose 33 percent to 4.82 billion yuan.
YTC’s profit was eroded by as much as 113 million yuan following cuts in China’s export tax rebates and the yuan’s gains against other major currencies, the company said. The company also lost 1.21 million yuan last year from futures trading, it said.
China lowered its tax rebate on exports of tin and some other metals at the start of last year. The yuan has climbed 4.3 % against the U.S. dollar since China scrapped a decade- long peg in July 2005, revalued it by 2.1 % and allowed it to trade against a basket of currencies.
YTC’s refined tin production rose by 23 % to 52,399 tonnes in 2006, including output from its Singapore Tin Industries joint venture.
