Yunwei Operating Income up 60% in 2008     

Yunnan Yunwei Co., Ltd. (Yunwei, SH: 600725) boosted operating income by 60.49% from a year earlier to RMB5.33 billion in 2008. Net profit fell 36.42% to RMB133 million, or RMB0.46 per share.
   The company posted favorable economic results in the first three quarters of 2008, but suffered loss in the final quarter which in turn dragged down full year earnings. The fourth quarter loss was due to the falling sales prices for polyvinyl alcohol, its main product, amid the economic downturn, and expanded production, plus higher marketing fees, overhead expenses and financing expenses as well as asset write-downs.
   However, both the sales prices and volume of coking products have gained remarkably in 2008, boosting Yunwei's sales revenue.
   Yunwei has focused on coal-based chemical production as its development strategy, amid industry consolidation.