Yunnan Yunwei Cuts Loss in Q2     

Yunnan Yunwei Co., Ltd. (Yunwei, SH: 600725) says operating income fell 37.21% to RMB1.826 billion in the first half from a year earlier. It reported a net loss of around RMB100 million, or RMB0.346 per share.
   The company suffered loss as the global financial crisis spread into the real economies in 2009, which hurt demand for coal chemical products. The situation is severe especially in the first quarter, when the company suffered low utilization rates at its coking coal facilities and depressed product prices.
   However, the company's PVA line, its main product, started to run at full capacity as the government fiscal stimulus package started to take effect and the market demand bounced back. Production also fell while gross profit margin rebounded steadily. The company had a net loss of RMB3.37 million in the second quarter, down 96.53% from the first-quarter loss of RMB93.64 million.
   The company announced recently its unit, Yunnan Dawei Coking Co., Ltd., will acquire coal mining assets to ensure supply and step up cost control, which would further improve the company's market competitiveness and profitability.