Delong Holdings Limited announced unaudited consolidated earnings results for the second quarter and half year ended June 30, 2018. For the quarter, the company reported sales of RMB 3,760,950,000 compared to RMB 3,199,044,000 a year ago. The increase in revenue was principally attributed to a significant increase in average selling prices of hot rolled coil amid tighter supplies following ongoing production curbs and growing demand from the construction and infrastructure sectors, despite a decrease in sales volume due to the cessation of operations at the Group's subsidiary, Aoyu Steel Co. Ltd. since August 2017. Profit before tax was RMB 559,913,000 compared to RMB 454,957,000 a year ago. Net profit attributable to equity holders of the company was RMB 484,320,000 or RMB 4.40 per basic and diluted share compared to RMB 380,847,000 or RMB 3.46 per basic and diluted share a year ago. Net cash provided by operating activities was RMB 71,754,000 compared to RMB 1,242,077,000 a year ago. Payments for property, plant and equipment were RMB 223,417,000 compared to RMB 153,631,000 a year ago. Net cash from operating activities decreased mainly to the increase in bank balances pledged as a result of higher utilization of the credit facilities within the Group as well as the decrease in the utilization of letters of credit during the period under review.

For the half year, the company reported sales of RMB 6,710,943,000 compared to RMB 6,185,748,000 a year ago. The increase in revenue was principally attributed to a significant increase in average selling prices of hot rolled coil amid tighter supplies following production cuts and driven by infrastructure and construction activities in the PRC as compared to the previous corresponding period, despite a decrease in sales volume. Profit before tax was RMB 889,509,000 compared to RMB 891,022,000 a year ago. Net profit attributable to equity holders of the company was RMB 765,097,000 or RMB 6.94 per basic and diluted share compared to RMB 768,636,000 or RMB 6.98 per basic and diluted share a year ago. Net cash provided by operating activities was RMB 139,727,000 compared to RMB 2,232,348,000 a year ago. Payments for property, plant and equipment were RMB 337,676,000 compared to RMB 145,172,000 a year ago. Net cash from operating activities decreased mainly to the increase in bank balances pledged as security to banks for the issuance of notes payable within the Group. Net asset value per share or the group was RMB 48.68.

For the second quarter ended June 30, 2018, the company reported impairment loss for property, plant and equipment was RMB 34,616,000.