China First Heavy Industries ends 2 years of losses with US$6.25m profit

State-owned China First Heavy Industries posted 41.45 million yuan (US$6.25 million) in profit in the first three quarters to end two years of losses amid China’s heavy machinery rally.

Its revenue surged 117.6 percent from a year ago to 6.6 billion yuan from January to September, it said in its financial report today.

The company secured 9.1 billion yuan in contracts in the first nine months, up 74.88 percent from a year ago, after orders started to surge from the second half of last year following a rebound in the domestic industry, the company said.

Sales of China’s heavy machinery products surged between January and September as 10,400 excavators, up 91 percent from a year ago, were sold, and 9,000 loaders were sold in the same period, up 75 percent year on year, according to 21-sun.com, a domestic heavy machinery trading website.

China First Heavy Industries has posted losses over the past two years, and the company has been warned by the Shanghai Stock Exchange that it could be delisted.