YUNNAN Tin Co., the world’s largest tin producer, expects to turn profitable in the first quarter, even while prices remain low, after it has halted production of loss-making products.

    The company, based in southwestern China’s province of Yunnan, said Friday it expected to post a net profit of 90-110 million yuan (US$14.8-US$18.1 million) for the three months to the end of March, compared with a year-ago net loss of 194.1 million yuan.

    “We have stopped production of some loss-making products and have also halted investment projects that have little contribution to the company,” Yunnan Tin said in a filing with the Shenzhen Stock Exchange.

    The tin producer has been controlling costs and adjusting its inventory to try and turn around its fortunes.

    In a separate filing Friday, Yunnan Tin reported a net loss of 1.27 billion yuan for last year due to weak non-ferrous metal prices and lower gross profit margins. That compared with a 34.5-million-yuan profit in 2012, it said.

    Last year, the firm was also hit by the government’s drive to clamp down corruption.

    In October, authorities arrested and charged the company’s chairman, Lei Yi, for accepting bribes of 20 million yuan, including from the chairman of a company called Leed International Education Group, in which Goldman Sachs has a stake.

    Lei later resigned as chairman and was replaced by Gao Wenxiang, formerly vice chairman, from Jan. 24.

    Yunnan Tin’s Shenzhen-listed shares closed up 8.28 percent at 11.20 yuan Friday, while the benchmark Shanghai Composite Index ended down 1.17 percent at 2,113.69.

    (SD-Agencies)