August 30 -- Xinyu Iron and Steel posted a 19.15 percent fall in net profit from the first half of 2011 to 221 million yuan despite a 20.22 percent jump in revenue to 19.95 billion yuan, with earnings per share of 0.16 yuan, reports yicai.com, citing a company filing. Percentage changes cited in this report are year-on-year.

The Jiangxi province-based firm produced 4.42 million tons of iron and completed 51.04 percent of annual output, rising 1.3 percent; 4.57 million tons of steel, completing 51.06 percent of annual output, up 3.2 percent; 4.41 million tons of billet steel, hitting 52.31 percent of annual output, up 1.5 percent.

Xinyu Steel blamed the profit drop on higher costs of raw materials and fuel, as well as fierce competition. 

The company plans to issue fewer than 400 million shares by the private placement to raise 2.5 billion yuan to acquire the exploration rights of the Tiekeng, Liangshan and Taiping mines in Xinyu city, as well as the Liuyuan mine in Xiajiang, Jiangxi province, in order to ease pressure on the high cost of raw materials, the source added.

Source:Capitalvue