Jiangxi Copper has reported a 30 per cent quarter-on-quarter fall in net profit as high raw material and energy costs pared margins.
In a statement filed with the Shanghai Stock Exchange, where the company's A shares are listed, Jiangxi Copper said first-half net profit was 626.41 million yuan, a rise of 207.7 per cent year on year.
However, second-quarter profit decreased to 257.91 million yuan from 368.5 million yuan in the first quarter, based on mainland accounting standards, due to the high cost of copper concentrate and power.
The drop came despite a 41.46 per cent increase in the production of copper cathode in the quarter.
Gross profit margin of copper cathode production fell to 12.7 per cent from 25.3 per cent previously, despite a year-on-year increase of about 50 per cent in the selling prices of copper cathode to 25,474 yuan a tonne.
The company attributed the decline to a 25.7 per cent year-on-year drop in processing fees to 2,620 yuan a tonne. It did not give a quarterly breakdown.