H share Angang New Steel will invest 1.1 billion yuan (about HK$1.02 billion) to upgrade its technological production this year after seeing net profit fall 32.26 per cent to 69.85 million yuan - under international accounting standards - for the first six months of this year.
Director and secretary Fu Jihui said his company would try to gradually enhance its cost efficiency through technological upgrades in the face of falling steel prices caused by sluggish domestic and international demand, oversupply and competition at home and abroad.
Mr Fu said Angang would increase the production volume of cold rolled sheets and wire rods but would reduce that of the thick plates.
Cold rolled sheets and wire rods were still in a balanced supply-demand relationship but thick plates had suffered from insufficient demand in the international market, he said.
Turnover fell 6.79 per cent to 2.88 billion yuan from 3.09 billion. Earnings per share fell to 2.8 fen from 4.1 fen in the previous first half.