Increasing domestic supply and sluggish overseas demand drove down H share Angang New Steel's net profit by 12 per cent in the first half to June 30.
The SAR-listed flagship of China's largest steel-maker posted a net profit of 197.26 million yuan (about HK$184.83 million), down from 224.26 million yuan for the same period last year.
Turnover rose 9.69 per cent to 4.73 billion yuan from 4.31 billion yuan. Operating profit fell to 320.14 million yuan from 326.91 million yuan.
The company's share price slipped 4.12 per cent to close at 93 HK cents yesterday in the wake of the result, released on Monday evening.
The company said domestic demand for iron and steel was great in the period and consumption of steel products showed stable growth.
'But the vibrant market led to a substantial increase in supply and intense competition,' it said.