Xining Special Steel Co, northwest China's largest special steel maker, said that its 2009 net profit leaped 314.57% despite a 25.62% drop in revenue.

According to its annual report filed with the Shanghai Stock Exchange Net profit hit CNY 34.77 million in 2009 on revenue of CNY 5.19 billion. Earnings per share quadrupled to CNY 0.05.

The company attributed its profit growth to lower production costs and rising work efficiency. It said steel demand will grow this year as the country's economic growth picks up.

The company added that urbanization and industrialization drives bring great potential for the development of nation's special steel industry in the long run. But the company noted China's steel overcapacity may weigh on its profitability and cause trade tensions.

Coupled with fierce competition from domestic steel makers, the company may face more uncertainties in 2010.

(Sourced from Xinhua)