Jul. 25, 2012 (China Knowledge) - Anhui
Quanchai Engine Co Ltd<600218
>, principally engaged in the manufacture and sale of small power multi-cylinder and single cylinder diesel engines, announced yesterday that it expects its net profit to fall between 50% and 100% YoY in the first half of this year.
In the first six months of 2011, the company's net profit was RMB 41.66 million.
company said in a statement that the sharp drop in net profit was due mainly to a drop in gross profit margin that was squeezed by higher raw material cost, and to a significant decline in investment income.
Anhui Quanchai Engine earlier reported a net profit of RMB 13.84 million for the first quarter of this year, 38.46% less than in the same period of last year. Core business revenue climbed 1.71% YoY to RMB 772.30 million in Q1.