Shanghai Electric H1 profits jump 15%

Shanghai Electric Group, one of China's largest mechanical and electrical equipment manufacturers, said Saturday its first-half profits rose 15.31 percent year-on-year, thanks to robust sales as the country builds more power plants to meet its demand for electricity. Net profits rose to 1.64 billion yuan (256.25 million U.S. dollars), or 0.13 yuan per share, from 1.42 billion yuan, or 0.11 yuan per share, one year earlier, the company said in a statement filed to the Shanghai Stock Exchange. Revenues increased by 10.69 percent from one year earlier to 33.72 billion yuan, of which, 2.94 billion yuan was made from the company's new energy sector, representing an increase of 24.7 percent year-on-year. Despite rising revenues, the sector's gross profit margins dropped 1.8 percentage points from one year earlier, due to intensified competition in the country's wind power industry, according to the statement. The electrical equipment maker said it will continue to strengthen its competitiveness and try its best to minimize the impact of rising raw material prices and labor costs on its profit margins.