August 12 -- Xiamen Tungsten (600549.SH) posted a 139.04 percent year-on-year increase in first half 2011 net profit to 458 million yuan, with earnings per share of 0.67 yuan, reports stcn.com, citing a company filing.

The growth in net profit was attributed to the rising prices of tungsten powder and rare earth products.

Revenue from non-ferrous metal products increased 64.86 percent year-on-year to 2.926 billion yuan during the reporting period, with gross margin up 3.42 percent.

Revenue from new energy materials rose 77.73 percent to 926 million yuan, with gross margin rising 16.22 percent.

Xiamen Tungsten’s subsidiary put a rare-earth smelting production line into operation during the first half, contributing 526 million yuan to the subsidiary's revenue, up 186.53 percent. The net profit contribution was 161 million yuan, up 708.51 percent.

In addition, Xiamen Tungsten announced that it will invest 280 million yuan to set up a 400 million yuan joint venture, Jiujiang Jinlu Hard Alloy, with China Minmetals Non-Ferrous Metals.

Xiamen Tungsten will have a 70 percent stake in the joint venture, which will invest 804 million yuan to build production capacity for 3,000 tons of tungsten powder and 2,000 tons of hard alloys.

The company forecasts the joint venture will contribute annual revenue of 1.103 billion yuan and net profit of 130 million yuan.

According to the Semi-Annual report, Xiamen Tungsten’s subsidiary Chengdu Hongbo Industrial and its shareholder, ALMT corporation, plans to inject 79.9 million yuan into Chengdu Lianhong Molybdenum.

Hongbo Industrial holds a 49 percent stake in Lianhong Molybdenum, and will inject cash of 39.15 million yuan into Lianhong Molybdenum.

ALMT holds a 51 percent stake in Lianhong Molybdenum, and will inject its stake of 14.75 million shares in Xiamen Sanhong Tungsten worth 40.74 million yuan into Lianhong Molybdenum. Lianhong Molybdenum’s total capital will rise from 60 million yuan to 140 million yuan.