July 28 -- Xiangyang Automobile Bearing (000678) posted a 74.48 percent year-on-year decrease in net profit to 2.07 million yuan in the first half of 2011, reports China Business News, citing a company filing.

Sales revenue in the same period increased 11.94 percent year-on-year to 476.4 million yuan.

The company attributed the decrease in net profit to higher raw material prices and lower gross margins.

In the first six months, the company posted an 11.75 percent year-on-year increase in revenue from its auto components business to 443.68 million yuan, while gross margin fell 6.47 percentage points to 8.04 percent.

Sales revenue from overseas markets rose 142.44 percent year-on-year to 53.77 million yuan in the first half, while revenue from the domestic market hit 389.92 million yuan, up 4.02 percent.