July 20 -- Paint producer Chongqing Sanxia Paints (000565) said first half 2011 net profit decreased 21.22 percent year-on-year to 12.33 million yuan despite a 13.96 percent rise in revenue to 245 million yuan, reports p5w.net, citing a company filing. Earnings per share hit 0.07 yuan.

According to Sanxia, the gross margin of its products dropped while expenditure increased.

The cost of materials increased 16 million yuan year-on-year in the first half. Inflation resulted in higher expenditure on labor, interest expenses, and transportation.

Source:CapitalVue