Mainboard-listed Delong Holdings, one of the leading manufacturer sof hot-rolled steel coils (HRC) in China, announced today that its net profit jumped 467.9% to RMB 166.7 million ($33.6 million) for the first half year results ended 30 June 2010 (1H2010).

Delong says the strong performance was achieved on the back of a 21.9% increase in revenue to RMB 2.4 billion in 2Q2010 from RMB 2.0 billion on 1Q2010. Underlining the improvement in the financial performance for 2Q2010 was the rise in the average selling price and sales volume of HRC in the second quarter as compared to the corresponding period. Revenue from mill rolls also contributed to 0.81% of the Group’s revenue in 2Q2010.

Gross profit also increased 79.4% to RMB 208.3 million in 2Q2010 from RMB116.1 million 1Q2010 due to the increase in the average selling prices and sales volume of HRC.

While the near-term operating conditions may be challenging, the Delong’s management remains cautiously optimistic of the prospects of China’s steel industry as underlying domestic demand for HRC is expected to remain strong within China.