Shougang Fushan Resources (HKG:0639) expects first-half profit attributable to owners to decline about 50% to 52%, to between HK$400 million and HK$420 million for the six months ended June 30, compared with HK$837 million a year earlier, according to an Aug. 8 filing.

Shares of the company declined over 1% in recent trade.

The drop was primarily driven by a 45% fall in average selling prices for clean coking coal, reflecting a 41% year-on-year decline in market prices.

The company also transitioned to mining lower coal seams in July 2024, discontinuing production of higher-priced low-sulfur premium coking coal, which further weighed on prices.

Interim results are expected by the end of August.