Net profit totaled 10.83 million yuan (1.66 million U.S. dollars), and earnings per share stood at 0.0241 yuan, a decrease of 35 percent from 2009, the company said in a statement filed with the Shanghai Stock Exchange.

The profit-making ability of the company saw sharp decline in 2010 as the profit reduction was registered along side a 31 percent increase in business revenues which reached 936.4 million yuan, according to the statement.

The company attributed the performance mainly to surging cost of raw materials and fierce competition from transnational companies which have more powerful brands.

The company would continue its strategy of focusing on market in rural areas and small cities and keeping away from big cities where some international brands have already established their market share.