Fufeng Group (HKG:0546) expects its net profit for the six months ended June 30 to rise by about 700 million yuan from 1.04 billion yuan in the same period last year, according to a Monday Hong Kong bourse filing.

Shares rose more than 10% in Tuesday morning trade.

The expected gain in profit was driven by higher sales volumes of key products and a decline in major raw material costs, the company said.

Fufeng warned that geopolitical tensions, trade policies, and sluggish external demand could weigh on performance in the second half.