China Oriental Group Company (HKG:0581) expects to post a net profit of not less than 220 million yuan for the first half, up at least 70% from 123 million yuan a year earlier, according to a Wednesday Hong Kong bourse filing.

The company attributed the increase mainly to lower raw material costs, which declined faster than steel product prices, and to efficiency gains from its lean management strategy, including cost reduction, efficiency improvements, and procurement optimization.

Final interim results are scheduled for release by Aug. 31.