Shandong Gold Mining Co. Ltd., a major gold producer in China, reported Thursday that its net profit rose 17.08 percent year on year.

In its annual business report filed to the Shanghai Stock Exchange, the Shandong-based company said its net profit reached 746 million yuan (109 million U.S. dollars) last year. The earnings per share stood at 1.05 yuan, up 16.67 percent from the previous year.

The company attributed the surge in net profit mainly to its increasing gold output, which reached 17.67 tonnes last year and rose 11.86 percent year-on-year, due to better management practices and acquisition of new goldfields.

As of 14: 38, shares of Shandong Gold Mining declined 0.74 percent, compared to the previous close, to 69.87 yuan per share despite the profit jump report.