Shandong Gold Group Co., Ltd., one of China's leading gold producers, announced Saturday that it expected to see a more than 50 percent net profit rise in the first quarter this year.

The eastern Shandong-based firm attributed the net profit surge to the firm's growing production capacity, rising gold price and effective cost cutting measures, it said in a statement filed to the Shanghai Stock Exchange Saturday.

The gold producer raked in 155.3 million yuan (US$22.7 million) net profit in the first three months last year. The firm will give detailed net profit figures in its first-quarter report, according to the statement.

Its A-share price gained 4.6 percent to 74.97 yuan per share Friday.