Baosteel Inc?has seen its?net profits drop by 42.79 percent year-on-year to 7.36 billion yuan ($1.67 billion) in 2011, according to its newly-disclosed annual report. The company also said it plans to pay cash dividends of 2 yuan per 10 shares.

The company's gross revenue in 2011 increased to 222.86 billion yuan, up 10.1 percent year-on-year, the report shows.

China's iron and steel industry was squeezed by price hikes in raw materials – notably iron ore, whose import price jumped 28.2 percent year-on-year in 2011. Profit margins now stand at the lowest among all industries nationwide, which has caused an "era of meager profits" for the entire steel industry.