Shandong Gold Group Co., one of the leading gold producers in China, reported a 23-percent plunge in its profits in 2018 due to lower gold prices.

Profits stood at 876 million yuan (around 130.75 million U.S. dollars), according to a statement filed to the Shanghai Stock Exchange Thursday.

Revenues hit 54.79 billion yuan, up 7.34 percent year on year.

Output increased 9.57 percent to reach 39.32 tonnes last year, despite a 6.28-percent decline in the country's total gold production.

Global gold prices fell sharply during the first half of last year, weighing down the company's profitability.

The gold producer's takeover of Veladero mine in Argentina increased its financing charges, pushing its financial costs to 792 million yuan, up 58.32 percent from a year earlier.

The company believes that gold demand will remain strong this year, as the U.S. dollar, the euro and the pound continue to depreciate. Gold output is expected to reach 37.87 tonnes this year, according to the statement.