Baoshan Iron and Steel Co Ltd, the nation's largest listed steelmaker, on Thursday reported higher preliminary earnings for fiscal year 2012.

The company said its net profit rose 39.98 percent year-on-year to 10.3 billion yuan ($1.63 billion).

According to the preliminary earnings estimate, which is un-audited but basically reflects the company's 2012 operational performance, Baosteel generated 191.5 billion yuan in revenue in 2012, down 14.08 percent year-on-year, and its operating income decreased 59.13 percent to 3.61 billion yuan.

The Shanghai-based steel mill cited worsening steel supply/demand imbalances, low steel prices, as well as rising iron ore prices as the reasons behind the slump in its operating income.

The company stayed profitable in 2012 through its equity investment proceeds, which totaled 9.58 billion yuan.