SHANGHAI, Jul. 26 (SMM) - Henan Yuguang Gold & Lead Co. was entitled to value-added-tax deduction of 16 million yuan ($2.6 million) for employing recycling methods in production.

Henan Yuguang received the VAT refunds, or 50% of it was levied, for recycling sulfuric acid from industrial exhaust gas as well as lead metal from battery scrap, it told Shanghai Stock Exchange today.

The company will record losses of 230-250 million yuan in the first half, compared to a profit of 15.7 million yuan in the same period a year ago, it said in a separate statement.

The loss-making was due to fall in base and precious metal prices and inventory write-downs, it said.