China Lucky Film Corp said on Tuesday that it will stop production of color film products due to a sharp decrease in demand in recent years.

The company said it will authorize its general manager to clear assets related with color film products.

The Baoding-based company, a fully owned subsidiary of China Aerospace Science and Technology Corp, had revenues of 827 million yuan ($130 million) in 2011, up 13 percent year on year. The company's net loss was 55.9 million yuan.

The annual report showed that the profit rate for color film products was only 6.66 percent.

In January, Eastman Kodak Co — the world's leading film product maker — filed for bankruptcy protection due to the impact of digital photography in recent years.