Fuxing China sees net profit jump 61% to $3.3m

Zipper manufacturer Fuxing China Group says net profit increased by 61% to RMB17.7 million ($3.3 million) for the first quarter ended 31 March 2011 (1Q2011) results.

During the period under review, revenue increased 56% to RMB168.3 million.

Revenue from the Zipper Segment and the Trading Segment increased 57.5% and 55% respectively. Sale of Zippers reached RMB 139.5 million or 82.8% of total revenue, with improved contributions from finished zippers, zipper chains and sliders arising from the increase in volume due to strong demand from customers in China and overseas markets as a result of the improvement in the economy. Trading Segment contributed RMB 28.8 million or 17.2% of total revenue, up 55% from a year ago.

Fuxing’s gross profit increased 88% to RMB43.9 million in 1Q2011 compared to the corresponding period last year. Overall Gross Profit Margin (GPM) improved by 4.5 pts to 26.1% from 21.6% in 1Q2010, while GPM for Zipper segment rose to 31.0%.