Li Heng Chemical Fibre Technologies, one of China’s leading manufacturers of high-end nylon fibres, says it posted revenue of RMB2 billion ($413 million) for the financial performance for the full year ended 31 December 2009 (FY09), 46% lower than in FY08.

Net profit after tax in FY09 fell 84% lower to RMB130.3 million in line with the lower revenue and gross profit.

Li Heng says the lower revenue was the a result of the slowdown in the global economy in 2008 which in turn led to price pressure on the group’s nylon yarn products.

Although overall average selling prices (ASPs) of nylon yarn products has been stabilising since June 2009, Li Heng says ASPs in FY09 of RMB18,980 per tonne is still about 37.3% lower than RMB30,250 per tonne in FY08.

Despite the drop in revenue, Li Heng says it continued to capture more market share and grew its customer base in FY09 to 209 customers from 184 at the end of FY08.

Gross profit for FY09 was RMB250.9 million, 76.4% lower as compared to FY08 and gross profit margin contracted to 12.6% from 28.7%.

In 4Q, net profit jumped 585.2% to RMB42.3 million compared to 4Q08 while revenue fell 21.6% to RMB551.9 million.

As at 31 December 2009, the group says it has net current assets at RMB753.7 million and a net cash inflow of RMB125.1 million from its operating activities while cash and bank balances stood at RMB654.5 million.