China Taisan Technology Group Holdings, the producer of multi-functional knitted performance fabrics, used in sports and casual apparel for renowned brands such as Nike, Adidas, Umbro, Li-Ning, Anta, Metersbonwe and Xtep, says it achieved an 11.4% fall in net profit attributable to shareholders of RMB62.1 million ($12.8 million) in 4Q09 from 4Q08.

In 4Q09, the group achieved sales of RMB332.2 million, which was comparable to the RMB329.9 million in 4Q08.

Gross profit declined by 15.7% yoy from RMB 104.1 million in 4Q08 to RMB 87.8 million in 4Q09 as selling prices are still recovering. However, gross profits have been improving sequentially with margin recovery on better production utilisation rates and a gradual shift back to higher margin products. Gross profit margin rose 170 bps to 26.4% in 4Q09 from 9.4% in 3Q09.

China Taisan says the group remained in a strong financial position with a net cash position of RMB374.8 million as at end FY2009. It generated positive cash flow from operations of RMB225.9 million compared to RMB205 million as at end FY2008.

In view of the group’s improving financial performance and business outlook, the directors have proposed a final dividend of RMB3.45 cents per share for FY2009, representing 30% of full year earnings.