Sinopipe Holdings, the manufacturer of plastic pipes and pipe fittings, says it posted a 136.9% rise in net profit to RMB 5.4 million ($1.1 million) in for the three months and full year ended 31 December 2009 (4Q2009) from RMB 2.3 million recorded in 4Q2008.

Revenue for 4Q09 increased 10% to RMB 251.4 million from RMB 228.5 million. Gross profit, on the other hand, dipped by 6.2% from RMB 46.5 million in 4Q08 to RMB 43.6 million in 4Q09 while gross profit margin was lower at 17.3% in 4Q09, compared to 20.4% in 4Q08.

For FY2009, revenue declined RMB 34.5 million, or 4.2% to RMB 795.1 million, compared to RMB 829.6 million recorded in the previous corresponding year (FY2008). The lower revenue was caused by a decline in revenue for drainage and sewerage, telecommunication and electrical, water-saving irrigation and fuel gas operating segments under the plastic pipe segment.

Gross profit decreased 16.2% from RMB 197 million in FY2008 to RMB 165.1 million in FY2009 while gross profit margin dipped from 23.7% to 20.8% year-on-year. The decrease was mainly due to downward pressure on average selling prices.

Net profit declined 41.3% year-on-year from RMB 66.2 million in FY2008 to RMB 38.9 million in FY2009. The lower net profit recorded was mainly the result of lower revenue generated and the lower gross profit margin registered.

Sinopipe says it also posted a foreign exchange loss of RMB 0.4 million in FY2009 from the revaluation of a US$15 million bank loan taken out in March 2008 which also helped lower net profit for FY2009.

Overall, earnings per share for FY2009 declined to 17.26 RMB cents compared to 29.42 RMB cents for FY2008. Net asset value per share as at 31 December 2009 was 233.23 RMB cents, compared to 215.97 RMB cents as at 31 December 2008.