Mainboard-listed Ziwo Holdings, the China-based raw material producer, today reported a 12.2% year-on-year growth in its net profit to RMB32.4 million ($6.5 million) for the second quarter ended 30 June 2010 (2Q10), boosted by its increased production capacity and the continued strong demand for its products.

The increase came on the back of a 39.7% increase in revenue to RMB135.7 million, as sales volume for the same period rose 21.6% to 9,794 metric tonnes in 2Q10.

During the reporting quarter, the group also further raised the average selling prices (ASP) for all of its products by an approximate range of 5% to 18%, to cushion the impact of increase in raw material prices.

SBR and other foamed materials was the major contributor to the group’s revenue, accounting for 60.7% of its 2Q10 total sales. The sales volume for this product segment was also the biggest for the group at 6,497 tonnes, a 21.3% increase from 2Q09. ASP for high foamed PE, foamed SBR and foamed EVA rose by 17.9%, 11.9% and 5.4%, respectively.

30D TFY, which accounted for 29.8% of total 2Q10 sales, recorded revenue of RMB40.4 million — a 46.9% jump compared to the previous corresponding quarter. Sales volume for 30DTFY rose 24.1% to 2,760 metric tonnes in 2Q10, while its ASP grew by 18.4%.

Sandwich mesh fabric contributed RMB12.3 million, or 9.1%, to the group’s 2Q10 revenue. This product segment registered a 13.1% increase in sales volume to 537 metric tonnes, while its ASP increased by 18.2%.

Bullet proof vests, a new product segment recently launched in 2Q10, recorded sales of RMB0.6 million.