Sino Techfibre, the manufacturer of microfibre, polyurethane (PU) synthetic leather and pattern moulding paper (PMP) in China, today reported net profit attributable to shareholders of RMB6.4 million ($1.3 million) for the three months ended 30 June 2010 (2Q10).

Group revenue jumped 42.9% to RMB317.1 million as all of its core products — PU and Microfibre synthetic leathers and PMP — registered significant sales growth.

Sales of PU synthetic leather jumped 40.2% to RMB143.0 million, representing 45.1% of total revenue in 2Q10. Microfibre synthetic leather recorded a 57.7% increase in sales to RMB124.9 million and accounted for 39.4% of total revenue in 2Q10. The remaining sales contribution of 15.5% in 2Q10 was generated from the PMP segment, which grew 20.6% to RMB49.1 million.

In terms of volume sold, PU synthetic leather recorded a 6.3% increase, from 4.8 million square metres in 2Q09 to 5.1 million square metres. The group also sold 31.6% more microfibre synthetic leather, from 1.6 million metres in 2Q09 to 2.1 million metres in the latest second quarter. Correspondingly, sales volume of PMP products grew 28.6%, from 2.1 million metres to 2.7 million metres.

On a year-on-year basis, the group recorded double-digit growth in its average selling prices (ASPs) of PU and Microfibre synthetic leather in 2Q10, reinforcing management’s guidance that the group is recovering from the impact of the global economic crisis. The ASP for PU synthetic leather rose 31.0% to RMB27.9 per square metre while that for Microfibre synthetic leather improved by 23.3% to RMB59.9 per metre.

Compared with ASPs achieved from the preceding first quarter, the ASP for PU rose by 1.8% while that for Microfibre increased by 3.6%. The average price of PMP remained relatively stable.

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