Foam and fabric manufacturer Ziwo Holdings says net profit grew 41.7% to a quarterly record of RMB33.7 million ($6.5 million) for the group’s third quarter ended 30 September 2010 (3Q10).

For the latest quarter, the group reported a 56.7% increase in revenue to RMB140.3 million, due mainly to the increase in production capacity coupled with the continuous strong market demand for its products, as sales volume for the quarter grew 39.2% to 10,194 tonnes..

In 3Q10, SBR and other foamed materials continued to be the main contributor to Ziwo’s sales and accounted for RMB88.8 million or 63.3% of the group’s total sales. In terms of sales volume, this product segment was also the biggest for the group at 6,966 tonnes, a 43.8% increase from 3Q09. ASP for high foamed PE, foamed SBR and foamed EVA rose by 21.1%, 12.1% and 5.9%, respectively.

30D TFY, which is the second biggest contributor, recorded RMB40.3 million or 28.7% of the group’s total sales for the quarter. Sales volume for 30DTFY rose 34.8% to 2,743 tonnes in 3Q10 and ASP grew by 14.1%.

Sandwich mesh fabric contributed RMB11.2 million, or the remaining 8.0%, to the group’s 3Q10 revenue. This product segment registered a 9.1% increase in sales volume to 485 tonnes and ASP increased by 17.3%.

In 3Q10, overall gross profit increased by 50.8% to RMB45.5 million due mainly to the higher sales volume and product average selling price (ASP) achieved. However, overall gross profit margin decreased by 1.2 percentage points to 32.5% in 3Q10 as a result of the increase in raw material prices which were proportionately higher than the increase in the group’s product ASP.

On 12 September 2010, Ziwo announced that it is considering a proposal to offer and list Taiwan Depository Receipts (TDRs) on the Taiwan Stock Exchange. Ziwo intends to issue and allot new ordinary shares for the TDR issue.

Barring unforeseen circumstances, Ziwo believes the group will continue to maintain its growth driven by the expanded production capacity.