Mainboard-listed Li Heng Chemical Fibre Technologies, the manufacturer of high-end nylon fibres, today announced a net profit after tax for the three months to 30 September 2010 (3Q10) was 78.8% higher at RMB71.2 million ($13.8 million) compared to 3Q09.

Revenue posted was RMB890.4 m, a 71.5% rise compared to its corresponding period 3Q09 on the back of improving demand and higher average selling prices (ASPs) for high-end nylon yarns as well as an increase in sales volume supported by the new Liheng Phase III yarn production facilities.

Total sales volume for nylon yarns rose 35% to 33,500 tonnes. The group’s overall ASPs have improved 27% to RMB26,610 per mt in 3Q10. On top of better demand and improving macro operating environment which led to increasing main raw material PA chips costs and in turn, ASPs of the group’s products, part of the higher ASPs was also attributed to the anti-dumping tariffs imposed on imported PA chips since April 2010.

As at 30 September 2010, the group maintained a healthy balance sheet and liquidity with net current assets at RMB538.9 million and a net cash inflow of RMB273.1 million from its operating activities while cash and bank balance stood at RMB396.8 million.