Mainboard-listed Hu An Cable Holdings, one of the top 10 cable and wire manufacturers in China, has posted a 30.2% surge in net profit to RMB134.1 million ($25.9 million) for the nine months ended 30 September 2010 (9M10) from RMB103.0 million a year ago.

9M10 revenue increased by 77.3% year-on-year to RMB1,673.1 million on the back of higher sales across all its business segments. The cable and wire segment contributed RMB1,128.6 million or 67.5% to the overall revenue, while the contribution from the other segments including copper rods increased from 13.1% in 9M09 to 32.5% in 9M10.

Gross profit increased by 39.2% to RMB239.9 million for 9M10 as against RMB172.3 million for 9M09, which was in line with the increases in revenue. Gross profit margin decreased from 18.3% in 9M09 to 14.3% in 9M10. The lower gross margin was primarily due to a change of product mix with increased sales from lower margin product of copper rods.

Dai Zhi Xiang, CEO & Executive Chairman of Hu An Cable, says, “We are optimistic with the outlook for the remainder of this year with the sizable orders from our customers. We are on track with our expansion plans in mid to ultra-high voltage power cables and copper rods manufacturing. Together these will further strengthen our foothold in China’s cable and wire market and contribute to our profitability.”