Fuxing China says net profit rose 129% to RMB 22.7 million ($4.4 million) for the third quarter ended 30th September 2010 (3Q2010) on the back of a 17% increase in revenue to nearly RMB150.0 million. The strong 3Q2010 performance boosted the group’s 9M2010 net profit by 138% to RMB 48.5 million and revenue by 40% to RMB 462.4 million.

For 3Q2010, sales of the group’s core Zipper segment comprising finished zippers, zipper chains and zipper sliders amounted to RMB 142.1 million or 95% of total revenue compared to RMB 83.3 million in the previous corresponding period (3Q2009). This represented an increase of 70%, as both local and export sales grew healthily due to the recovering global and Chinese economies. Gross margin of the core zipper segment rose to 29.2% compared to 19.0% in 3Q2009.

The Group’s gross profit increased by 150% to RMB 41.7 million in 3Q2010 and the gross margin improved by 14.7 pts to 27.8%, as gross margin of zipper business continued to improve up to 29.2% in the current quarter, and sales contribution from low-margin Trading activities declined to RMB 7.9 million from RMB 39.1 million in prior year.

Fuxing China says as the roup moves into the final quarter, the group is on track to install 100 zipper machines for production for its new patented product - Super Durable Zipper - which is expected to generate a higher profit margin and for which production has started for its customers.