SGX Mainboard- and Taiwan Stock Exchange-listed China Taisan Technology Group Holdings, the producer of knitted performance fabrics, posted a seven-fold year-on-year (y-o-y) increase in net profit to RMB60.7 million ($11.8 million) for 3Q2010, backed by a strong turnover of RMB322.2 million, which went up 117.0% y-o-y riding on the strong demand for sportswear arising from the coming Guangzhou 2010 Asian Games.

The 117.0% y-o-y jump in revenue for 3Q2010 was achieved on the back of rising average selling price (ASP) and higher sales volume. The ASP for knitted performance fabrics, which accounted for 96.4% to the overall revenue for 3Q2010, improved 16.0% y-o-y and 3.1% q-o-q to around RMB80,300 per tonne due to accommodating the rise in raw material prices and higher pricing from the two new products launched in 3Q2010. The sales volume of knitted performance fabrics also jumped 94.6% y-o-y and 5.4% q-o-q to 3,864 tonnes in 3Q2010 due to the strong demand for sportswear arising from the coming Guangzhou 2010 Asian Games.

The gross profit margin of 26.2% for 3Q2010 was a sharp pick-up from the 9.4% for 3Q2009, and was even higher than that of 25.9% for 1Q2010 and 24.8% for 2Q2010. As compared to 3Q2009, the margin was supported by the new products with higher margins, a better product mix, and improved capacity utilisation.

China Taisan continued to maintain a healthy balance sheet, supported by cash and bank balances of RMB517.4 million as at 30 September 2010.

Lin Wen Chang, Chief Executive Officer of China Taisan, says: “Given our high utilization rate at the moment, we have to increase our production capacity by 2012 in order to capture the growing demand for our performance fabrics products.”