October 20 -- Jilin Zixin Pharmaceutical Industrial (002118.SZ), a producer of ginseng and traditional Chinese medicine, recorded a 153.05 percent year-on-year increase in net profit to 158 million yuan during the first three quarters on a 106.7 percent rise in revenue to 536 million yuan, and earnings per share hit 0.31 yuan, reports National Business Daily, citing a company filing.

The company forecasts a 53-79 percent year-on-year increase in full year 2011 net profit due to the price of ginseng in Jilin Province remaining at elevated levels, and to increased processing capacity following the putting into operation of a processing plant.

Market insiders were disappointed with Zixin Pharma’s earnings growth as the company had reported a 325.01 percent year-on-year surge in net profit growth in the first half of 2011.

Trading in the shares of Zixin Pharma had been suspended since August 17 following media reports that the company could be producing counterfeit ginseng. The company has yet to disclose the results of its investigations into the reports.

According to the report, investors are worried that the company's shares may drop sharply once it resumes trading as share trading was suspended when the Shanghai Composite Index was trading at around 2,600 points. The index is currently trading at around 2,300 points.

Three funds, Manulife Teda Growth , Huafu Growth Trend , and AXS SPDB Value Growth, were among the top 10 shareholders through the end of the second quarter, with respective holdings of 4.34 million shares, 933,300 shares and 839,400 shares.

Teda Growth's stake was reduced to 3.1 million shares at the end of the third quarter, while the other two funds had dropped out from the list of the top 10 shareholders.