August 15 -- Jiangsu Zhongda New Material Group (600074) reported that its net profit rose to 4.77 million yuan in the first half of 2011, with earnings per share (EPS) of 0.007 yuan, reports Modern Express, citing a company filing.

Zhongda’s revenue increased to 978 million yuan, and total profit rose to 18.34 million yuan during the reporting period.

Zhongda’s earnings per share (EPS) were 0.031 yuan in this first quarter, but it fell to 0.007 yuan in the second quarter. Zhongda expressed that its gross margin declined in the second quarter and was blamed on an oversupply of soft plastic materials.

According to Zhongda’s 2010 financial report, it incurred a loss of 304 million yuan in 2010, due to large amounts of inventory impairment. Zhongda has cancelled the depreciation difference in its four subsidiaries since this year. It will add pre-tax profit of 13.33 million yuan during the fixed-asset depreciation period.

Shares of Zhongda have fluctuated in recent months, affected by rumors regarding its restructuring.

According to an unnamed source, most institutional investors of Zhongda sold their shares in the second half of last year.