August 5 -- Tongkun Group (601233) posted a 57.8-percent year-on-year increase in net profit to 496 million yuan in the first half of 2011, reports Shanghai Securities News, citing a company filing.

Sales revenue in the first half grew 42.27 percent year-on-year to 9.78 billion yuan. The company announced a stock dividend of ten shares and a cash dividend of eight yuan for every ten shares held.

The company’s production project for IPTA, a terephthalic acid, will be finished in the first quarter of next year. It will have an annual production capacity of IPTA of 1.2 million tons. The project is expected to generate sales revenue of 9.72 billion yuan, with an internal rate of return (IRR) of 32.16 percent and an investment payback period of five years.

The company will also invest 1.5 billion yuan in a production project for differential fiber. The project, which entails a total investment of 1.5 billion yuan and investment payback period of just over five years, is expected to generate sales revenue of four billion yuan after completion.

Tongkun Group will also start a POY and FDY differential fiber production project with annual production capacity of 400,000 tons of differential fiber and total investment of $270 million. The project is expected to generate sales revenue of $957 million and net profit of $96.6 million, with investment payback period of just under four years and an internal rate of return of 32.5 percent.

Source:CapitalVue