Shenzhen Fuanna Bedding and Furnishing (002327) reported that its net profit grew 79.28 percent year-on-year in the first half of 2011 to 85.67 million yuan, reports National Business Daily, citing a company filing.
Fuanna Bedding used funds raised in its IPO to invest in five programs. Specifically, it spent 143 million yuan on the third phase of facilities in Changshu city, Jiangsu province in the first half of 2011. It invested 40.72 million yuan in the program in the same period last year, accounting for 28.4 percent of the planned investment. The third phase of the Changshu facilities will be operational on June 30, 2011.
In addition, Fuanna Bedding plans to complete the construction of the second phase of Longhua Bedding on August 31, 2011. The program is 42 percent complete.
According to an announcement made in January, Fuanna Bedding planned to invest additional 92 million yuan to the Changshu program. As of the end of 2011, the Changshu program accomplished 20.83 percent.
According to an unnamed source, the Changshu program will include 910 digital sewing machines and work benches after the investment, with bedding capacity increasing by 1.3 million units to 3.8 million units, which would generate revenue and net profit of 480 million yuan and 54.9 million yuan per year, respectively.