Recently listed Gitic Enterprises, which triggered a debate on whether the Chinese securities watchdog had the power to regulate red chips, announced a 16.2 per cent jump in net profit to $41.6 million for the year ending December. The result was in line with the forecast in its prospectus of more than $41 million for last year. Turnover at the company - controlled by the Guangdong provincial government - rose 20 per cent to $332.4 million. Earnings per share were 13.9 cents, up 16.8 per cent. It is understood the company decided against holding a press conference to announce its results so that the senior management would not be grilled by reporters over the controversy surrounding its listing and regulation of red chips. Its listing last month almost flopped when the China Securities Regulatory Commission complained Gitic Enterprises had not obtained its approval for the flotation. The company, engaged in construction material manufacturing, trading and property in Guangzhou, earned interest of $52 million on the application funds it received for its public offer last month. Chairman Huang Yantian said the growth in turnover was mainly attributable to the increase in wholesale construction materials. The start of the operation of Hua Du City Wilfred Marble Co last month would help boost sales in China while processing costs and import duties on raw materials would be reduced, he said. In anticipation of growing demand for marble and granite products in Hong Kong and China, the company would focus on its core business of investing, trading, processing and contracting of construction materials in Hong Kong and China, Mr Huang said. The company's shares have almost quadrupled to a close of $4.025 yesterday from an issue price of $1.05.