(Yicai Global) July 20 -- Chongqing Zaisheng Technology Co. [SHA:603601], a Chinese environmental protection firm, plans to invest CNY126 million (USD18.5 million) to set up two new companies after substantially increasing its operating income and net profit in the first half of this year.

The company's operating income surged 51.6 percent on the year to CNY217 million according to the semi-annual report it published yesterday. Net profit grew 46 percent to CNY44.2 million. The statement attributed the improved performance to increased environmental requirements, enhanced energy conservation awareness and strong development of key products.

Alongside releasing the report, the firm said it would invest CNY100 million to set up a Shanghai-based subsidiary and CNY25.8 million to establish a firm in Chongqing. Shanghai Zaisheng Clear Air Research Co. will be a wholly-owned subsidiary engaged in the research and development of environmental technology. The parent company will own an 86-percent stake in Chongqing Baoman New Material Co., the other new firm, which will focus on the research, development and production of filter materials.

Chongqing Zaisheng Technology focuses mostly on the production of glass-fiber filter paper, vacuum insulation panels and other environmentally-friendly materials. Its latest report said it made moves to expand its industrial chain in air purification during the first half, by purchasing a 100-percent stake in Suzhou U-Air Environmental Technology Co. and setting up Beijing Zaisheng Clean Air Technology Co., and will continue to push in this direction.