China's Yili Industrial Group, one of the country's leading dairy producers, said its first-half-year net profit rose 35.58 percent due to improved quality control and supply chain management.

Net profits rose to 344.72 million yuan (50.7 million U.S. dollars) in the first half of 2010, the company said in a statement filed with the Shanghai Stock Exchange Sunday.

Earnings per share stood at 0.43 yuan, compared with 0.32 yuan one year earlier. Also, business revenues climbed 20.27 percent to 14.69 billion yuan in the first half, it said.

Yili noted that its surge in profits resulted from strengthened quality control, improved product structure, better supply chain management and brand promotion, while facing price hikes in raw materials and fierce competition from international brands.