China Flexible Packaging Holdings, the manufacturer of biaxially-oriented polypropylene (BOPP) film for making clear plastic bags, has reported revenue of RMB 728.8 million ($150 million) for the year ended Oct 31, 2009 or FY2009, a drop by 24.1% from RMB 960.3 million in FY2008.

China Flexible Packaging says the weak economy due to the global financial crisis, lower average selling prices of products, and lower sales to China’s food and beverage industry which was hit by the tainted milk scandal resulted in lower sales turnover.

Gross profit decreased to RMB 119 million in FY2009 from RMB 238 million in FY2008 resulting in the lower average selling price of products and higher fixed costs due to lower production volume.

The company posted net profit attributable to shareholders fell 64.3% to RMB 34.8 million in FY2009 compared to RMB 97.4 million in FY2008 due to the lower revenue and gross profit margin.

As at Oct 31, 2009, the group remains debt free with cash and cash equivalents standing at RMB 108 million.