Sino Grandness Food Industry Group, the manufacturer and export-oriented supplier of canned fruits and vegetables, today announced a 25.6% jump in its net profit to RMB66.2 million ($13.7 million) for the full year ended 31 December 2009.

This was achieved on the back of higher sales of canned asparagus and mushrooms, which improved 22.7% and 97.3% respectively y-o-y, as the group secured more orders from customers in Europe and North America.

Gross profit margin expanded by 3.7 percentage points, from 28.5% in FY2008 to 32.2% in FY2009, mainly led by a decrease in the cost of raw materials.

Excluding the expenses related to the group’s initial public offering (IPO) amounting to RMB16.0 million, the group’s net profit would have been higher at RMB82.2 million, representing growth of 56%.

Sales of mushrooms registered the highest growth at 97.3%, while sales of asparagus jumped 22.7% due to more orders from Europe and North America. As a result of higher sales and lower costs of raw materials, gross profits for both product segments improved 111.9% and 36.7% to RMB34.7 million and RMB62.5 million respectively.

Sales of long beans decreased 15.4% due to lower production as farmers harvested less long beans, partially a result of bad weather. Despite lower sales, gross profit for long beans increased 16.4% to RMB20.8 million, demonstrating the group’s production efficiency.

During the year, Sino Grandness started sales of canned beverage in China and registered revenue of RMB51.8 million or 11.5% of total revenue.

Geographically, Europe was the largest revenue contributor at 67.5%, while China and North America accounted for 17.6% and 10.3% respectively. Sales in China recorded the highest jump – 401.5% – because of the launch of the group’s canned beverage. Europe and North America grew 10.9% and 16.5% respectively.

In line with the group’s policy to distribute at least 20% of net profits attributable to Shareholders in FY2009 and FY2010, Sino Grandness has declared a tax-exempt, one- tier dividend of RMB0.054 per ordinary share.