China Minzhong Food Corporation says it achieved a 37.9% rise in net profit to RMB294.6 million ($59.5 million) for the nine months ended 31 March 2010 (9M2010) from RMB213.6 million in 9M2009.

Revenue rose 39.2% to RMB1,136.4 million in 9M2010 from RMB816.4 million from higher sales of both processed vegetables and fresh vegetables produce.

Both businesses benefitted from the group’s strategic shift towards a higher-value portfolio, which led to higher average selling prices (ASP) as well as increased sales volume with the positive reception from customers.

Sales volume of fresh vegetables produce increased by 27.0% to 114,072 tonnes, resulting in a 37.6% increase in revenue to RMB373.0 million. Processed vegetables, which recorded 40% revenue growth to RMB763.4 million, benefitted from a 21.7% rise in ASP as well as a 15.0% increase in sales volume to 71,874 tonnes. Air-dried vegetables in particular, which is a higher- value product, saw a 100.4% jump in sales during the period.

In tandem with the revenue growth, the group’s gross profit rose 39.5% to RMB446.5 million. Gross profit margin maintained at above 39% while net profit margin maintained at above 25%.

On the balance sheet level, China Minzhong says the group’s financial position remained strong, with cash position at RMB440.9 million as at 31 March 2010. Meanwhile, total assets reached RMB1,892.4 million as at 31 March 2010, as compared to RMB1,423.8 million as at 30 June 2009.