Mainboard-listed Sino Grandness Food Industry Group, the Shenzhen based integrated manufacturer of canned fruits and vegetables today, announced for the first six months ended 30 June 2010 (1H2010), net profit attributable to shareholders jumped 85.8% to RMB40.9 million ($8.2 million) from RMB22.0 million in the same period last year (1H2009).

Earnings per share in 1H2010 was 16.6 RMB cents while net asset value per share as at 30 June 2010 was 126.2 RMB cents.

In 1H2010, group revenue surged 102.4% to RMB243.8 million from RMB120.5 million in 1H2009. The strong growth in revenue was attributable to increased orders for canned fruits and vegetables from existing customers in Europe, North America (namely Mexico) and new customers from Australia.

In addition, the group has successfully commercialised its newly developed beverage products such as canned herbal drink and bottled juices which contributed RMB57.2 million to group revenue in 1H2010.

In line with the strong sales growth, gross profit surged by 79.6% to RMB70.9 million in 1H2010 from RMB39.5 million in 1H2009. However, the group’s gross profit margin declined to 29.1% from 32.8%.

Sino Grandness attributes the decline in gross profit margin to lower average selling prices for canned vegetables to penetrate new markets in Australia and the US and increasing its market share in the European and North American markets.

The lower gross profit margin for canned vegetables was partially offset by the improvement in gross profit margin of its branded beverage products as a result of new orders for the higher-margin bottled juices.