Mainboard-listed China Flexible Packaging Holdings, the manufacturer of Biaxially Oriented Polypropylene (BOPP) film, says it posted a 76.4% increase in net profit to RMB 40.4 million ($8 million) for the nine months ended 31 July 2010 with higher sales and gross profit compared to RMB 22.9 million in 2009.

Turnover increased by 40.9% or RMB 215.2 million from RMB526.2 million for the nine months ended July 2009 to RMB 741.4 million due to increased production capacities and resulting boost in sales due to the group’s new production line.

In particular, China Flexible Packaging says its high shrinkage film segment registered strong growth of 103% due to its strong presence in the expanding food and beverage industries.

Higher demand for higher margin products and reduction in fixed costs per unit due to higher production volumes meant the group enjoyed a 32.9% growth in gross profit to RMB110.5 million for the nine months ended 31 July 2010 from RMB 83.13 million in the corresponding period in 2010.

China Flexible Packaging says it maintains a healthy balance sheet with no borrowings. As at 31 July 2010, cash and cash equivalents were RMB133.2 million.