Mainboard-listed Yamada Green Resources, the supplier of self-cultivated shiitake mushrooms in China, says profit after tax increased 54.8% to RMB62.6 million ($12.2 million) in the nine months ended 30 September 2009 (9M2009) to RMB198.6 million in 9M2010 from RMB40.5 million in 9M2009. Revenue increased by 43.6% from RMB138.3 million ($27 million).

The revenue increase was mainly attributable to the 55% increase in Yamada’s self- cultivated mushrooms from 62.2 million in 9M2009 to RMB96.4 million in 9M2010. This was because Yamada operated an aggregate of 2,213 mu of cultivation bases for self-cultivated shiitake mushrooms in 9M2010 compared to 1,660 mu in 9M2009. The average selling price of fresh self-cultivated shiitake mushrooms was also higher at RMB6.5/kg for the period under review, representing an 8.3% or RMB0.5/kg increase compared to 9M2009.

Sales of processed food products increased by 34.3% to RMB102.2 million in 9M2010, from RMB76.1 million in 9M2009. The revenue increase from processed food products was mainly due to increased export sales of dried shiitake mushrooms, water-boiled bamboo shoots products and other dried/water-boiled vegetable products resulting from the improved sentiments of its Japanese customers towards China’s food products. Corresponding with rising demand in China, domestic sales especially for konjac instant noodles and other processed food products also improved.

For 9M2010, gross profit rose 54.9% to RM83.6 million from RM54.0 million in the previous corresponding period. Gross profit margin improved from 39.0% in 9M2009 to 42.1% in 9M2010. This was mainly due to the increased revenue contribution from self-cultivated shiitake mushrooms, which generally commanded higher gross profit margin compared to processed food products. The revenue contribution from self- cultivated shiitake mushrooms as a proportion of total revenue increased from 44.9% in 9M2009 to 48.6% in 9M2010 with 2,213 mu of shiitake mushroom cultivation bases in operation during the period compared to 1,660 mu for 9M2009.

Yamada also received other operating income of RMB1.0 million in 9M2010 mainly from government grants and subsidies, which contributed to an overall increase of 215.5% to RMB1.5 million, from RMB0.5 million in 9M2009.