China Flexible Packaging's Q2 profit rises 89%

SINGAPORE : Mainboard-listed film manufacturer China Flexible Packaging Holdings said its second quarter net profit jumped 89 per cent on-year to 13.8 million yuan, or S$2.8 million.

The company said the better results were due to the increase in sales and gross profit margin for the period under review.

China Flexible Packaging saw its revenue rise 41 per cent to 235 million yuan, driven by increased market demand for its products.

The company also said the positive results were due to the recovery of the food and beverage industry and consumer spending in China.

Meanwhile, the company's net profit for the first half of its financial year nearly tripled, rising 195 per cent, to 38.6 million yuan on higher sales volume.



The company said it expects to seek more business opportunities, given that the continued growth of the Chinese economy may improve demand for packaging material products.

The company added that both its production lines, which started in September 2009, and a new one to be launched in the second half of this financial year, are expected to contribute positively to earnings for the year.