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China Star Food full-year net profit more than doubles to 33.4m yuan

CATALIST-LISTED snack maker China Star Food Group saw profit net of tax of 33.4 million yuan (S$6.7 million) for the year ended March 31, more than 2.5 times the previous year's figure of 12.5 million yuan, it said in a results release on Wednesday.

This was on the back of revenue rising 61.3 per cent to 357 million yuan from 221.3 million yuan previously. China Star said this was due to increased sales of candies and crisps.

Earnings per share was 11.26 renminbi cents, up from 4.86 renminbi cents the previous year. No dividend was declared.

China Star Food noted that in September 2018, it renewed a supply contract with an existing supplier, allowing for another five years' supply of raw sweet potato from 2,000 mu (329.5 acres) of cultivated land. The company has to date secured a raw sweet potato supply of 7,600 mu and might continue to acquire new plantations, it added.

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China Star Food said it "remains optimistic about the business outlook for the sweet potato snack food industry in China despite increased competition". It said it continues to develop product varieties, expand production capacity and expand sales channels.

The counter's shares closed unchanged at two Singapore cents on Wednesday before the results release.