Guidance for the Year 2010 from Zhongpin

CHINA - Zhongpin Inc., a leading meat and food processing company in the People's Republic of China has published guidance for the year ending 31 December 2010.
calendar icon 13 January 2010
clock icon 3 minute read

Warren Wang, Zhongpin's Chief Financial Officer, said: "For the year 2010, Zhongpin's sales revenues are currently expected to be within a range of $900 million to $940 million, with gross profit within the range of $106 million to $115 million and net income within the range of $52 million to $57 million. The resulting diluted earnings per share for the year 2010 is currently expected to be within the range of $1.49 to $1.64 per share."

This guidance is based on the following assumptions and strategies:

  • Continuation of China's policies designed to stimulate domestic consumption and economic growth
  • Higher average pork prices in China's pork industry in 2010 than in 2009
  • Higher sales volume of our pork products, led by chilled pork products, followed by prepared pork products and frozen pork products
  • A higher percentage of sales from our higher-margin chilled pork and prepared pork products
  • Average capacity utilisation of about 75 per cent for pork products
  • Increasing distribution efficiencies from expansion of our cold-chain logistics system and service areas
  • Growing awareness of the Zhongpin brand in regional markets and emerging brand awareness across China, and
  • Continuation of the Chinese government's support and subsidies for producers of agricultural products, such as Zhongpin.

Zhongpin believes that China's food processing industry will continue to consolidate, which may result in higher market shares for its main competitors. However, the company believes it is equipped to meet the challenge of increasing competition and that its guidance for 2010 can be achieved.

Zhongpin Inc. is a meat and food processing company that specializes in pork and pork products, vegetables, and fruits in China. Its distribution network in China covers 20 provinces plus Beijing, Shanghai, Tianjin, and Chongqing and includes more than 3,000 retail outlets. Zhongpin's export markets include the European Union and Southeast Asia.

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