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Q2 Continues Good Trend, Says Zhongpin CEO

by 5m Editor
10 August 2010, at 10:18am

CHINA - Zhongpin reports higher revenue and net income for the second quarter of 2010.

Zhongpin Inc., a leading meat and food processing company in the People's Republic of China, reports higher revenues and net income for the second quarter 2010 from the second quarter 2009.

Net sales revenues increased 33 per cent in the three months ended 30 June 2010 to US$215.1 million from $161.8 million in the second quarter 2009, while net income increased 16 per cent to $12.4 million in the second quarter 2010 from $10.7 million in the second quarter 2009.

Basic earnings per share were unchanged at $0.36 per share for both second quarters on 17 per cent higher basic weighted average shares outstanding. Diluted earnings per share decreased three per cent to $0.35 in the second quarter 2010 from $0.36 in the second quarter 2009 on higher diluted weighted average shares outstanding.

Hog and pork prices in the second quarter 2010 decreased about 10 per cent from the second quarter 2009, primarily because the supply of hogs was higher than the market demand. Hog and pork prices appear to have reached a low-point in mid-June, since prices have rebounded about 15 to 20 per cent higher between mid-June and early August. Zhongpin expects prices to continue to increase gradually during the remainder of 2010.

Xianfu Zhu, Chairman and Chief Executive Officer of Zhongpin Inc., said: "Our second quarter continues our good long-term trend of higher sales and net income. The consistency of our operating and financial performance comes from our established strategy, business model, and effective execution.

"Our primary goal is to become a major national pork producer in China and, at the same time, to increase value for our shareholders."