Welcome!

News Feed Item

Putian Food Announces 2013 Annual Results

Expanding sales network to Increase Brand Influence

HONG KONG, March 28, 2014 /PRNewswire/ --

Financial Highlights

For the twelve months ended 



31 December



2013

2012

Change


 (RMB '000)

 (RMB '000)

(%)

Revenue:

626,127

580,158

+7.9

Retail of pork:

334,900

301,812

+11.0

Wholesale of pork:

291,227

278,346

+4.6

Gross profit:

161,877

149,949

+8.0

Retail of pork:

90,990

86,005

+5.8

Wholesale of pork:

70,887

63,944

+10.9

Gross profit margin

25.9%

25.8%

+0.1 ppt 

Profit attributable to owners of the Company

106,423

105,105

+1.3

Basic earnings per share(RMB)

13.30

15.04

-11.6

China Putian Food Holding Limited ("Putian Food" or the "Company", stock code: 01699.HK), a leading vertically-integrated pork supplier in China, is pleased to announce the audited consolidated results of the Company and its subsidiaries (collectively known as the "Group") for the year ended 31 December 2013 (the "Period").

During the Period, the Group's overall business performed well, with its revenue and profit achieving growth. Revenue of the Group was approximately RMB626 million, up 7.9% year-on-year. Net profit grew 1.3% year-on-year to approximately RMB106 million. The Group's revenue from retail of pork increased 11.0% to approximately RMB335 million, accounting for 53.5% of the total revenue. Revenue from wholesale of pork improved 4.6% to approximately RMB291 million, accounting for 46.5% of the total revenue. The steady growth of the Group's revenue was mainly attributable to the expansion of its points-of-sales to 100 in China, representing an increase of 14 points-of-sales as compared to 2012.

During the Period, the overall gross profit of the Group increased from approximately RMB150 million in 2012 to approximately RMB162 million in 2013. The Group adopted a vertically-integrated business model and strictly monitored hog farming, slaughtering and sales for effective cost control. Leveraging the Putian brand and its mid-to-high end market positioning, its pork products were able to stand against the slight volatility in pork market prices during the Period. With a view to gain market share while achieving a balanced gross profit margin, the Group's pricing varies among markets and according to different consumption habits. The overall gross profit margin of the Group remained stable to approximately 25.9% as compared to 2012.

Mr. Cai Chenyang, Chairman and Chief Executive Officer of the Group, said, "The global economic recovery remained sluggish, which hindered China's economic development. However, China still managed to maintain its GDP growth at 7.7%. The growing disposable income will boost consumers' demand for high-quality food. The Group achieved organic growth in the high-end pork products market in Fujian province, in which we maintained a leading position. The Group seized opportunities of China's economic growth; whilst developing pork retail business and gradually expanding its sales network to increase the revenue share of the pork retail business. Meanwhile, the Group also stepped up efforts in exploring customers from large-scale group-buying channels to create a stable income source."

The Group conducts its business with a vision of creating gratifying life for the general public and its corporate mission of "offering high-quality pork products" in mind. Pork products marketed under the "Putian" brand have been increasingly well received and well recognized by consumers; thus, the sales performance of the Group has been substantially enhanced. The Group steadily expanded its sales network to drive revenue growth. The number of points-of-sales increased from 86 as at the end of 2012 to 100 as at the end of 2013. Among these points-of-sales, there were 73 supermarket retail counters across the coastal regions in eastern Fujian Province, and 27 direct sales retail outlets which are mainly located in Putian and Fuzhou.

By implementing a stringent epidemic prevention system in the hog farms and safety control measures in every production stage, the Group continues to maintain health and safety in its farms to ensure the availability of nutritious and healthy pork products to consumers. During the Period, Separating lines of the Group's slaughterhouse have undergone a comprehensive upgrade and commenced operation since November 2013, thereby enhancing the production capability and hygiene monitoring of the slaughterhouse. In order to enhance its hog breeding and farming capacity, the Group will use the net proceeds raised from the listing in Hong Kong to build 6 additional hog farms as planned.

Since the commencement of operation of the Group's slaughterhouse in August 2009, a majority of income was generated by wholesale of pork to individual pork product traders. As of the end of 2013, the Group has entered agreement with 5 individual pork product traders for another stable source of income.

Pork product, as a necessity food in China's households, will see its consumption growing steadily in the future with the continued urbanization and rising income. The government made clear its target of "putting food safety first" and "China's food for Chinese" during the "National Conference on Rural Work" in December 2013, highlighting the importance of food safety and stable supply. In light of this, the Group addressed the market's need and set its future strategies. The Group will improve its pork product mix and expand its sales network by "chilled pork products", with a view to entering the Eastern China market. It will also prepare for the establishment of Beijing subsidiary, focusing on special high end farming and brand building for high quality pork; whilst enhancing value chain by commencing meat product deep processing project with added-value. Meanwhile, it strives to establish the top high quality pork e-commerce platform to foster the recognition and loyalty from mid-high end consumers to the "Putian" brand of pork.

Looking ahead, Mr. Cai said, "With the continued urbanization and improving living standard in China, consumers attach high importance of food safety and nutrition value. Leveraging the rising demand for high end food in China market, the Group will continue to embrace its vision of creating gratifying life for the general public and is committed to the highest standard of food safety and product quality. We are confident in our future development and believe that the sustainable business growth will generate shareholder returns."

About China Putian

China Putian Food Holding Limited is a leading vertically integrated pork products supplier in Fujian Province, China. The Group follows a vertically integrated business model with a complete coverage on the production chain comprising hog farming, hog slaughtering, and sales and distribution of pork. As at 31 December 2013, the Group had a total of 100 points of sales dispersedly located across Ningde City, Fuzhou City, Putian City, Quanzhou City and Zhangzhou City of Fujian Province. The Group upholds the corporate vision of "offering high-quality pork products" to provide customers with premium, safe and hygienic pork products.

Investor and Media Enquiries:
Karl Cheung/ Henry Chik/ Ivy Lu
PRChina Limited
Tel:   852-2522-1838/ 852-2522-1368/ 852-2522-2823
Email: [email protected] / [email protected] / [email protected]

SOURCE China Putian Food Holding Limited

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Between the mockups and specs produced by analysts, and resulting applications built by developers, there exists a gulf where projects fail, costs spiral, and applications disappoint. Methodologies like Agile attempt to address this with intensified communication, with partial success but many limitations. In his session at 18th Cloud Expo, Charles Kendrick, CTO & Chief Architect at Isomorphic Software, will present a revolutionary model enabled by new technologies. Learn how business and devel...
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
The IoT has the potential to create a renaissance of manufacturing in the US and elsewhere. In his session at 18th Cloud Expo, Florent Solt, CTO and chief architect of Netvibes, will discuss how the expected exponential increase in the amount of data that will be processed, transported, stored, and accessed means there will be a huge demand for smart technologies to deliver it. Florent Solt is the CTO and chief architect of Netvibes. Prior to joining Netvibes in 2007, he co-founded Rift Technol...
If there is anything we have learned by now, is that every business paves their own unique path for releasing software- every pipeline, implementation and practices are a bit different, and DevOps comes in all shapes and sizes. Software delivery practices are often comprised of set of several complementing (or even competing) methodologies – such as leveraging Agile, DevOps and even a mix of ITIL, to create the combination that’s most suitable for your organization and that maximize your busines...
Struggling to keep up with increasing application demand? Learn how Platform as a Service (PaaS) can streamline application development processes and make resource management easy.
New Relic, Inc. has announced a set of new features across the New Relic Software Analytics Cloud that offer IT operations teams increased visibility, and the ability to diagnose and resolve performance problems quickly. The new features further IT operations teams’ ability to leverage data and analytics, as well as drive collaboration and a common, shared understanding between teams. Software teams are under pressure to resolve performance issues quickly and improve availability, as the comple...
The proper isolation of resources is essential for multi-tenant environments. The traditional approach to isolate resources is, however, rather heavyweight. In his session at 18th Cloud Expo, Igor Drobiazko, co-founder of elastic.io, will draw upon their own experience with operating a Docker container-based infrastructure on a large scale and present a lightweight solution for resource isolation using microservices. He will also discuss the implementation of microservices in data and applicat...
See storage differently! Storage performance problems have only gotten worse and harder to solve as applications have become largely virtualized and moved to a cloud-based infrastructure. Storage performance in a virtualized environment is not just about IOPS, it is about how well that potential performance is guaranteed to individual VMs for these apps as the number of VMs keep going up real time. In his session at 18th Cloud Expo, Dhiraj Sehgal, in product and marketing at Tintri, will discu...
Join IBM June 8 at 18th Cloud Expo at the Javits Center in New York City, NY, and learn how to innovate like a startup and scale for the enterprise. You need to deliver quality applications faster and cheaper, attract and retain customers with an engaging experience across devices, and seamlessly integrate your enterprise systems. And you can't take 12 months to do it.
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, will discuss how research has demonstrated the value of Machine Learning in delivering next generation analytics to im...
This is not a small hotel event. It is also not a big vendor party where politicians and entertainers are more important than real content. This is Cloud Expo, the world's longest-running conference and exhibition focused on Cloud Computing and all that it entails. If you want serious presentations and valuable insight about Cloud Computing for three straight days, then register now for Cloud Expo.
As you respond to increasing requests for new analytics, you need fast and flexible technology in your arsenal so that you can deploy the right workload to the right platform for the need at hand. Do you need self-service and fast time to value? Do you have data and application control and privacy needs, along with strict SLAs to meet? IBM dashDB™ is data warehouse technology powered by in-memory computing and in-database analytics that are designed for fast results, scalability and more.
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, will provide tips on how to be successful in large scale machine lear...
Up until last year, enterprises that were looking into cloud services usually undertook a long-term pilot with one of the large cloud providers, running test and dev workloads in the cloud. With cloud’s transition to mainstream adoption in 2015, and with enterprises migrating more and more workloads into the cloud and in between public and private environments, the single-provider approach must be revisited. In his session at 18th Cloud Expo, Yoav Mor, multi-cloud solution evangelist at Cloudy...