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
"Infoblox does DNS, DHCP and IP address management for not only enterprise networks but cloud networks as well. Customers are looking for a single platform that can extend not only in their private enterprise environment but private cloud, public cloud, tracking all the IP space and everything that is going on in that environment," explained Steve Salo, Principal Systems Engineer at Infoblox, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventio...
"Cloud Academy is an enterprise training platform for the cloud, specifically public clouds. We offer guided learning experiences on AWS, Azure, Google Cloud and all the surrounding methodologies and technologies that you need to know and your teams need to know in order to leverage the full benefits of the cloud," explained Alex Brower, VP of Marketing at Cloud Academy, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clar...
In his session at 21st Cloud Expo, Carl J. Levine, Senior Technical Evangelist for NS1, will objectively discuss how DNS is used to solve Digital Transformation challenges in large SaaS applications, CDNs, AdTech platforms, and other demanding use cases. Carl J. Levine is the Senior Technical Evangelist for NS1. A veteran of the Internet Infrastructure space, he has over a decade of experience with startups, networking protocols and Internet infrastructure, combined with the unique ability to it...
The question before companies today is not whether to become intelligent, it’s a question of how and how fast. The key is to adopt and deploy an intelligent application strategy while simultaneously preparing to scale that intelligence. In her session at 21st Cloud Expo, Sangeeta Chakraborty, Chief Customer Officer at Ayasdi, provided a tactical framework to become a truly intelligent enterprise, including how to identify the right applications for AI, how to build a Center of Excellence to oper...
"IBM is really all in on blockchain. We take a look at sort of the history of blockchain ledger technologies. It started out with bitcoin, Ethereum, and IBM evaluated these particular blockchain technologies and found they were anonymous and permissionless and that many companies were looking for permissioned blockchain," stated René Bostic, Technical VP of the IBM Cloud Unit in North America, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventi...
Gemini is Yahoo’s native and search advertising platform. To ensure the quality of a complex distributed system that spans multiple products and components and across various desktop websites and mobile app and web experiences – both Yahoo owned and operated and third-party syndication (supply), with complex interaction with more than a billion users and numerous advertisers globally (demand) – it becomes imperative to automate a set of end-to-end tests 24x7 to detect bugs and regression. In th...
In his session at 21st Cloud Expo, James Henry, Co-CEO/CTO of Calgary Scientific Inc., introduced you to the challenges, solutions and benefits of training AI systems to solve visual problems with an emphasis on improving AIs with continuous training in the field. He explored applications in several industries and discussed technologies that allow the deployment of advanced visualization solutions to the cloud.
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
Agile has finally jumped the technology shark, expanding outside the software world. Enterprises are now increasingly adopting Agile practices across their organizations in order to successfully navigate the disruptive waters that threaten to drown them. In our quest for establishing change as a core competency in our organizations, this business-centric notion of Agile is an essential component of Agile Digital Transformation. In the years since the publication of the Agile Manifesto, the conn...
"MobiDev is a software development company and we do complex, custom software development for everybody from entrepreneurs to large enterprises," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Large industrial manufacturing organizations are adopting the agile principles of cloud software companies. The industrial manufacturing development process has not scaled over time. Now that design CAD teams are geographically distributed, centralizing their work is key. With large multi-gigabyte projects, outdated tools have stifled industrial team agility, time-to-market milestones, and impacted P&L stakeholders.
"ZeroStack is a startup in Silicon Valley. We're solving a very interesting problem around bringing public cloud convenience with private cloud control for enterprises and mid-size companies," explained Kamesh Pemmaraju, VP of Product Management at ZeroStack, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Enterprises are adopting Kubernetes to accelerate the development and the delivery of cloud-native applications. However, sharing a Kubernetes cluster between members of the same team can be challenging. And, sharing clusters across multiple teams is even harder. Kubernetes offers several constructs to help implement segmentation and isolation. However, these primitives can be complex to understand and apply. As a result, it’s becoming common for enterprises to end up with several clusters. Thi...
"Space Monkey by Vivent Smart Home is a product that is a distributed cloud-based edge storage network. Vivent Smart Home, our parent company, is a smart home provider that places a lot of hard drives across homes in North America," explained JT Olds, Director of Engineering, and Brandon Crowfeather, Product Manager, at Vivint Smart Home, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"Akvelon is a software development company and we also provide consultancy services to folks who are looking to scale or accelerate their engineering roadmaps," explained Jeremiah Mothersell, Marketing Manager at Akvelon, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.