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
With the Apple Watch making its way onto wrists all over the world, it’s only a matter of time before it becomes a staple in the workplace. In fact, Forrester reported that 68 percent of technology and business decision-makers characterize wearables as a top priority for 2015. Recognizing their business value early on, FinancialForce.com was the first to bring ERP to wearables, helping streamline communication across front and back office functions. In his session at @ThingsExpo, Kevin Roberts...
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
It's easy to assume that your app will run on a fast and reliable network. The reality for your app's users, though, is often a slow, unreliable network with spotty coverage. What happens when the network doesn't work, or when the device is in airplane mode? You get unhappy, frustrated users. An offline-first app is an app that works, without error, when there is no network connection.
Data-as-a-Service is the complete package for the transformation of raw data into meaningful data assets and the delivery of those data assets. In her session at 18th Cloud Expo, Lakshmi Randall, an industry expert, analyst and strategist, will address: What is DaaS (Data-as-a-Service)? Challenges addressed by DaaS Vendors that are enabling DaaS Architecture options for DaaS
One of the bewildering things about DevOps is integrating the massive toolchain including the dozens of new tools that seem to crop up every year. Part of DevOps is Continuous Delivery and having a complex toolchain can add additional integration and setup to your developer environment. In his session at @DevOpsSummit at 18th Cloud Expo, Miko Matsumura, Chief Marketing Officer of Gradle Inc., will discuss which tools to use in a developer stack, how to provision the toolchain to minimize onboa...
As someone who has been dedicated to automation and Application Release Automation (ARA) technology for almost six years now, one of the most common questions I get asked regards Platform-as-a-Service (PaaS). Specifically, people want to know whether release automation is still needed when a PaaS is in place, and why. Isn't that what a PaaS provides? A solution to the deployment and runtime challenges of an application? Why would anyone using a PaaS then need an automation engine with workflow ...
SYS-CON Events announced today that Catchpoint Systems, Inc., a provider of innovative web and infrastructure monitoring solutions, has been named “Silver Sponsor” of SYS-CON's DevOps Summit at 18th Cloud Expo New York, which will take place June 7-9, 2016, at the Javits Center in New York City, NY. Catchpoint is a leading Digital Performance Analytics company that provides unparalleled insight into customer-critical services to help consistently deliver an amazing customer experience. Designed...
The cloud competition for database hosts is fierce. How do you evaluate a cloud provider for your database platform? In his session at 18th Cloud Expo, Chris Presley, a Solutions Architect at Pythian, will give users a checklist of considerations when choosing a provider. Chris Presley is a Solutions Architect at Pythian. He loves order – making him a premier Microsoft SQL Server expert. Not only has he programmed and administered SQL Server, but he has also shared his expertise and passion w...
With the proliferation of both SQL and NoSQL databases, organizations can now target specific fit-for-purpose database tools for their different application needs regarding scalability, ease of use, ACID support, etc. Platform as a Service offerings make this even easier now, enabling developers to roll out their own database infrastructure in minutes with minimal management overhead. However, this same amount of flexibility also comes with the challenges of picking the right tool, on the right ...
SYS-CON Events announced today that FalconStor Software® Inc., a 15-year innovator of software-defined storage solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. FalconStor Software®, Inc. (NASDAQ: FALC) is a leading software-defined storage company offering a converged, hardware-agnostic, software-defined storage and data services platform. Its flagship solution FreeStor®, utilizes a horizonta...
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 ad...
SYS-CON Events announced today that (ISC)²® (“ISC-squared”) will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Two leading non-profits focused on cloud and information security, (ISC)² and Cloud Security Alliance (CSA), developed the Certified Cloud Security Professional (CCSP) certification to address the increased demand for cloud security expertise due to rapid growth in cloud. Recently named “The Next...
The Art of DevOps provides a fun overview to help teams understand DevOps. Written in the style of the famous 6th century Chinese manuscript “The Art of War,” this eBook describes DevOps in the form of a mission to continuously deliver assets to the operational battlegrounds safely, securely, and quickly. It’s a fun read with valuable insights.
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
Join us at Cloud Expo | @ThingsExpo 2016 – June 7-9 at the Javits Center in New York City and November 1-3 at the Santa Clara Convention Center in Santa Clara, CA – and deliver your unique message in a way that is striking and unforgettable by taking advantage of SYS-CON's unmatched high-impact, result-driven event / media packages.