February 8, 2013

In the first quarter of the fiscal year ending September 28, 2013, Pacific Andes International Holdings Limited announced a 42.5% jump in net profit to HKD2.4 billion (US$309.5 million).

The company noted that this good result was obtained despite a slight reduction in revenue from its subsidiary Pacific Andes Resources Development Limited (PARD).

Revenue from frozen fish supply chain management accounted for 64.6% of total revenue and climbed by 4.4% to HKD1.5 billion (US$193.4 million), mainly due to a higher sales volume.

Meanwhile, there was a drop in revenue from the fishery and fish supply division, which accounted for 35.4% of total revenue, by 14.1% to HKD843.0 million (US$108.7 million), mainly due to lower sales from its fleet from China Fishery Group Limited, a subsidiary of PARD. In fourth quarter of 2012 financial year, the volume of fish obtained from the Group's suppliers in the North Atlantic Ocean was significantly lower on-year, leading to a considerably lower inventory during this first quarter.

In contrast, the contract supply business division saw a higher sales volume of its products and revenue increased by 22.2% to US$89.7 million, and Peruvian fishmeal operations profited from higher average selling prices of fishmeal and fish oil, after the Peruvian Government announced a 68% reduction in total allowable catch (TAC), and its revenue jumped by 6.8% to US$15.1 million.

Commenting on the performance and outlook of PARD and China Fishery, Ng Joo Siang, Vice - Chairman and Managing Director of Pacific Andes said, "We are pleased that PARD Reported a healthy first quarter for fiscal year 2013 with improved profitability and the contract supply and fishmeal business of China Fishery also remained stable. However, this quarter is traditionally a low fishing season, and it was further affected by a significant reduction in the fish supplies to CF Fleet. The lower-than-expected processing volume in the North Atlantic Ocean last quarter also meant a lower level of inventory carried forward for sale in this quarter. While the reduction in total allowable catch of Peruvian Anchovy is expected to continue to impact the Group's results for the next quarter, the persistent upward trend of fishmeal and fish oil prices will help soften this impact, as it had this quarter."

Established in 1986 and listed on the Mainboard of Hong Kong Stock Exchange in 1994, Pacific Andes International Holdings Limited (1174.HK, "Pacific Andes") is a fully integrated group of companies with operations across the entire seafood value chain which includes harvesting, sourcing, ocean logistics and transportation, food safety testing, processing and distribution of frozen fish products, as well as fishmeal and fish oil.