February 19, 2010

China Swine Genetics Q2 revenues up 55%

For the second quarter ended December 31, 2009, China Swine Genetics (CSWG) reported revenues of US$23 million, up 55% over the US$14.9 million for the same period in the previous fiscal year.

Net income for the second quarter of fiscal 2010 reached US$4.2 million, an increase of 149% over the net income of US$1.7 million for the comparable quarter in fiscal 2009.

For the six months ended December 31, 2009, revenue reached US$44.9 million, an increase of 70% over the first six months of fiscal 2009. For the six months ended December 31, 2009, net income reached US$7.8 million, up 141% over the first six months of fiscal 2009.

CSWG also reported substantial improvement in gross margins. During the quarter ended December 31, 2009, gross margins were 23%, which compares favourably to the year earlier quarter when gross margins were 16%. For the six months ended December 31, 2009, gross margins were 22%, as compared to 18% for the six months ended December 31, 2008. The improvement in gross margins can be attributed primarily to a reduction in the cost of fodder.

China Swine Genetics, Inc., through its wholly-owned subsidiaries and joint venture partner, is engaged in the business of breeding and raising hogs and piglets, then distributing them to slaughter facilities and pork distributors in China.