May 10, 2011

Zhongpin's 2011 Q1 revenue surges 40%

Zhongpin Inc, a leading meat and food processing company in China, has posted US$285.8-million revenue for the first quarter of this year, reflecting an on-year increase of 40% from US$204.3 million.

In the reporting period, the Nasdaq-listed firm's net profit increased by 27% on-year to US$16.9 million from US$13.3 million. Basic earnings per American Depositary Share reached US$0.47 in the first quarter of 2011, up 24% on-year from US$0.38. During the period from January to March 2011, the company saw its gross margin increase to 12.6% on-year from 12.2%.

As of March 31, 2011, Zhongpin had a total annual capacity of 703,760 tonnes, consisting of 563,760 tonnes of chilled and frozen pork, 90,000 tonnes of prepared pork products, 20,000 tonnes of pork oil and 30,000 tonnes of vegetables and fruits.

CFO Warren Wang said that the company expects the average pork prices in China will increase by 5% to 10% in 2011 from those of last year, partly boosted by tight supply of live hogs and higher cost of raising hogs.