May 16, 2008

China's HQ Sustainable profits surge by 17 percent

China's HQ Sustainable Maritime Industries saw sales reach US$9.2 million in the first quarter of the year, up 17.3 percent on-year.

The company's gross profit soared by more than 50 percent at US$3.9 million while gross profit margin increased 42.3 percent, up from 33 percent in the first quarter of 2007.

Improvement in the gross profit margin was attributed to higher selling prices for tilapia products and increased sales volume.

Gross profit margin for the HQ Maritime's marine bio segment was 76 percent for the three months ended March 31, 2008, compared to 82 percent in the first quarter of 2007.

The decrease was due to a different sales mix of lower margin products, the company said.

HQ Sustainable Maritime saw EBITDA at US$1.1 million, up from US$62,207 in the first quarter of 2007.

The company had significant foreign currency gains of US$2.8 million in the first quarter of 2008, compared to foreign currency gains of US$275,580 in the first quarter of 2007.