October 13, 2010

Sen Yu International posts huge profit growth

Sen Yu International Holdings Inc, China's leading producer and distributor of breeding and commercial hogs, announced a 38.74% jump in net income to US$6.26 million for its fiscal year ended June 30, 2010.

Net revenue rose 39.61% to US$70.35 million from the same period ended last year.

Increased revenues resulted from more orders from its major customers, Beijing Dahongmen and Beijing Fifth Meat Factory. Hog sales increased to 397,255 head for the fiscal year from 294,226 in 2009. Net income increased mainly due to the higher revenues and continuing control over expenses.

"Our strong increases in revenues and net income for the fiscal year ended June 30, 2010, reflect the high pork consumption in the Chinese market due to China's economic expansion," said Zhenyu Shang, founder and chief executive officer.

Revenues from commercial hogs were up US$20.82 million or 44% to US$68.33 million on-year. Revenues from other hogs decreased from US$2.89 million or 30% to US$2.02 million. The increase in the commercial-hog product line was primarily attributable to the company's policy of committing all of its available cash resources to the commercial hogs market.

"China's economic outlook continues to be encouraging, and China's projected domestic pork consumption will approach 68 million tonnes in 2015," Shang said.

Government support and trade protection policies also encourage domestic pig production including tax exemptions, vaccines technology, feed costs cap, price control and providing use of lands.

"China consumes about 50% of the world's pork products. We believe that the high demand for hogs should continue for several years," Shang added.