July 20, 2011

 

Growing consumption boosts Chinese producers' profits

 

 

For the first half of 2011, China's Fujian Sunner Development and Shandong Minhe Animal Husbandry, recorded net profit jumps of 83.36% and 416.71%, respectively, due to a rising demand.

 

Shandong Yisheng Livestock and Poultry Breeding, another integrator, anticipated between 145% and 155% on-year growth in its net profits during that period.

 

Sales of chicken products rose 23.93%, resulting in revenues of RMB1.24 billion (US$0.19 billion), up 43.59%. Total profits grew 83.4% on-year to RMB127.37 million (US$19.73 million) while net profits hit RMB127.34 million (US$19.72 million). The company said sales prices of chicken have outpaced cost.

 

On a yearly basis, chicken prices rose 14.14% while unit costs of chicken grew only by 10.75%. The company's current capacity is only able to meet half of demand with a large number of new clients cueing up.

 

Minhe Animal reported revenues of RMB588.14 million (US$91.10 million), an increase of 43.46% on-year, while net profits hit RMB85.36 million (US$13.22 million). During that period, their gross profit margin hit 40.46%, a rise of 43.45% on yearly basis.

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