China-based meat processor Zhongpin Inc. has reported a 109.2-percent increase in gross profits to US$17.1 million in the second quarter of 2008.

Revenues increased by 116 percent to a record US$137.5 million from US$63.7 million in the second quarter of 2007. The significant rise in revenue was due to increases in price and sales of the company's pork and pork products. During the second quarter of 2008, the volume of pork products sold surged 47.7 percent on-year.

Zhongpin's retail channels represented 40.5 percent of net sales and its retail revenue rose 86.9 percent on-year to US$55.7 million. During the quarter, Zhongpin added 14 new retail outlets, bringing the total number of stores to 2,960.

Exports declined 66.3 percent to US$1.4 million from US$4.1 million in the second quarter of 2007. The fall in shipments was due to the company deciding to cut efforts on export sales in favour of higher gross margin sales in the domestic market.

Gross margin was 12.4 percent, down 0.4 percent on-year. The slight decrease was mainly due to rising prices of raw materials, which was partially offset by increased market prices for pork products.

Zhongpin's net income for the second quarter reached US$8.5 million, up from US$4.2 million in the same period of 2007. The company has also completed the construction of its new facility in Luoyang City, which would add 70,000 tonnes of chilled and frozen pork production capacity per year.

Zhongpin is a meat and food processing company that specialises in pork and pork products, and fruits and vegetables, in China. Its distribution network in China spans more than 24 provinces and its export markets include the EU, Eastern Europe, Russia, Hong Kong, Japan and South Korea.