China's Yuhe doubles profits on-year for second quarter

China's No.2 day-old broiler breeder company Yuhe International, Inc reported record revenue of US$5.6 million for the second quarter, with net income of US$1.2 million.

Revenue was an 83.2 percent increase from the same quarter last year while net income increased 151.1 percent.

The strong performance was attribtued to increased productivity from parent breeders, according to Yuhe CEO Gao Zhentao.

Gao said despite higher expenses due to rising feed costs, the company was able to maintain relatively stable margins due to increased efficiency.

To capitalise on the rapidly expanding Chinese market for poultry, the company is in the midst of enlarging its mature breeder stock and continuing to expand facilities, he said.

The company recently completed construction of two new parent breeder farms, with an additional two farms on track to be completed by the end of 2008. These expansions would increase its breeder population by 500,000 birds and help Yuhe to soon become the top producer of day-old-broiler chicks in China, he said. 

The company expects to continue growing revenue from its day-old broiler sales to US$28.4 million in 2008.