Zhongpin reports double revenue in Q3
Zhongpin Inc, one of the leading meat and food processing enterprises in China, reported sound financial results for the third quarter of 2007, mainly attributed to expansion in production capacity and increase of market penetration.
For the period, its revenues more than doubled year-on-year, hitting US$71.3 million. Gross profit surged 87.6% to US$ 9.7 million, coupled with its net income at US$5.9 million, or US$ 0.25 per fully diluted share, up 122.8% after eliminating the effect of penalty expenses over the corresponding period of last year.
Zhongpin’s businesses specialize in pork and pork products, as well as fruits and vegetables. Thanks to the recent pork price hike in China, the company experienced strong revenue growth in the third quarter. It was reported that its volume of pork sold increased by 57.3% since the average selling price up 41.0% from the corresponding period of 2006. Chilled pork and frozen pork accounted for 51.9% and 34.7% of total revenue respectively.
The company’s distribution network covers more than 20 provinces in China and overseas markets such as the European Union, Japan, South Korea, and Russia, through over 2,900 retail outlets. In the following years, Zhongpin plans to continue expanding its pork production capacity through acquisitions and establishing new facilities in China.
Tags: food, pork