Good First-Half for Anhui Taiyang

CHINA - Anhui Taiyang Poultry reports gross profit and gross margin substantially higher in the first half-year of 2011 than the same period last year.

18 August 2011

3 minute read

Asia

Anhui Taiyang Poultry Co., Inc., a vertically integrated duck breeder, processor and distributor, has announced the financial results for the three and six months ended 30 June 2011.

Among the financial highlights for the first half, revenue totalled US$16.1 million, driven by a 140.8 per cent increase in higher margin for the breeding unit. Gross profit rose 34.2 per cent to $4.6 million, while gross margin improved to 28.6 per cent from 17.4 per cent a year ago. Operating profit was up 31.8 per cent to $2.7 million, and net income totalled $2.1 million or $0.20 per basic and diluted share based on 10.2 million shares. Adjusted net income (non-GAAP) exclusive of derivative charges and one-time gains totalled $1.6 million, a 36.8 per cent increase compared with $1.2 million in 2010.

Wu Qiyou, Chief Executive Officer and Chairman of the Board of Directors, stated: "In similar fashion to the first quarter of 2011, the price of ducklings remained relatively high during the second quarter of 2011. We therefore found it financially beneficial to continue to focus our sales effort on our Breeding Unit, which resulted in higher gross margins but contributed lower overall revenue growth. Through our three vertically integrated units, we have the luxury of evaluating market pricing trends and adjusting our business strategy according to the vertical that provides the greatest profit possible for our shareholders.

"During the first half of 2011 the Company's financial results were dramatically affected by one-time non-cash charges of $436,000 for derivative expense. We also realised two large one-time gains in the first half of 2010 totalling $1.8 million that distort the period-to-period comparative results.

"Although these transactions altered our bottom line, we are encouraged by the substantial gross profit and operating profit increases, as well as margin expansion, realised through the first half of 2011 versus the same period last year," said Mr Wu.