Anhui Taiyang Poultry Reports Profits Rise

CHINA - Anhui Taiyang Poultry Co, a vertically integrated duck breeder, processor and distributor, saw gross profit for the first nine months of 2011 rise by 5.5 per cent to $6.5 million and gross margin improved to 27.9 per cent compared to 20 per cent a year ago.
calendar icon 30 November 2011
clock icon 3 minute read

Revenue for the nine months to the end of September totalled $23.2 million.

The Company recognised non-cash bad debt reserves in the third quarter of 2011 totalling $1.2 million relating to accounts receivable, loans receivable, supplier prepayments and sale price receivable from the 2010 sale of the company's fertiliser plant.

Net income was $1.7 million or $0.17 per basic and diluted share, based on 10.3 million weighted average shares.

Adjusted net income (non-GAAP) exclusive of derivative charges, one-time gains, and bad debt reserves totalled $2.5 million compared to $2.6 million in 2010.

Mr Wu Qiyou, Chief Executive Officer and Chairman of the Board of Directors, said: "We are pleased with our financial results for the first nine months of 2011 as they have provided a positive trend related to our gross margin improvement.

"During the nine month period, we experienced a 57.3 per cent increase in revenue of our higher margin Breeding Unit to $12.2 million from $7.7 million in the comparable period in 2010.

"This portion of our business accounted for 52.4 per cent of total revenue during the 2011 period as compared to 25.1 per cent in 2010.

"Thus far in 2011, the average price for ducklings in China has improved to $0.86 as compared to $0.60 over the same period in 2010.

"We foresee market pricing to stabilise in the near term and remain at a financially beneficial level for us to continue operating as we have for the past few quarters of streamlining higher revenue from our Breeding Unit.

"Our third quarter and year to date results in 2011 include non-cash bad debt reserve charges of $1.2 million charged against certain accounts receivable, loans receivable, supplier prepayments, and sale price receivable from the 2010 sale of our fertilizer plant, which contributed to last year's revenue and net income results.

"We are pleased to report that we have increased our shareholder's equity from $2.52 per share to $2.70 per share, despite the material reserves taken in the third quarter of 2011."

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