Sen Yu International Holdings, Inc. Reports Fiscal 2011 Year End Results
Record Revenue and Profit Driven by Increased Orders for Commercial Hogs From Major Customers and Rising Pork Prices
(firmenpresse) - JIAMUSI CITY, CHINA -- (Marketwire) -- 09/29/11 -- Sen Yu International Holdings, Inc. ("Sen Yu International" or the "Company") (OTCBB: CSWG), a leading commercial hog breeder and supplier in Heilongjiang Province, the People's Republic of China, today announced its financial results for its fiscal year ended June 30, 2011.
Total revenue increased 41.8% to a record $99.8 million from $70.4 million
Gross profit increased 84.6% year-over-year to $25.9 million from $14.0 million
Gross margin increased to 26.0% from 20.0% on increased sales and strong increases in the average market price for hogs
Operating expenses were $6.9 million, down 12.2% from $7.9 million in fiscal 2010
Operating income rose 207.4% to $19.0 million from $6.2 million in fiscal 2010
Adjusted net income, which excludes a gain in the fair value of warrants, increased 202.2% to $18.9 million, or $0.73 per diluted share, versus $6.3 million, or $0.41 per diluted share, for the same period last year, which excludes a non-cash expense related to the fair value of warrants for the fiscal year 2010
Net income increased to $36.1 million, or $1.40 per diluted share, from $4.3 million, or $0.29 per diluted share, for the fiscal year ended June 30, 2010
Working capital increased 189.6% to $59.2 million at June 30, 2011, from $20.5 million at June 30, 2010
Shareholders' equity inclusive of noncontrolling interest increased 166.5% to $59.8 million at June 30, 2011, from $22.5 million at June 30, 2010
"We experienced record revenues and profits in fiscal 2011 based on strong demand for our high quality breeding and commercial hogs," stated Mr. Zhenyu (Jack) Shang, Founder, Chairman and CEO of Sen Yu International Holdings, Inc. "Increased orders from our two major customers, Beijing Dahongmen and Beijing Fifth Meat Factory, resulted in revenues increasing to $99.8 million for the year compared to $70.4 million in revenue for fiscal 2010. Overall, our hog sales increased by 106,773 head to 504,028 head in fiscal 2011, compared to 397,255 at the end of fiscal 2010. We achieved higher margins in fiscal 2011 due to strong increases in average market prices for commercial hogs that led to higher unit sales prices. We believe our efficient business model and advanced breeding techniques, coupled with the demand we see for our products, will help us to continue to capture market share and drive our future growth."
Revenue for the fiscal year ended June 30, 2011 increased 41.8% to a record $99.8 million compared to $70.4 million for the fiscal year ended June 30, 2010. The increase in revenues resulted from increased orders from the Company's major customers, Beijing Dahongmen and Beijing Fifth Meat Factory. Hog sales increased to 504,028 head for the fiscal year ended June 30, 2011 from 397,255 for the fiscal year ended June 30, 2010. The increase in average unit sales price per capita was due to the increase in the market price during the fiscal year ended June 30, 2011.
Cost of goods sold for the fiscal year ended June 30, 2011 increased by $17.5 million, or 31.1%, to $73.8 million from $56.3 million for the fiscal year ended June 30, 2010. The increase was primarily attributable to increased sales volume.
Gross profit for the fiscal year ended June 30, 2011, increased by $11.9 million, or 84.6% to $25.9 million from $14.0 million for the fiscal year ended June 30, 2010. The increase was primarily due to the increase in sales volume. Gross margin for the fiscal year ended June 30, 2011 increased to 26.0% from 20.0% for the fiscal year ended June 30, 2010. The increase in gross margin was due to more commercial hogs and breeding swine sold and the higher unit sale prices for the fiscal year ended June 30, 2011, which generated higher unit margins for the period ended June 30, 2011.
Operating expenses for the fiscal year ended June 30, 2011 decreased $959,419, or 12.2%, to $6.9 million from $7.9 million for the fiscal year ended June 30, 2010. The decrease was primarily attributable to a decrease in compensation expenses. Compensation expenses decreased by approximately $3.1 million, or 76.1%, from the fiscal year ended June 30, 2010, principally due to reduction of payment in fiscal 2011.
Operating income for the fiscal year ended June 30, 2011 increased by $12.8 million, or 207.4%, to $19.0 million from $6.2 million for the fiscal year ended June 30, 2010. The increase was primarily due to an increase in sales.
Net income for the year ended June 30, 2011 was $36.1 million, or $1.40 per diluted share, which includes a gain of $17.2 million related to the change in the fair value of warrants, compared to $4.3 million, or $0.29 per diluted share for the year ended June 30, 2011, which includes a non-cash expense of $2.0 million related to the fair value of warrants. Excluding these items, adjusted net income for the year ended June 30, 2011 was $18.9 million, or $0.73 per diluted share, which translates into a 202.2% increase in net income for the fiscal year ended June 30, 2011.
As of June 30, 2011, the Company had $11.4 million in cash and cash equivalents, an increase of 96.4% from $5.8 million as of June 30, 2010, and $59.2 million in working capital, an increase of 189.6% from working capital of $20.5 million at June 30, 2010. Shareholders' equity inclusive of noncontrolling interest at June 30, 2011 was approximately $59.8 million, an increase of 166.5% from $22.5 million at June 30, 2010. The Company generated $892,435 in net cash flow from operating activities for the fiscal year ended June 30, 2011, versus $1.3 million in net cash flow for the fiscal year ended June 30, 2010.
"We see significant growth for our industry going forward and believe that strong demand from Chinese consumers for high quality pork coupled with rising domestic incomes and economic expansion will stimulate even greater demand for our high quality breeding hogs," commented Mr. Shang. "The market for breeding and commercial hogs is becoming very attractive to foreign investors as China is the world's largest consumer of pork and produces some 50 million tons of pork every year to feed a population of over 1.3 billion. We continue to expand our production and refine our breeding techniques to meet the rising demand from China's middle class. Going forward, we believe pork consumption and production will continue to rise and that Sen Yu is well positioned to capture greater revenue and profit."
Sen Yu International Holdings, Inc. (OTCBB: CSWG), through its subsidiaries, is the largest commercial hog breeder and supplier in Heilongjiang Province, the People's Republic of China (PRC). Founded in 2004 and based in Jiamusi City, the Company owns and operates two farms in Heilongjiang Province with an aggregate annual capacity of over 11,000 breeding hogs. For the fiscal year ended June 30 2011, the Company sold approximately 500,000 commercial hogs in the Beijing market. The Company also conducts genetic and breeding research to improve pork production capabilities.
To be added to the Company's email distribution for future news releases, please send your request to .
Certain statements in this release concerning our future growth prospects are "forward-looking statements," which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. Such statements may include, without limitation, statements with respect to the Company's plans, objectives, projections, beliefs, expectations and intentions and other statements identified by words such as "guidance," "projects," "may," "could," "would," "should," "believe," "expect," "anticipate," "estimate," "intend," "plan," or similar expressions. These statements are based upon the current beliefs and expectations of the Company's management and are subject to significant risks and uncertainties (many of which are beyond the Company's control), including, but not limited to, risks and uncertainties regarding the success of our investments, risks and uncertainties regarding fluctuations in earnings, our ability to sustain our previous levels of profitability including on account of our ability to manage growth, intense competition, wage increases in China, our ability to attract and retain highly skilled professionals, client concentration, our ability to successfully complete and integrate potential acquisitions, withdrawal of governmental fiscal incentives, political instability and regional conflicts and legal restrictions on raising capital or acquiring companies outside China. Additional risks that could affect our future operating results are more fully described in our filings with United States Securities and Exchange Commission. These filings are available at .
We may, from time to time, make additional written and oral forward-looking statements, including statements contained in our filings with the Securities and Exchange Commission and our reports to stockholders. We do not undertake to update any forward-looking statements that may be made from time to time by us or on our behalf.
-- FINANCIAL TABLES FOLLOW --
Robert Haag
Managing Director
Hampton Growth, LLC (HGR)
Tel: +86-152-2174-3282
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Datum: 29.09.2011 - 11:00 Uhr
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News-ID 70846
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Livestock
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