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Pingtan Marine Enterprise Provides Update on its Operations

2017-05-11 21:37
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FUZHOU, China, May 11, 2017 /PRNewswire/ -- Pingtan Marine Enterprise Ltd. (Nasdaq: PME) ("Pingtan" or the "Company"), a global fishing company based in the People's Republic of China (PRC), today announced that it is providing to investors certain information about its business and operations.

Current Status of Some of Pingtan's Operations / Relationship with Indonesian Government

Pingtan is the second largest China-based fishery company operating its vessels outside of China waters.  Pingtan's business is to engage in ocean fishing, and currently conducts these operations through a fleet of Company owned vessels. In 2015, the China Agriculture Industry Development Fund Co., Ltd. invested approximately $65 million for an 8% equity interest in Pingtan's subsidiary Pingtan Fishing and currently holds the investment.  The China Agriculture Development Fund Co., Ltd. was established in 2012 by China's Ministry of Finance, Agricultural Development Bank of China, one of China's three state-owned policy banks, Cinda Asset Management Corporation (01359.HK), one of largest state-owned holding asset management company with register capital of 36 billion RMB, and CITIC Group, the biggest conglomerate of China. The China Agriculture Development Fund Co., Ltd. is the first China state-owned fund to focus on investing in all areas of the agriculture industry. This 4 billion RMB fund is managed by Cinda Asset Management Corporation.

Pingtan currently operates 140 fishing vessels. 12 vessels are operating in the Bay of Bengal in India, 13 vessels are operating in Indo-Pacific Waters, 4 vessels are operating in the international waters of Pacific Ocean and 2 vessels are operating in the international waters of Southwest Atlantic and Southeast Pacific Oceans since late December 2016.  All of these vessels are currently fully licensed to operate in their fishing territories. Pingtan's fleet has an average remaining useful life of approximately 13.4 years.

Based on its experience, the Company estimates that the purchase price its typical construction cost of a 150-foot fishing trawler to be is approximately $1.5 million, and Pingtan believes that the market value of its fleet is largely due to the required government-issued license on each vessel. Pursuant to China Distant Water Fisheries, there are approximately 2460 vessels from China that are operating in International waters that have qualified fishing licenses. The PRC government limits new license issuances. The Company considers the value of its fleet relatively similar to the taxi medallion market where the value of the limited license is greater than the physical cost of the means of transportation.

The Company initially operated in two areas, 1) the Exclusive Economic Zones in Arafura Sea in Indonesia and 2) in the Bay of Bengal in India.  However, as previously reported, the Indonesian government introduced a moratorium on issuing new fishing licenses and renewals so that the country's Ministry of Maritime Affairs and Fisheries could monitor the operations of existing fleets and to fight illegal fishing activities in December 2014. As a result, all licensed fishing vessels operating in Indonesian waters have been informed by the Indonesian government to operate within strict guidelines and subsequently to cease operation, in order to avoid potential enforcement actions, such as boat seizures, by the Indonesian Navy.

As a result, the Company ceased all operations in those waters in February 2015 and fully cooperated and complied with the Indonesian government.  The Company continues to voluntarily keep 104 of its available vessels in the region without any objection from the government, as it anticipates an eventual resumption of the license renewal process.

Pingtan has not been cited by or had any action brought to it by the Indonesian government, or any governmental body.

The Company has posted extensive information on the entirety of the Company's fishing fleet, including titles and licenses onto its website at the following link: http://www.ptmarine.com/fishing-operations/our-vessels.

The Company is also including examples of its licenses as available pictures.

Example of Fishing Vessel License
Example of Fishing Vessel License

Example of Fishing Vessel License

Example of Fishing Vessel License
Example of Fishing Vessel License

Example of Fishing Vessel License

The Company's Catch

Pingtan's revenues are derived from the sale of frozen fish and other marine catches.  The majority of the Company's sales are through a species of fish known as Ribbon Fish, which is popular throughout China. Pingtan provides specific volume data for investors to evaluate regarding each species of fish. 

For the year ended December 31, 2016, the Company's revenue by species of fish was as follows (dollars in thousands, except for average price):



Year Ended December 31, 2016




Revenue



Volume (KG)



Average
price



Percentage of
revenue


Ribbon fish


$

10,374




3,611,925



$

2.87




50.5

%

Croaker fish



6,187




2,495,291




2.48




30.1

%

Reefcod



995




526,940




1.89




4.8

%

Squid



695




492,844




1.41




3.4

%

Shrimp



527




117,528




4.48




2.6

%

Conger eel



449




190,249




2.36




2.2

%

Others



1,314




401,946




3.27




6.4

%

Total


$

20,541




7,836,723



$

2.62




100.0

%

The Company also include a portion of the customs declaration forms of its fishing products as an example to review:

Example of Customs Declaration Form
Example of Customs Declaration Form

Example of Customs Declaration Form

Background on Pingtan Management

Xinrong Zhuo has served as Chairman of the Company's Board since the business combination in February 2013. Prior to that, since August 2010, he served as the chairman and Chief Executive Officer of the predecessor company.  As previously reported by the Company in filings with the Securities and Exchange Commission, in 2010, Mr. Zhuo did move to Hong Kong and officially changed his name. He has held executive level positions in companies throughout China.

The Company is including a photo that shows the certificate issued by Pingtan Local Public Security Bureau on May 11, 2017 to certify that Mr. Zhuo's permanent residence status was changed on October 21, 2010 due to Mr. Zhuo's change in residence to Hong Kong.

Photo Certifying Mr. Zhou’s Change in Residence to Hong Kong
Photo Certifying Mr. Zhou’s Change in Residence to Hong Kong

List of the Company's Fishing Vessels:

Vessel Name

Fishing Method

Current Location /
Area of Fishing

Completion
Date

Gross
Tonnage

Net
Tonnage

Current Ownership
Status

Link to
Available
Valuation
Reports

FU YUAN YU
793

Drift Net

Indonesia

2/15/2001

210

85

Pingtan Fishing


FU YUAN YU
794

Drift Net

Indonesia

9/22/2003

207

102

Pingtan Fishing


FU YUAN YU
7882

Squid Jigging

International

9/29/2016

1478

481

Pingtan Fishing


FU YUAN YU
7883

Squid Jigging

International

9/29/2016

1478

481

Pingtan Fishing


FU YUAN YU
735

Trawler

Indonesia

8/15/1988

236

70

Pingtan Fishing


FU YUAN YU
736

Trawler

Indonesia

8/15/1988

236

70

Pingtan Fishing


FU YUAN YU
737

Trawler

Indonesia

10/10/1989

192

57

Pingtan Fishing


FU YUAN YU
738

Trawler

Indonesia

10/10/1989

192

57

Pingtan Fishing


FU YUAN YU
750

Trawler

Indonesia

10/24/1989

270

94

Pingtan Fishing


FU YUAN YU
751

Trawler

Indonesia

10/24/1989

270

94

Pingtan Fishing


FU YUAN YU
151

Trawler

Indonesia

8/28/1990

230

69

Pingtan Fishing


FU YUAN YU
152

Trawler

Indonesia

8/28/1990

230

69

Pingtan Fishing


FU YUAN YU
901

Drift Net

Indonesia

7/28/2013

258

117

Operating rights
(leased from Honglong)

Report

FU YUAN YU
902

Drift Net

Indonesia

7/28/2013

258

117

Operating rights
(leased from Honglong)

Report

FU YUAN YU
725

Trawler

Indonesia

11/25/2011

297

136

Pingtan Fishing


FU YUAN YU
726

Trawler

Indonesia

11/25/2011

297

136

Pingtan Fishing


FU YUAN YU
727

Trawler

Indonesia

12/31/2011

297

136

Pingtan Fishing


FU YUAN YU
728

Trawler

Indonesia

12/31/2011

297

136

Pingtan Fishing


FU YUAN YU
729

Trawler

Indonesia

2/23/2012

297

136

Pingtan Fishing


FU YUAN YU
730

Trawler

Indonesia

2/23/2012

297

136

Pingtan Fishing


FU YUAN YU
731

Trawler

Indonesia

4/28/2012

297

136

Pingtan Fishing


FU YUAN YU
732

Trawler

Indonesia

4/28/2012

297

136

Pingtan Fishing


FU YUAN YU
733

Trawler

Indonesia

4/28/2012

297

136

Pingtan Fishing


FU YUAN YU
734

Trawler

Indonesia

4/28/2012

297

136

Pingtan Fishing


FU YUAN YU
739

Trawler

Indonesia

7/15/2012

292

131

Pingtan Fishing


FU YUAN YU
740

Trawler

Indonesia

7/15/2012

292

131

Pingtan Fishing


FU YUAN YU
741

Trawler

Indonesia

7/31/2012

292

131

Pingtan Fishing


FU YUAN YU
742

Trawler

Indonesia

7/31/2012

292

131

Pingtan Fishing


FU YUAN YU
743

Trawler

Indonesia

8/3/2012

292

131

Pingtan Fishing


FU YUAN YU
745

Trawler

Indonesia

8/3/2012

292

131

Pingtan Fishing


FU YUAN YU
746

Trawler

Indonesia

8/15/2012

292

131

Pingtan Fishing


FU YUAN YU
747

Trawler

Indonesia

8/15/2012

292

131

Pingtan Fishing


FU YUAN YU
748

Trawler

Indonesia

8/23/2012

292

131

Pingtan Fishing


FU YUAN YU
749

Trawler

Indonesia

8/23/2012

292

131

Pingtan Fishing


FU YUAN YU
155

Trawler

Indonesia

11/15/1987

272

81

Pingtan Fishing


FU YUAN YU
156

Trawler

Indonesia

10/1/1987

274

82

Pingtan Fishing


FU YUAN YU
171

Trawler

India

3/31/2013

316

160

Pingtan Fishing


FU YUAN YU
172

Trawler

India

3/31/2013

316

160

Pingtan Fishing


FU YUAN YU
173

Trawler

India

4/29/2013

316

160

Pingtan Fishing


FU YUAN YU
174

Trawler

India

4/29/2013

316

160

Pingtan Fishing


FU YUAN YU
175

Trawler

India

5/27/2013

316

160

Pingtan Fishing


FU YUAN YU
176

Trawler

India

5/27/2013

316

160

Pingtan Fishing


FU YUAN YU
177

Trawler

Indonesia

5/29/2013

316

160

Pingtan Fishing


FU YUAN YU
178

Trawler

Indonesia

5/29/2013

316

160

Pingtan Fishing


FU YUAN YU
179

Trawler

Indonesia

6/4/2013

316

160

Pingtan Fishing


FU YUAN YU
180

Trawler

Indonesia

6/4/2013

316

160

Pingtan Fishing


FU YUAN YU
181

Trawler

Indonesia

6/17/2013

316

160

Pingtan Fishing


FU YUAN YU
182

Trawler

Indonesia

6/17/2013

316

160

Pingtan Fishing


FU YUAN YU
185

Trawler

Indonesia

7/25/2013

316

160

Pingtan Fishing


FU YUAN YU
186

Trawler

Indonesia

7/25/2013

316

160

Pingtan Fishing


FU YUAN YU
187

Trawler

Indonesia

7/4/2013

316

160

Pingtan Fishing


FU YUAN YU
188

Trawler

Indonesia

7/4/2013

316

160

Pingtan Fishing


FU YUAN YU
183

Trawler

Indonesia

7/16/2013

316

160

Pingtan Fishing


FU YUAN YU
184

Trawler

Indonesia

7/16/2013

316

160

Pingtan Fishing


FU YUAN YU
560

Trawler

Indonesia

5/10/2012

237

95

Pingtan Fishing

Report

FU YUAN YU
561

Trawler

Indonesia

5/10/2012

237

95

Pingtan Fishing

Report

FU YUAN YU
562

Trawler

Indonesia

5/10/2012

237

95

Pingtan Fishing

Report

FU YUAN YU
563

Trawler

Indonesia

5/10/2012

237

95

Pingtan Fishing

Report

FU YUAN YU
564

Trawler

Indonesia

5/10/2012

237

95

Pingtan Fishing

Report

FU YUAN YU
565

Trawler

Indonesia

5/10/2012

237

95

Pingtan Fishing

Report

FU YUAN YU
566

Trawler

Indonesia

5/21/2012

237

95

Pingtan Fishing

Report

FU YUAN YU
567

Trawler

Indonesia

5/21/2012

237

95

Pingtan Fishing

Report

FU YUAN YU
568

Trawler

Indonesia

5/21/2012

237

95

Pingtan Fishing

Report

FU YUAN YU
569

Trawler

Indonesia

5/21/2012

237

95

Pingtan Fishing

Report

FU YUAN YU
570

Trawler

Indonesia

5/21/2012

237

95

Pingtan Fishing

Report

FU YUAN YU
571

Trawler

Indonesia

5/21/2012

237

95

Pingtan Fishing

Report

FU YUAN YU
572

Trawler

Indonesia

5/21/2012

237

95

Pingtan Fishing

Report

FU YUAN YU
573

Trawler

Indonesia

5/21/2012

237

95

Pingtan Fishing

Report

FU YUAN YU
574

Trawler

Indonesia

5/21/2012

237

95

Pingtan Fishing

Report

FU YUAN YU
575

Trawler

Indonesia

5/21/2012

237

95

Pingtan Fishing

Report

FU YUAN YU
576

Trawler

Indonesia

5/23/2012

237

95

Pingtan Fishing

Report

FU YUAN YU
577

Trawler

Indonesia

5/23/2012

237

95

Pingtan Fishing

Report

FU YUAN YU
578

Trawler

Indonesia

5/23/2012

237

95

Pingtan Fishing

Report

FU YUAN YU
579

Trawler

Indonesia

5/23/2012

237

95

Pingtan Fishing

Report

FU YUAN YU
193

Light Luring
Seine Vessel

Indonesia

4/10/2014

521

244

Pingtan Fishing


FU YUAN YU
7864

Longline Fishing

International

1/3/2017

538

194

Pingtan Fishing

Report

FU YUAN YU
532

Trawler

Indonesia

6/15/1987

280

87

Pingtan Fishing

Report

FU YUAN YU
533

Trawler

Indonesia

6/15/1987

280

87

Pingtan Fishing

Report

FU YUAN YU
535

Trawler

Indonesia

12/5/1990

293

88

Pingtan Fishing

Report

FU YUAN YU
536

Trawler

Indonesia

12/5/1990

293

88

Pingtan Fishing

Report

FU YUAN YU
537

Trawler

Indonesia

6/15/1982

480

144

In the process of transfer


FU YUAN YU
538

Trawler

Indonesia

6/15/1982

480

144

In the process of transfer


FU YUAN YU
539

Trawler

Indonesia

10/15/1989

364

144

Pingtan Fishing

Report

FU YUAN YU
540

Trawler

Indonesia

10/15/1989

357

144

Pingtan Fishing

Report

FU YUAN YU
755

Trawler

Indonesia

7/25/2001

269

80

Pingtan Fishing

Report

FU YUAN YU
756

Trawler

Indonesia

7/25/2001

269

80

Pingtan Fishing

Report

FU YUAN YU
757

Trawler

Indonesia

7/25/2001

269

80

Pingtan Fishing

Report

FU YUAN YU
758

Trawler

Indonesia

7/25/2001

269

80

Pingtan Fishing

Report

FU YUAN YU
759

Trawler

Indonesia

7/25/2001

269

80

Pingtan Fishing

Report

FU YUAN YU
903

Drift Net

Indonesia

7/28/2013

258

117

Operating rights
(leased from Honglong)

Report

FU YUAN YU
904

Drift Net

Indonesia

7/28/2013

258

117

Operating rights
(leased from Honglong)

Report

FU YUAN YU
905

Drift Net

Indonesia

8/12/2013

258

117

Operating rights
(leased from Honglong)

Report

FU YUAN YU
907

Drift Net

Indonesia

8/12/2013

258

117

Operating rights
(leased from Honglong)

Report

FU YUAN YU
906

Drift Net

Indonesia

8/12/2013

258

117

Operating rights
(leased from Honglong)

Report

FU YUAN YU
908

Drift Net

Indonesia

8/12/2013

258

117

Operating rights
(leased from Honglong)

Report

FU YUAN YU
909

Drift Net

Indonesia

8/12/2013

258

117

Operating rights
(leased from Honglong)

Report

FU YUAN YU
910

Drift Net

Indonesia

8/12/2013

258

117

Operating rights
(leased from Honglong)

Report

FU YUAN YU
911

Drift Net

Indonesia

8/26/2013

258

117

Operating rights
(leased from Honglong)

Report

FU YUAN YU
912

Drift Net

Indonesia

8/26/2013

258

117

Operating rights
(leased from Honglong)

Report

FU YUAN YU
913

Drift Net

Indonesia

8/26/2013

258

117

Operating rights
(leased from Honglong)

Report

FU YUAN YU
914

Drift Net

Indonesia

8/26/2013

258

117

Operating rights
(leased from Honglong)

Report

FU YUAN YU
915

Drift Net

Indonesia

9/2/2013

258

117

Operating rights
(leased from Honglong)

Report

FU YUAN YU
916

Drift Net

Indonesia

9/2/2013

258

117

Operating rights
(leased from Honglong)

Report

FU YUAN YU
917

Drift Net

Indonesia

9/10/2013

258

117

Operating rights
(leased from Honglong)

Report

FU YUAN YU
918

Drift Net

Indonesia

9/10/2013

258

117

Operating rights
(leased from Honglong)

Report

FU YUAN YU
919

Drift Net

Indonesia

9/2/2013

258

117

Operating rights
(leased from Honglong)

Report

FU YUAN YU
920

Drift Net

Indonesia

9/2/2013

258

117

Operating rights
(leased from Honglong)

Report

FU YUAN YU
9607

Drift Net

Indo-Pacific
waters

8/25/2014

225

70

In the process of transfer

Report

FU YUAN YU
9608

Drift Net

Indo-Pacific
waters

8/25/2014

225

70

In the process of transfer

Report

FU YUAN YU
189

Trawler

Indonesia

6/29/2013

316

160

Pingtan Fishing


FU YUAN YU
190

Trawler

Indonesia

6/29/2013

316

160

Pingtan Fishing


FU YUAN YU
191

Light Luring
Seine Vessel

Indonesia

3/28/2014

521

244

Pingtan Fishing


FU YUAN YU
9709

Trawler

India

6/24/2014

225

70

Pingtan Fishing


FU YUAN YU
9710

Trawler

India

7/18/2014

225

70

Pingtan Fishing


FU YUAN YU
9711

Trawler

India

7/18/2014

225

70

Pingtan Fishing


FU YUAN YU
9712

Trawler

India

7/18/2014

225

70

Pingtan Fishing


FU YUAN YU
9713

Trawler

India

7/18/2014

225

70

Pingtan Fishing


FU YUAN YU
9714

Trawler

India

7/18/2014

225

70

Pingtan Fishing


FU YUAN YU
7861

Longline Fishing

International

1/3/2017

538

194

Pingtan Fishing

Report

FU YUAN YU
7862

Longline Fishing

International

1/3/2017

538

194

Pingtan Fishing

Report

FU YUAN YU
7863

Longline Fishing

International

1/3/2017

538

194

Pingtan Fishing

Report

FU YUAN YU
192

Light Luring
Seine Vessel

Indonesia

4/10/2014

521

244

Pingtan Fishing


FU YUAN YU
791

Trawler

Indonesia

10/15/1995

266

82

Pingtan Fishing


FU YUAN YU
792

Trawler

Indonesia

10/15/1995

266

82

Pingtan Fishing


FU YUAN YU
9609

Drift Net

Indo-Pacific
waters

9/23/2014

225

67

In the process of transfer

Report

FU YUAN YU
9610

Drift Net

Indo-Pacific
waters

9/23/2014

225

67

In the process of transfer

Report

FU YUAN YU
9611

Drift Net

Indo-Pacific
waters

9/23/2014

225

67

In the process of transfer

Report

FU YUAN YU
9613

Drift Net

Indo-Pacific
waters

9/23/2014

225

67

In the process of transfer

Report

FU YUAN YU
9614

Drift Net

Indo-Pacific
waters

9/23/2014

225

67

In the process of transfer

Report

FU YUAN YU
9615

Drift Net

Indo-Pacific
waters

9/23/2014

225

67

In the process of transfer

Report

FU YUAN YU
9616

Drift Net

Indo-Pacific
waters

9/23/2014

225

67

In the process of transfer

Report

FU YUAN YU
9617

Drift Net

Indo-Pacific
waters

10/17/2014

225

67

In the process of transfer

Report

FU YUAN YU
9618

Drift Net

Indo-Pacific
waters

10/17/2014

225

67

In the process of transfer

Report

FU YUAN YU
9620

Drift Net

Indo-Pacific
waters

10/17/2014

225

67

In the process of transfer

Report

FU YUAN YU
9621

Drift Net

Indo-Pacific
waters

10/17/2014

225

67

In the process of transfer

Report

FU YUAN YU
F91

Transport/
Refrigerated

International

12/14/1984

2946

1358

In the process of transfer

Report

FU YUAN YU
795

Squid Jigging

International

4/4/1981

655

231

In the process of transfer

Report

FU YUAN YU
796

Squid Jigging

International

12/25/1983

663

248

In the process of transfer

Report

FU YUAN YU
7880

Squid Jigging

International

8/28/2014

1497

509

In the process of transfer

Report

FU YUAN YU
7881

Squid Jigging

International

8/28/2014

1497

509

In the process of transfer

Report

About Pingtan

Pingtan is a global fishing company engaging in ocean fishing through its subsidiary, Fujian Provincial Pingtan County Ocean Fishing Group Co., Ltd., or Pingtan Fishing.

Business Risks and Forward-Looking Statements

This press release may contain forward-looking statements that are subject to the safe harbors created under the Securities Act of 1933 and the Securities Exchange Act of 1934.   These statements can be identified by the use of forward-looking terminology such as "believe," "expect," "may," "will," "should," "project," "plan," "seek," "intend," or "anticipate" or the negative thereof or comparable terminology. Although forward-looking statements reflect the good faith judgment of our management, such statements can only be based on facts and factors currently known by us. Consequently, forward-looking statements are inherently subject to risks and uncertainties and actual results and outcomes may differ materially from the results and outcomes discussed in or anticipated by the forward-looking statements. Risks include ability to successfully implement business strategies; need for additional capital and the availability of financing; ability to successfully manage relationships with customers, distributors and other important relationships; technological changes; competition; demand for our products and services; the deterioration of general economic conditions, whether internationally, nationally or in the local markets in which we operate; legislative or regulatory changes that may adversely affect our business; operational, mechanical, climatic or other unanticipated issues that adversely affect the production capacity of the Company's fishing vessels and their ability to generate expected annual revenue and net income; legal and regulatory environment and other risk factors  contained in Pingtan's SEC filings available at www.sec.gov, including Pingtan's most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date on which they are made. Pingtan undertakes no obligation to update or revise any forward-looking statements for any reason.

CONTACT:

Roy Yu
Chief Financial Officer
Pingtan Marine Enterprise Ltd.
Tel: +86 591 87271753
ryu@ptmarine.net

INVESTOR RELATIONS
Katherine Yao, Senior Associate
Tel: +86 10 6587 6435
kyao@equityny.com

Adam Prior, Senior Vice President
Tel: (212) 836-9606
aprior@equityny.com

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/pingtan-marine-enterprise-provides-update-on-its-operations-300456083.html

Source: Pingtan Marine Enterprise Ltd.

Related stocks: NASDAQ-NMS:PME

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