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China Marine Food Group Hosts Completion Ceremony of its New Cold Storage Facility

2012-04-20 21:00 705

SHISHI, China, April 20, 2012 /PRNewswire-Asia-FirstCall/ -- China Marine Food Group Limited (NYSE Amex: CMFO) ("China Marine" or the "Company"), a China-based manufacturer of Mingxiang® seafood-based snack foods, "Hi-Power" marine algae-based beverages, and distributor of frozen marine catch, today announced that it completed construction of its new 20,000 tons cold storage facility located in the port of Shi Shi, China.

China Marine began construction of the new cold storage facility in September 2010. The new state-of-the-art facility is the only facility to be located directly in the port of Shi Shi, one of the largest fishing ports on the East Coast of China. The facility will be used to store raw materials used for the production of China Marine's Mingxiang®-branded seafood snacks and also as a dedicated warehousing facility for China Marine's marine-catch trading business. Additionally, the Company will lease out a portion of its cold storage to other marine catch distributors, avail blast-freezing services for high value catch, and sell ice to fishermen in the port. All of the facility's equipment has been installed and is undergoing extensive testing in preparation for cold storage, blast-freezing and ice demands in the summer months.

"We are pleased that one of our Shi-Shi enterprises and a US-listed public company will provide such an extremely valuable service to our fishing industry in Shi Shi," began the Mayor of Xiang Zhi town, Mr. Xiaoxin Hong. "For people familiar with commercial fishing, cold storage, blast freezing and ice are critical components of the industry and demand for such services remains high during all times of the fishing seasons. We were firm supporters of China Marine's plan for the port and anticipate they will benefit from an immediate impact from prospective customers."

The Company hosted several customers and local government officials on April 16th to commemorate the completion of this facility. The link below hosts two photos from the opening ceremony on China Marine's Website.

http://www.china-marine.cn/eng/p2.asp?SpecialOffer=&ItemClass1=Cold+Storage+Facilities&ItemClass2=%2D&ItemClass3=%2D&ItemClass4=%2D&viewresult=&viewresult2=&type=&searchword=&RecStart=18

Mr. Pengfei Liu, CEO explained, "We have completed a major investment that will generate an attractive return to shareholders in long run. The new cold storage facility, the most advanced of its kind in Shi Shi city, will allow us to reduce our own storage costs, maintain better logistical control of our inventories and expand our marine catch business. Aside from the storage benefits to our own operations, the availability of blast freezing and chipped ice is a large and currently underserviced market in the port. Customers are expected to quickly line up for such services once the facility becomes fully operational in a very short period of time."

The total construction cost for the facility was approximately $24.5 million. The Company expects to generate approximately $8.0 million of revenues and $4.0 million of net income from the new facility per annum.

About China Marine

China Marine Food Group Limited is a food and beverage manufacturer of Mingxiang® seafood-based snack foods, "Hi-Power" marine algae-based health drinks, and a wholesaler of frozen marine catch in five provinces in the PRC. Founded in 1994, China Marine has grown steadily and positioned its Mingxiang® brand as a category leader in 3,200 retail food sales points and 12,000 beverage sales points in China. The Company has received "The Famous Brand" and "Green Food" awards. Located in Fujian province, it is one of the largest coastal provinces in the PRC and a vital navigation hub between the East China Sea and the South China Sea. The Company is committed to the highest standard of quality control with the ISO9001, ISO14001, HACCP certification and EU export registration.

Forward Looking Statements

This release contains certain "forward-looking statements" relating to the business of China Marine Food Group Limited and its subsidiary companies, which can be identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions. Such forward looking statements involve known and unknown risks and uncertainties, including all business uncertainties relating to product development, marketing, concentration in a single customer, raw material costs, market acceptance, future capital requirements, competition in general and other factors that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Certain of these risks and uncertainties are or will be described in greater detail in our filings with the Securities and Exchange Commission. China Marine Food Group Limited is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.

For more information, please contact:




Company


Mr. Marco Hon Wai Ku, CFO


China Marine Food Group Limited


Suite 815, 8th Floor, Ocean Centre

Harbour City, Tsimshatsui

Kowloon, HONG KONG


Tel: +852-2111-8768


Email: marco.ku@china-marine.cn


Web: http://www.china-marine.cn




Investor Relations


John Mattio, SVP


MZ North America


Tel: US +1-212-301-7130


Email: john.mattio@mzgroup.us


Web: www.mz-ir.com


Source: China Marine Food Group Limited
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Keywords: Food/Beverages
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