Company also Completes 2009 Filing with SAIC
SHISHI, China, June 10 /PRNewswire-Asia/ -- China Marine Food Group Limited (NYSE Amex: CMFO) ("China Marine" or the "Company"), a manufacturer of Mingxiang(R) seafood-based snack foods, "Hi-Power" marine algae-based beverages and a distributor of frozen marine catch, today provided an update on the distribution and sales of Hi-Power marine algae-based beverages and confirmed that its 2009 report was filed on time with the State Administration for Industry & Commerce ("SAIC") and consistent with figures filed with the SEC and tax bureaus in the People's Republic of China ("PRC").
Year to Date Hi-Power Beverage Update
For the first three months of 2010 ended March 30 2010, China Marine reported $2.8 million in sales of Hi-Power beverages and has forecast $20.0 million for the full year 2010. Since completing the acquisition on January 1, 2010, the Company has focused on market research and analysis to improve product packaging before launching Hi-Power under its Mingxiang(R) brand which included the incorporation of a new metallic red and gold label. During the first quarter of 2010, the Company began an aggressive advertising, marketing and promotional campaign that resulted in several stocking orders from distributors in Fujian Province, the initial targeted market. Each distributor who ordered Hi-Power has re-ordered during the first two months of the second quarter. Distributors in Guangzhou and Shanghai have placed initial stocking orders in addition to several of China Marine's food distributors who have added Hi-Power beverages to their stocking orders. Year to date and through May 31, 2010, China Marine has recorded approximately $4.9 million in sales of Hi-Power. The Company also stated that May 2010 sales increased by approximately 20% versus April 2010 confirming its sales of Hi-Power are increasing on a monthly basis.
"We expect Hi-Power to be a meaningful contributor to our growth and are starting to see traction in our initial target markets," began Pengfei Liu, Chairman and CEO. "By improving the packaging and incorporating market feedback into our sales strategy, we have witnessed month-over-month increases in stocking orders and follow-on sales for Hi-Power. To date, we have placed Hi-Power on the shelves of several supermarkets and convenience stores in Fujian province and expanded our hospitality and hotel sales to new hotel chains. Brand recognition is gaining momentum and we will be rolling out Hi-Power to targeted markets during the next six to twelve months. We expect that the contribution from sales of Hi-Power will continue to ramp up quarter over quarter for the rest of the year to reach our guidance of $20.0 million for the full year 2010."
SAIC 2009 Reporting
China Marine Food Group Limited has confirmed it has submitted its audited financials of Shishi Rixiang Marine Foods Co., Ltd with the SAIC in the PRC on April 9, 2010.
The SAIC is the Chinese government agency responsible for issuing and renewing a company's annual business license. The results contained in the filing are consistent with those reported in the Company's 2009 audited financial statements as filed with the U.S. Securities and Exchange Commission and the tax bureaus in the PRC. A copy of the documents received and accepted by the SAIC on April 9, 2010 is retained as corporate records with China Marine.
About China Marine
China Marine Food Group Ltd. is a food and beverage manufacturer of Mingxiang(R) seafood-based snack foods, "Hi-Power" marine algae-based health drinks, and a wholesaler of frozen marine catch in seven provinces in the PRC. Founded in 1994, China Marine has grown steadily and positioned its Mingxiang(R) branded products as a category leader in 2,900 retail sales points in the PRC. The Company has received "The Famous Brand" and "Green Food" awards, and is located in Fujian province, 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
Marco Hon Wai Ku, CFO
Suite 815, 8th Floor
Ocean Centre, Harbour City
Kowloon, HONG KONG
Tel: +852-2111-8768
Email: marco.ku@china-marine.cn
Web: http://www.china-marine.cn
INVESTOR RELATIONS
John Mattio, SVP
HC International, New York
Tel: +1-203-616-5144 (U.S.)
Email: john.mattio@hcinternational.net
Web: http://www.hcinternational.net
