Revenue and earnings sharply higher
HONG KONG, April 28, 2011 /PRNewswire-Asia/ -- DaChan Food (Asia) Limited ("DaChan Food" or the "Company", Stock Code: 3999), the leading chicken meat products supplier in China, announced today its financial results for the three months ended 31 March 2011. Thanks to continued increases in the price of chicken meat and enhancement of food operation, the Company turned in remarkable results for both revenue and earnings during the period. Revenue was 11.5% higher compared to the same period last year while gross profit surged 59.4% over the same period.
During the period under review, the Company's revenue grew to just under RMB2.36 billion while gross profit amounted to close to RMB200 million. Gross profit margin increased to 8.3% from 5.8% in the same period last year.
As a result of the significant improvement in financial performance, DaChan Food's balance sheet remains solid while its cash holdings continue to stay at a healthy level. As at 31 March 2011, DaChan Food had net assets of approximately RMB1.87 billion with a healthy current ratio of 1.5 times and a gearing ratio of 21.9%.
"In 2011, the Group will focus on research and development so as to consolidate its leadership position in quality chicken meat and feeds production. With the promotion of a modernized agricultural industry in China's 12th Five Year Plan and the continued increase in income level nationally, the Company expects the chicken meat market to continue to grow in China. The Company is well-positioned to capitalize on the industry's promising growth prospect in the long run. In addition, the Group will also further optimize its business management, maintain stringent cost control and strengthen its competitive edge," said Mr. Han Jia-Hwan, Chairman of the Board of DaChan Food.
As a socially responsible company, DaChan Food places the greatest importance on the provision of healthy and safe food to consumers. Hundreds of research and development experts at DaChan Food monitor the production from feeds to farming methods to food formulas, and strive to ensure products of the highest quality are delivered to the hands of consumers. In addition, DaChan Food has adopted a highly vertically integrated business model and integrated feed production methods, from hatching and slaughtering of chickens, to the processing of chicken meat and the production of processed food on a unified operating platform. This business model enables the Company to ensure the quality and safety of all products in an effective manner, through putting in place stringent quality and hygiene control measures. Building on the foundation of these measures, DaChan Food has launched a product tracing system that allows customers to trace detailed information about the products they have purchased. This initiative has been met with good response from consumers since launch, and it has boosted both the Company's brand reputation as well as the popularity of its products. The Company's efforts to differentiate its products have enhanced its competitive edge as its sales network continues to expand, which in turn has provided solid support to the Company's financial performance.
Information of DaChan Food (Asia) Limited
DaChan Food is one of the largest chicken meat products and feeds producers in China. Its business mode is highly vertically-integrated, which includes chicken meat production, processed foods supply and feed production. DaChan Food supplies raw chicken meat to a number of well-known international companies, including KFC, McDonald's (through its exclusive chicken meat purchasing agents Husi and McKey) and Dicos. DaChan Food was listed on the Main Board of the Hong Kong Stock Exchange on 4 October 2007.
