HONG KONG, April 27, 2012 /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 2012. In the first quarter of 2012, the Company's main business segments sustained their growth momentum and the Company's turnover recorded a 13.8% year-on-year increase. The increase in turnover was mainly attributable to the growing sales volume of the processed foods segment and the chicken meat segment.
During the period under review, the Company recorded turnover of approximately RMB2.68 billion, representing an increase of 13.8% year-on-year. However, as the price of chicken meat declined, the Company's gross profit dropped by 2.6% year-on-year to approximately RMB0.19 billion. Nevertheless, the Company continued to maintain a healthy balance sheet. As at 31 March 2012, the net assets of the Company were approximately RMB2.04 billion, while current ratio and gearing ratio were maintained at 1.58 times and 25%, respectively.
Backed by its vertically-integrated business model from animal nutrition to processed food, as well as the Company's strategy of strengthening the processed food business segment, the Company recorded steady growth in the first quarter of 2012. Meanwhile, as food safety is becoming an important and growing concern in China, DaChan Food's "Sisters' Kitchen" brand and its food security tracing system have been well-received by the consumer market. Leveraging its vertically-integrated business model, DaChan Food ensures that all products delivered to its customers are safe and of high quality, making it the first choice for consumers who demand safe and guaranteed products. To address consumers' growing concerns about food safety, the Company's food security tracing system will provide a solid foundation for the long-term development of its processed foods segment.
Han Jia-Hwan, Chairman of the Board of DaChan Food, said, "Looking ahead, we will put more emphasis on R&D in feed production technology so as to promote the advantages of our products. We will also continue to implement our food security tracing system to ensure that we provide safe, high quality products. Moreover, the Company will not only continue the development of the feeds market in both China and Vietnam, but will also dedicate effort to expanding our foods segment and enhancing the value of it adds to our meat products so as to consolidate DaChan Food's leading position as a quality meat protein supplier and a pioneer producer of poultry feeds."
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.
