Sen Yu International Holdings Inc., a leading commercial hog breeder and supplier in the People’s Republic of China, today announced improved financial results for its fiscal year 2011. The company said it is confidant its current operations and rising demand will generate continuing growth.
“We experienced record revenues and profits in fiscal 2011 based on strong demand for our high quality breeding and commercial hogs,” Zhenyu (Jack) Shang, founder, chairman and CEO of Sen Yu stated in the press release. ” … We believe our efficient business model and advanced breeding techniques, coupled with the demand we see for our products, will help us to continue to capture market share and drive our future growth.”
Revenue for the fiscal year ended June 30, 2011, increased 41.8 percent to a record $99.8 million compared to $70.4 million for the fiscal year ended June 30, 2010. The company attributes the increase to demand from its existing major customers, Beijing Dahongmen and Beijing Fifth Meat Factory.
Gross profit for the fiscal year ended June 30, 2011, increased 84.6 percent to $11.9 million compared to $14.0 million for the fiscal year ended June 30, 2010. Gross margin for fiscal 2011 increased to 26.0 percent from 20.0 percent for fiscal 2010.
Sen Yu reported that operating expenses for fiscal 2011 decreased 12.2 percent to $6.9 million from $7.9 million for fiscal 2010.
The company’s operating income for the fiscal year ended June 30, 2011, increased 207.4 percent to $19.0 million from $6.2 million for the fiscal year ended June 30, 2010.
Net income for 2011 increased to $36.1 million, or $1.40 per diluted share, which includes a gain of $17.2 million related to the change in the fair value of warrants, compared to $4.3 million, or $0.29 per diluted share, for 2010, which includes a non-cash expense of $2.0 million related to the fair value of warrants.
As of June 30, 2011, Sen Yu had $11.4 million in cash and cash equivalents, an increase of 96.4 percent from $5.8 million as of June 30, 2010, and $59.2 million in working capital, an increase of 189.6% from working capital of $20.5 million at June 30, 2010.
Moving forward, broader factors contribute to the company’s optimistic expectations.
“We see significant growth for our industry going forward and believe that strong demand from Chinese consumers for high quality pork coupled with rising domestic incomes and economic expansion will stimulate even greater demand for our high quality breeding hogs,” Shang stated. “The market for breeding and commercial hogs is becoming very attractive to foreign investors as China is the world’s largest consumer of pork and produces some 50 million tons of pork every year to feed a population of over 1.3 billion. We continue to expand our production and refine our breeding techniques to meet the rising demand from China’s middle class. Going forward, we believe pork consumption and production will continue to rise and that Sen Yu is well positioned to capture greater revenue and profit.”
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