Sen Yu International Holdings Inc., a leading commercial hog breeder and supplier in the People’s Republic of China, yesterday announced its financial results for its fiscal third quarter ended March 31, 2011, posting increases across the board.
Total revenue grew 36 percent to $20.3 million for 2011 compared to $14.9 million reported in the same period the year prior. The company attributes the increase to bigger orders from its major customers.
“We experienced higher revenue and gross profit in what is typically a slower season following the Chinese holidays,” Zhenyu (Jack) Shang, founder, chairman and CEO of Sen Yu Holdings stated in the press release. “This was driven by increased orders from our two major customers, Beijing Dahongmen and Beijing Fifth Meat Factory, resulting in solid revenue increases and a 107 percent increase in gross profit for the quarter.”
Gross profit for the three months ended March 31, 2011, increased 107 percent to $5.5 million from $2.7 million for the three months ended March 31, 2010. Gross margin for the three months ended March 31, 2011, increased to 27.2 percent from 17.9 percent for the three months ended March 31, 2010.
Net income for three months ended March 31, 2011, was $55,696, or $0.00 per diluted share, compared to $1.4 million, or $0.08 cents per diluted share, for the three months ended March 31, 2010.
As of March 31, 2011, Sen Yu Holdings had $14 million in cash and cash equivalents, a 139.6 percent increase from $5.8 million as of June 30, 2010. The company had working capital of $37.8 million compared to working capital of $20.5 million at June 30, 2010.
Shang said the company anticipates continued strength on rising demand and China’s economic environment.
“We continue to see significant growth for our industry, underpinned by strong demand for quality pork among Chinese consumers,” Shang stated. “China’s economy continues to grow rapidly, buoyed by a rising middle class and the continued preference for pork as a main and most popular source of protein among the Chinese population. To meet rising consumer demand, we continue to refine our breeding techniques and expand production based on increases in orders for commercial hogs from our customers. Based on China’s economic expansion and government policies encouraging domestic pig production, we believe pork production and consumption will continue to rise, helping to fuel strong revenues and profits in our business going forward.”
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