Yuhe International, Inc. reported a strong increase in sales and net income on a year over year basis in the second quarter of 2010. Management attributed the increase to higher sales of chicken broilers.

Yuhe International, Inc. reported sales of $12.5 million in the second quarter of 2010, compared to $9.8 million in the corresponding quarter of 2009. The company reported net income of $3.1 million, or $0.19 per diluted share, in the second quarter of 2010, compared to net income of $2.1 million, or $0.13 per diluted share, in the same period last year.

Yuhe International, Inc. sold 34.6 million chicken broilers during the quarter, compared to only 25.7 million in the second quarter of 2009. The average selling price per chicken broiler was approximately flat on a year over year basis.

The management of Yuhe International, Inc. was encouraged by the strong quarter and reaffirmed guidance for 2010. The company expects to sell 150 million chicken broilers in 2010 and generate sales of $17 million.

Yuhe International, Inc. made a large investment in July 2010 to increase chicken broiler capacity. The company purchased five chicken breeder farms in Liaoning Province for $3.1 million and 300,000 shares of restricted common stock of Yuhe International, Inc. The farms have capacity of 430,000 breeder sets.

For more information on the company, go to www.yuhepoultry.com