Hong Kong, Aug. 29 - China's largest clear apple juice concentrate exporter China Haisheng Juice Holdings Co. Ltd. today announced its interim results for the six months ended 30 June 2008.
The Group recorded a turnover of approximately RMB 1,107,009,000 million, representing an increase of 28.1% over the previous year; Profit attributable to the equity holders in the period surged by 85% to approximately RMB126,512,000 million on improved margin due to better cost management and basic earnings per share rose by 85.7% to RMB 10.4 cents. The Board does not recommend the payment of an interim dividend.
The Group's production plants are all located in regions of Loess Plateau, Bohai Gulf and Yellow River, the three largest apple sources in the PRC with the richest apply supply. During the review period, the Group acquired the former Sangdong Yuatong Fruit and established Shaanxi Haisheng Fresh Co., Ltd. Qixia Branch with an annual production capacity of 35,000 tons, bringing the Group's total production capacity to 350,000 tones as at 30 June 2008.
Mr. Gao Liang, the founder and chairman of China Haisheng was pleased with the results. "Thanks to the increase in and the average selling prices supported by our high quality products and diversified distribution network, we managed to maintain a strong growth despite a significant increase in the cost of apple procurement due to the short supply in 2007/08 pressing season. We continued to maintain good relationship with our customers who are internationally well-known food and beverages manufacturers.
North America, and Europe and Russia are our core markets, contributing 71.4% and 11.8% of the Group's total sales revenue respectively in the review period. Meanwhile, sales revenue in North America, Japan and South Africa markets increased 75%, 223% and 433% respectively compared to the corresponding period of last year. In addition to further strengthening our foothold in these markets, we also actively explore the potential of emerging markets such as Middle East, India, China and South Korea. Meanwhile, we will strives to make breakthroughs in markets such as Japan and Australia"
The Group will continue to strive to improve its profitability by engaging in other products with high profit margins and expand its production capacity and efficiencies through improving the innovation ability.
"The production of apple aroma and small varieties vegetable and fruit juice products such as peach concentrate and strawberry concentrate which has high profit margin is expected to be our future growth driver. We will enhance the standardization of the regarding production, scalization of output and maximization of profit," Mr. Gao added.
Benefited from the growth of the apple juice concentrate industry, and the benefiting-peasants policy of Chinese government. China Haisheng's management is confident that its business will continue to grow in the future and generate good returns to its shareholders.
