China Fishery continues quarterly growth
Singapore Exchange Mainboard-listed industrial fishing company China Fishery Group Limited reported its results for the first quarter of the financial year ending 28 September 2011, reports http://www.megafishnet.com/ with reference to China Fishery Group.
Group revenue rose 13.4% to US$115.1 million from US$101.4 million in the same period last year. Trawling and Peruvian fishmeal operations accounted for 90.6% and 9.4% of total revenue respectively. In terms of profitability, gross profit rose 26.3% to US$42.7 million due to higher revenues and improvements in operational efficiency in both trawling and fishmeal operations as well as the increased revenue. Net profit rose 7.9% to US$19.7 million, while net profit margin remained relatively stable at 17.1%.
North Pacific trawling operations recorded revenues of US$68.9 million, down 20.7% from US$86.9 million last year, the result of lower selling prices. Selling prices were affected by an increase of global supply of the Group's major catch species. Revenues were also affected by higher sales volume of lower-value fish (whole-round fish) for the West African market.
The Group's Peruvian fishmeal operations recorded a decrease in sales by 18.5% from US$13.3 million to US$10.8 million mainly due to lower carry-over inventories available for sale.
Geographically, the PRC remained the Group's most significant market, accounting for 59.4% of the Group's revenue. West Africa accounted for 30.8% while Europe, Japan & Korea, South East Asia and other markets accounted for the remaining 9.8%. By operations, trawling and Peruvian fishmeal operations accounted for 90.6% and 9.4% of total revenue respectively.
On the balance sheet level, the Group's capital structure improved with net current assets more than doubled in value to US$224.3 million from US$98.0 million as current liabilities dropped significantly following a 4-year club loan facility that the Group entered into in November 2010. Long term debt as a proportion of total borrowings was approximately 90.1% versus 66.8% as at 28 September 2010.
Commenting on the Group's outlook, Group Managing Director Mr Ng Joo Siang said, "We are pleased to achieve another profitable quarter with a healthy increase in overall revenue. With the South Pacific operations in full swing and the fishing fleet deployed and fully utilised in Mauritania during the South Pacific non-fishing season, our higher quota share in Peru from strategic acquisitions, we expect the Group's operations to continue performing to expectation. In addition, the Group has been seeing results from its efforts to improve operational efficiency and utilisation, and we will continue to place emphasis on enhancing efficiency in all areas of our business."
Mr. Ng added, "In exploring options to improve the Group's liquidity position and strengthen its balance sheet, the Group proposed a dual primary listing on the The Stock Exchange of Hong Kong Limited. This additional platform is expected to enhance our access to a wider range of institutional and retail investors and further strengthen our capital base. With a stronger financial position and additional funding, we will be better placed to pursue our business strategy of becoming a significant consolidator in the global fishing industry."