Zhongpin 1Q net income, revenues up

by Meat&Poultry Staff
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NEW YORK – Zhongpin Inc. announced for the first quarter ended March 31, its net income increased 27 percent to $16.9 million in the first quarter 2011 from $13.3 million in the first quarter 2010; basic earnings per share increased 24 percent to $0.47 in the first quarter 2011 from $0.38 in the first quarter 2010 on average basic shares outstanding that were 3% higher; and revenues increased 40 percent to $285.8 million from $204.3 million in the first quarter 2010.

"We will continue to make the investments in the latest improvements in bio-science and product and process technologies to keep our plants, cold-chain logistics and suppliers at the forefront of product quality and safety,” said Xianfu Zhu, chairman and CEO. “Our objective is to continue to lead the industry with the highest product quality – from farm to fork.”

Zhongpin’s new Tianjin facility began operations in January 2010. It has a production capacity of about 100,000 metric tons for chilled and frozen pork. Construction of phase two of the facility, with a production capacity of about 36,000 metric tons for prepared pork products, began last October and should be in operation in the second quarter of 2011.

Approximately $61.5 million is being invested to build a slaughtering and processing plant, low-temperature prepared pork plant, logistics center and research and development center in Nong'an county, Changchun, in the Jilin province of China. This facility will have a production capacity of almost 70,000 metric tons for chilled pork, 25,000 metric tons for frozen pork and 30,000 metric tons for prepared pork products. Construction started in September 2010. The company expects to begin operating the chilled and frozen pork facility in the fourth quarter of 2011 and the prepared pork products facility in the third quarter of 2012.

Zhongpin is also investing about $63.0 million to build a production facility, warehouse and distribution center in Taizhou, Jiangsu province. It will have a production capacity of about 100,000 metric tons for chilled and frozen pork. Of this total, 80 percent will be for chilled pork, including easy-to-cook products, 20 percent for frozen pork and 30,000 metric tons for prepared pork products. Construction began in October 2010. The company expects to begin operating the chilled and frozen pork facility in the third quarter of 2011 and the prepared pork products facility in the first quarter of 2012.

Zhongpin is investing about $58.5 million to build a new production, research and development and training complex in Changge, Henan province. This new facility will have a production capacity of about 100,000 metric tons for prepared pork products. Adjacent to this new facility, the company expects to develop a center for research and development, training and quality control.

As of March 31, Zhongpin had an annual capacity of 563,760 metric tons for chilled and frozen pork, 90,000 tons for prepared pork products and 20,000 tons for pork oil.
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