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Energroup Holdings Corporation ('Chuming') Reports Third Quarter 2008 Financial ResultsDALIAN, China, Nov. 20 /PRNewswire-FirstCall/ -- Energroup Holdings Corporation (OTC Bulletin Board: ENHD), through its direct and indirect subsidiaries known as "Chuming", a premier processor and supplier of fresh, frozen and processed food products inDalian, China, reported the Company's financial results for the third quarter ended September 30, 2008.
-- Third quarter total revenues increased 52.8% to $53.7 million
-- Third quarter net income increased 72.5% to $4.3 million, with EPS of
$0.20 for the quarter
-- For the first nine months, revenues increased 56.4% to $140.3 million
-- Nine-month net income increased 70.8% to $14.2 million with EPS of
$0.67
2008 Third Quarter Financial Results Total revenues increased 52.8% million, or approximately Chuming's gains in revenues were driven mostly by increases in supermarket
locations market that market fresh, refrigerated, Chuming(R)-branded pork
products in deli cases. Year to date, the Company has increased the number
of supermarket retail points 90% to 186 while sales in the channel for the
third quarter alone increased "We have found supermarkets to be the most profitable and cost efficient channel to market our products," stated Philips Zhang, CFO of the Company. "While some additional credit terms were necessary to maintain our competitive edge, the profits on resale are the highest in our product categories. Due to the size of the orders to supermarkets, efficiencies in order processing help us maintain overhead costs and strong earnings to our bottom line." Zhang concluded. Cost of goods sold was Cost increased the most for grade-1 and grade-2 pigs, the premium grades of pigs Chuming uses. The Company only uses the highest grade of meat to maintain its brand and commitment to quality. Per kilogram prices in the third quarter of 2008 for live pigs were on average 24.3% higher than the third quarter of 2007. Within each of the three quarters of 2008, the cost of inputs increased 107% for the first quarter, 67% for the second quarter and 24% for the third quarter, compared to the same period in 2007. Although the prices of live pigs have been volatile in the past years, management currently projects a 10% per year increase in the average price per kilogram for live pigs during the next several years and is implementing price increases to its customer base in an effort to return to previous profit margin levels. Selling expenses totaled General and administrative expenses totaled Operating income and operating margins for the quarter were Other expense for the quarter was approximately Net income for the three months ended September 30, 2008 was Nine-Month Results During the nine months ended September 30, 2008, Chuming sold Operating expenses for the nine months ended September 30, 2008 were Earnings per diluted share totaled "The pork market inChina continues to demonstrate a resiliency to both
inflationary concerns and changes inChina's GDP forecast." Chairman Financial Condition Cash and cash equivalents by the end of the third quarter were About Chuming We are aNevada corporation quoted on the OTC Bulletin Board, with our
operations based in theLiaoning Province inNortheastern China. Chuming is a
leading regional producer and distributor of fresh and prepared meat products
inNortheastern China which has a population of approximately 108 million. We
operate through our subsidiaries, including Forward Looking Statements This press release contains forward-looking information and statements. Forward-looking statements are statements that are not historical facts, including targeted net income. These statements can be identified by the use of forward-looking terminology such as "believe," "expect," "may," "will," "should," "project," "plan," "seek," "intend," or "anticipate" or the negative thereof or comparable terminology, and statements which may include discussions of strategy, and statements about industry trends future performance, operations and products of the entities referred to above. Our actual results may differ materially depending on a number of risk factors including, but not limited to, our ability to timely and accurately complete orders for our products, our dependence on a limited number of major customers, political and economic conditions within the PRC, our ability to expand and grow our distribution channels, general economic conditions which affect consumer demand for our products, the effect of terrorist acts, or the threat thereof, on consumer confidence and spending, acceptance in the marketplace of our new products and changes in consumer preferences, foreign currency exchange rate fluctuations, our ability to identify and successfully execute cost control initiatives, and other risks outlined above and in the "risk factors" described in our other public filings. All forward-looking statements are expressly qualified in their entirety by this Cautionary Statement and the risks factors detailed in our reports filed with the Securities and Exchange Commission. We undertake no duty to revise or update any forward-looking statements to reflect events or circumstances after the date of this release.
Energroup Holdings Corporation
Consolidated Balance Sheets
As of September 30, 2008 and December 31, 2007
(Stated in US Dollars)
At At
September 30, December 31,
ASSETS 2008 2007
Cash $11,672,377 $14,031,851
Restricted Cash 2,234,387 4,250,000
Accounts Receivable 25,429,400 622,433
Other Receivable 1,888,165 1,068,939
Related Party Receivable 6,244,256 3,964,357
Inventory 6,483,137 2,916,016
Purchase Deposit 1,410,121 267,807
Prepaid Expenses 50,328 46,401
Prepaid Taxes 1,224,020 185,419
Deferred Tax Asset 654,946 613,844
Total current assets 57,291,137 27,966,967
Property, Plant & Equipment, net 25,450,634 24,836,496
Land Use Rights, net 13,500,699 12,855,980
Construction in Progress 1,019,169 927,866
Other Assets 93,154 32,619
TOTAL ASSETS $97,354,793 $66,619,928
LIABILITIES
Bank Loans & Notes $6,418,579 $7,383,095
Accounts Payable 14,276,813 3,779,274
Taxes Payable 2,749,160 1,677,194
Other Payable 3,477,954 1,471,381
Accrued Liabilities 3,894,780 3,347,013
Customer Deposits 2,872,226 24,161
Total current liabilities 33,689,511 17,682,118
TOTAL LIABILITIES $33,689,511 $17,682,118
STOCKHOLDERS' EQUITY
Preferred Stock - $0.001 par value
10,000,000 shares authorized; 0
shares issued & outstanding at
September 30, 2008 and December 31,
2007, respectively. -- --
Common Stock $0.001 par value
21,739,130 shares authorized;
21,136,392 shares issued &
outstanding at September 30, 2008
and December 31, 2007, respectively. $21,136 $21,136
Additional Paid in Capital 15,440,043 15,440,043
Statutory Reserve 1,729,863 751,444
Retained Earnings 42,962,290 29,764,236
Accumulated Other Comprehensive Income 3,511,950 2,960,951
TOTAL STOCKHOLDERS' EQUITY 62,665,282 48,937,810
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $97,354,793 $66,619,928
Energroup Holdings Corporation
Consolidated Statements of Income
for the three and nine months ended September 30, 2008 and 2007
(Stated in US Dollars)
3 months 3 months 9 months 9 months
ended ended ended ended
September 30, September 30, September 30, September 30,
2008 2007 2008 2007
Sales $53,725,596 $35,160,526 $140,309,218 $89,718,841
Cost of Sales 47,254,631 29,430,153 120,329,483 74,966,451
Gross Profit 6,470,965 5,730,373 19,979,735 14,752,390
Selling Expenses 878,893 1,597,626 3,463,947 3,397,046
General &
Administrative
Expenses 734,976 459,975 1,881,138 1,147,488
Operating Income 4,857,096 3,672,772 14,634,650 10,207,856
Other Income 1,036,941 806 1,420,060 7,810
Interest Income (356,596) -- 279,097 --
Other Expenses (413,264) (40,524) (514,000) (78,354)
Interest Expense (587,118) (378,580) (1,194,197) (1,089,221)
Earnings before Tax 4,537,058 3,254,474 14,625,611 9,048,091
Income Tax 216,770 749,504 449,138 749,504
Net Income $4,320,288 $2,504,970 $14,176,473 $8,298,587
Earnings Per Share
Basic $0.25 $0.19 $0.82 $0.62
Diluted $0.20 $0.15 $0.67 $0.48
Weighted Average
Shares Outstanding
Basic 17,272,756 13,409,120 17,272,756 13,409,120
Diluted 21,182,756 17,272,756 21,182,756 17,272,756
Comprehensive Income
Net Income $4,320,288 $2,504,970 $14,176,473 $8,298,587
Other Comprehensive
Income (911,156) 927,231 550,999 1,174,740
Total Comprehensive
Income $3,409,132 $3,432,201 $14,727,472 $9,473,327
Energroup Holdings Corporation
Consolidated Statements of Cash Flows
for the three and nine months ended September 30, 2008 and 2007
(Stated in US Dollars)
3 months 3 months
ended ended
September 30, September 30,
2008 2007
Cash Flow from Operating Activities
Net Income $4,320,288 $2,504,970
Amortization 74,052 32,949
Depreciation 576,203 450,002
(Increase)/Decrease in Accounts
& Other Receivables (10,487,495) 1,636,735
(Increase)/Decrease in
Inventory & Purchase Deposits (1,987,668) 195,202
(Increase) in Prepaid
Taxes & Expenses (934,281) 28,544
Increase/(Decrease) in
Accounts, Taxes & Other Payables 8,298,021 (8,424,131)
Increase/(Decrease) in
Accrued Liabilities 394,292 232,734
Increase in Customer Deposits 1,177,925 2,216,740
Cash Sourced/(Used) in
Operating Activities 1,431,337 (1,126,255)
Cash Flows from Investing Activities
Funds released from/(interest
earned in) Escrow Account (3,720) --
Purchases of Plant & Equipment (2,042,604) (148,353)
Purchase of Land Use Rights (904,031) 2,705
Payments for Deposits (227) --
Cash Sourced/(Used) in
Investing Activities (2,950,582) (145,648)
Cash Flows from Financing Activities
Proceeds from Bank Borrowings 15,004,489 1,219,923
Repayment of Bank Loans (14,988,890) (9,140)
Cash Sourced/(Used) in
Financing Activities 15,599 1,210,783
Net Increase/(Decrease)
in Cash & Cash
Equivalents for the Year (1,503,647) (61,120)
Effect of Currency Translation 1,905,294 38,869
Cash & Cash Equivalents
at Beginning of Year 11,270,730 2,479,685
Cash & Cash Equivalents
at End of Year $11,672,377 $2,457,434
9 months 9 months
ended ended
September 30, September 30,
2008 2007
Cash Flow from Operating Activities
Net Income $14,176,473 $8,298,587
Amortization 259,312 97,479
Depreciation 1,983,977 1,370,225
(Increase)/Decrease in
Accounts & Other Receivables (27,906,092) (11,484,507)
(Increase)/Decrease in
Inventory & Purchase Deposits (4,709,434) 1,136,515
(Increase) in Prepaid
Taxes & Expenses (1,083,731) (50,535)
Increase/(Decrease) in
Accounts, Taxes & Other Payables 13,576,079 1,424,545
Increase/(Decrease) in
Accrued Liabilities 547,767 546,095
Increase in Customer Deposits 2,848,064 2,196,553
Cash Sourced/(Used) in
Operating Activities (307,586) 3,534,957
Cash Flows from Investing Activities
Funds released from/(interest
earned in) Escrow Account 2,015,613 --
Purchases of Plant & Equipment (2,689,418) (847,063)
Purchase of Land Use Rights (904,031) (3,330,801)
Payments for Deposits (60,535) --
Cash Sourced/(Used) in
Investing Activities (1,638,371) (4,177,864)
Cash Flows from Financing Activities
Proceeds from Bank Borrowings 6,418,579 1,219,923
Repayment of Bank Loans (7,383,095) (1,302,803)
Cash Sourced/(Used) in
Financing Activities (964,516) (82,880)
Net Increase/(Decrease)
in Cash & Cash
Equivalents for the Year (2,910,473) (725,787)
Effect of Currency Translation 550,999 107,434
Cash & Cash Equivalents
at Beginning of Year 14,031,851 3,075,787
Cash & Cash Equivalents
at End of Year $11,672,377 $2,457,434
SOURCE Energroup Holdings Corporation Tags: ,FOD,OTC,AGR,ERN,ENHD-Q3-ERN _ _     Is your favorite bookmark site missing? Ask for it. |
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