DaChan Food turnover exceeds RMB10 billion

HONG KONG -- DaChan Food (Asia) Limited (SEHK 3999), leading supplier of meat products in China, announced its annual results for the year ended 31 December 2011. As a result, The company maintained growth momentum in its operation results in 2011, with turnover exceeding RMB10 billion, as the price of pork remained at a high level and the price of chicken meat continued to increase. The turnover and gross profit of the processed food segment surged 57% and 48.6% year-on-year respectively.

During the year under review, the DaChan Food (Asia) turnover increased by 17.4% year-on-year to RMB11.2 billion. Gross profit increased from RMB660 million to RMB860 million, representing a year-on-year increase of 30.1%. Meanwhile, profit attributable to equity shareholders of the Company amounted to approximately RMB200 million, representing a significant growth of 79.3% compared to 2010.

Processed food demand

Among all business segments, the processed food business segment continued to maintain its strong growth momentum as it was driven by the rapid development of the group’s branded food business. With the growing trend of urbanisation in China, large-scale supermarkets have become popular destinations for household shopping.

In response to this development, products under DaChan Food's "Sisters' Kitchen" brand have successfully expanded its sales channels to reach a number of international and domestic supermarket chains during the year.

Food safety

In addition, food safety has been emphasised on the agenda of the Chinese government.

Backed by its vertically integrated business model, DaChan Food ensures that all products delivered to its customers are safe and of high quality, making it the first choice for consumers who demand safe and guaranteed products. The processed food business segment recorded a turnover of approximately RMB1.5 billion in 2011, while gross profit rose to approximately RMB180 million, representing year-on-year increases of 57% and 48.6% respectively.

Furthermore, benefiting from the rising price of chicken meat and the expansion of its sales channels, the chicken meat business segment recorded turnover of RMB5.1 billion, representing a 13.5% increase compared with 2010. Thanks to the company's effective cost controls, the gross profit also jumped by 80% to approximately RMB200 million.

On the other hand, the robust development of the livestock industry has fueled the development of the animal feeds industry, and the high-tech functional feed has been widely recognized in the market. This helped DaChan Food to expand its market share during the year. Turnover of the company's feeds business segment increased by 12.5% year-on-year to RMB4.6 billion, while gross profit increased by 12.8% to approximately RMNike Shox Avenue 808