DGAP-Adhoc: Haikui Seafood secures loan of 25 million US dollar and acquires land use rights for new seafood-processing factory

| Source: EQS Group AG
Haikui Seafood AG   / Key word(s): Contract

23.12.2013 17:14

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a company of EQS Group AG.
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Haikui Seafood secures loan of 25 million US dollar and acquires land use
rights for new seafood-processing factory

Frankfurt am Main, December 23, 2013. Haikui Seafood AG has secured a 25.0
million US dollar (approximately 18.5 million Euros) long-term loan from
DEG (Deutsche Investitions- und Entwicklungsgesellschaft) for its wholly
owned subsidiary Fujian Dongshan Haikui Aquatic Products Group Co. Ltd.
Haikui Seafood AG will act as guarantor for the loan.

The annual interest rate of the loan is the applicable 6-month US dollar
LIBOR plus 4 per cent. The loan has a maturity of seven years. According to
the loan repayment schedule, the first of ten equal semi-annual instalment
repayments is due on March 15, 2016.

The purpose of the loan is to contribute to the financing of a new
seafood-processing factory on Dongshan Island, which will have an estimated
total investment amount of approximately 550.0 million Renminbi
(approximately 66.0 million Euros).

The long-term bank loan contributes to aligning Haikui Seafood's financing
structure with its asset structure and helps the company to successfully
pursue its growth strategy. With a total equity position of 156.5 million
Euros and an equity ratio of 97.2 per cent as of September 30, 2013, Haikui
Seafood has a strong debt capacity.

As a first step towards the construction of the new seafood-processing
factory, the Chinese subsidiary of Haikui Seafood is expected to sign an
agreement with the local authorities in Dongshan regarding the purchase of
the required land use rights shortly. The land for the new processing
facility is located in the Dongshan Marine Biotechnology Industrial Park,
Dongshan Island, Fuijan Province, and has a total size of 1,000 mu
(approximately 667,000 square metres). The total purchase price for the
land use rights will amount to approximately 110.0 million Renminbi
(approximately 13.2 million Euros).


Information and Explaination of the Issuer to this News:

'The new loan facilitates the planned expansion of our processing
capacities. This will not only help us achieve our mid-term growth targets
but will also improve our production efficiency. The successful loan
agreement indicates the trust and confidence of DEG in Haikui Seafood and
our Management to deliver value to the stakeholders', says Chen Zhenkui,
CEO of Haikui Seafood.

About Haikui Seafood AG

Haikui Seafood processes fish and seafood for the Chinese and international
markets. Its products range includes frozen or canned fish and seafood,
produced from a large variety of species of raw fish and seafood, including
prawn, crab, various fish species and shellfish as well as cephalopods.
Clients of Haikui Seafood are distributors in China and overseas, located
mainly in Asia, the U.S. and Europe. Haikui Seafood employs on average
around 700 permanent employees and around 1,150 additional temporary
workers in 9M 2013. The company has an annual processing capacity of more
than 34,000 tonnes (output). The processing facilities are located in the
South-East of China on Dongshan Island, Zhangzhou, Fujian Province. Haikui
Seafood operates a streamlined supply chain including self-owned processing
facilities, in-house research and product development capacities as well as
warehousing and cold storage facilities while simultaneously cooperating
closely with raw goods suppliers.

About DEG

DEG (Deutsche Investitions- und Entwicklungsgesellschaft), a subsidiary of
KfW, is one of the largest European development finance institutions for
long-term project and company financing. For more than 50 years, DEG has
been financing and structuring the investments of companies in developing
and transition countries in order to contribute to sustainable progress.

For further information please visit www.haikui-seafood.com or contact

Kirchhoff Consult AG
Anja Ben Lekhal
Phone: +49 (0)40 609 186 55

23.12.2013 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

Language:     English
Company:      Haikui Seafood AG 
              60306 Frankfurt am Main
Phone:        +49 40 60 91 86 - 0
Fax:          +49 40 60 91 86 - 60
E-mail:       haikui@kirchhoff.de
Internet:     www.haikui-seafood.de
ISIN:         DE000A1JH3F9
WKN:          A1JH3F
Listed:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Berlin, Düsseldorf
End of Announcement                             DGAP News-Service