Haikui Seafood AG / Key word(s): 9-month figures
24.11.2015 08:34
Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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9M results 2015
Haikui Seafood's results affected by enhanced competitive pressure and
adverse market conditions
* Revenue increased to over 100 million Euros
* EBIT amounted to 9.7 million Euros with a still attractive EBIT margin of
9.6 per cent
* Share buyback program successfully completed
* Full-year outlook partly adjusted
Frankfurt am Main, November 24, 2015 - The difficult market environment for
seafood processing companies accompanied by a slower economic growth around
the world as well as structural changes and tough competition in the
Chinese domestic market continued to affect Haikui's business results in
the first nine months of the financial year 2015.
Haikui's revenue increased by 15.0 per cent to 100.6 million Euros in the
first nine months of 2015 (9M 2014: 87.4 million Euros). However, this
increase was mainly due to beneficial foreign exchange rate effects.
Measured in the functional currency RMB, the group's revenue decreased by
4.9 per cent to 693.6 million RMB (9M 2014: 729.1 million RMB). This
decrease was mainly caused by lower sales orders received as a result of
increased selling prices for frozen products and due to the strong
competition, especially from low-cost countries.
With regard to the group's product segments, the following results were
recorded in the first nine months of 2015: Revenue from frozen products
increased by 6.1 per cent to 73.7 million Euros (9M 2014: 69.5 million
Euros). Revenue from canned products grew significantly by 49.9 per cent to
26.8 million Euros (9M 2014: 17.9 million Euros). This gain was mainly due
to increased sales of higher-priced canned abalone products. Nevertheless,
frozen products remained the main revenue driver contributing 73.3 per cent
to the group's total revenue (9M 2014: 79.5 per cent), while canned
products accounted for 26.7 per cent (9M 2014: 20.5 per cent).
Gross profit went up year-on-year by 3.3 per cent to 14.2 million Euros (9M
2014: 13.8 million Euros). However, due to the higher raw material costs
and higher direct labour costs per unit of production which could not be
fully passed on to the market, the gross profit margin decreased by 1.6
percentage points to 14.2 per cent (9M 2014: 15.8 per cent). For the same
reasons as well as due to higher administrative expenses, EBIT slightly
decreased by 2.6 per cent to 9.7 million Euros (9M 2014: 10.0 million
Euros). The same applies to the EBIT margin, which dropped by 1.8
percentage points to 9.6 per cent (9M 2014: 11.4 per cent). As a result,
the net profit for the period declined by 21.7 per cent to 6.0 million
Euros (9M 2014: 7.6 million Euros), resulting in a net profit margin of 5.9
per cent (9M 2014: 8.7 per cent).
Stable financial position
The group's total equity increased by 6.6 per cent from 186.6 million Euros
as at December 31, 2014 to 198.9 million Euros as at September 30, 2015,
mainly due to the increase in retained earnings and the currency
translation reserve. The equity ratio increased from 95.0 per cent as at
December 31, 2014 to 95.3 per cent as at September 30, 2015 providing
Haikui Seafood with a comfortable equity position.
Share buyback program successfully completed
On August 7, 2015, Haikui Seafood AG applied to the Frankfurt Stock
Exchange to revoke the admission of its shares to trading on the regulated
market. The reason for this decision was that the Management Board and
Supervisory Board believe that the benefit of Haikui Seafood AG's stock
market listing no longer justifies the associated expenses. As the
Frankfurt Stock Exchange accepted the application on August 18, 2015 the
delisting will take effect on February 18, 2016.
In this context Haikui implemented a share buyback program. During the
offer period from August 10 to September 15, 2015, a total number of
921,346 shares had been tendered. Consequently, the company now owns
921,346 treasury shares representing 8.97 per cent of the total share
capital while the free float has been reduced to 3.14 per cent. The Company
intends to cancel the shares bought back under the offer by way of a
reduction of the share capital in accordance with the statutory provisions.
Partly adjusted full-year prognosis
The challenging business environment, the competitive environment amidst a
weak global economy, the stringent inspection taken by the Chinese
authorities to inspect the end product quality of Chinese seafood
exporters, the tight supply of certain raw materials and rising direct
labor and production costs will persist and might even become stronger in
the future.
Against this background, the management of Haikui Seafood has partly
adjusted the forecast for the full year 2015 given in the H1 report. The
management now expects revenue in RMB terms for 2015 to decrease by around
5 per cent compared with 2014. The EBIT margin is still expected to be in a
range between 8 and 10 per cent.
The full nine-month report 2015 of Haikui Seafood is available on the
company's website under the following link:
http://www.haikui-seafood.com/investor-relations/publications/reports/
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Information and Explaination of the Issuer to this News:
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 636 permanent
employees and 726 additional temporary workers as of September 30, 2015.
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.
For further information please visit www.haikui-seafood.com or contact
Kirchhoff Consult AG
Anja Ben Lekhal
Phone: +49 (0)40 609 186 55
anja.benlekhal@kirchhoff.de
Disclaimer concerning prognoses
This communication contains forward-looking statements. Forward-looking
statements are statements that are not historical facts instead they
reflect Haikui Seafood's current views and expectations and the assumptions
underlying them about future events. Forward-looking statements are subject
to many risks and uncertainties. If any of such risks and uncertainties
materialise or if the assumptions underlying any of Haikui Seafood's
forward-looking statements are proving to be incorrect, Haikui Seafood's
actual results may be materially different from those expressed or implied
by such forward-looking statements. Haikui Seafood does not intend or
assume any obligation to update these forward-looking statements. Any
forward-looking statement speaks only as of the date on which it is made.
24.11.2015 The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
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Language: English
Company: Haikui Seafood AG
c/o Norton Rose Fulbright, Taunustor 1
60310 Frankfurt am Main
Germany
Phone: +49 40 60 91 86 - 0
Fax: +49 40 60 91 86 - 60
E-mail: alan.gey@haikui.com.cn,anja.benlekhal@kirchhoff.de
Internet: www.haikui-seafood.de
ISIN: DE000A1JH3F9
WKN: A1JH3F
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf
End of Announcement DGAP News-Service
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DGAP-Adhoc: Haikui Seafood's results affected by enhanced competitive pressure and adverse market conditions
| Source: EQS Group AG