CHINA – Zhongpin Achieves Double-Digit Growth in Revenue – May 05, 2011

CHINA – Zhongpin Inc has published its 2011 Proxy Statement and its Chairman’s annual letter, which includes the announcement of double-digit growth in revenues, net income and earnings per share in 2010.

Zhongpin Inc., a leading meat and food processing company in the People’s Republic of China, has announced that its 2011 proxy statement and Chairman’s annual letter to shareholders are available in the investor relations section of its web site.

The Chairman’s letter to shareholders is available in the 2010 annual report to shareholders. Zhongpin is following the US Securities and Exchange Commission’s rules for ‘notice and access’ of annual meeting related materials, and making its 2011 proxy statement and 2010 annual report to shareholders available to shareholders at a specific web site for electronic voting, the address of which is being mailed to shareholders of record as of the close of business on 20 April 2011.

Zhongpin’s annual meeting of stockholders will be held at its representative office located at Room 605A, Tower A, Raycom Info Tech Park, No. 2 Kexueyuan South Road, Haidian District, Beijing, People’s Republic of China 100190, on 15 June 2011, beginning at 10:00 a.m. local time.

In the letter to shareholders, Mr Xianfu Zhu, Chairman, President and Chief Executive Officer of Zhongpin Inc., wrote: ‘In fiscal 2010, we marked the third anniversary of our NASDAQ listing by presiding over the opening bell ceremony in New York’s Times Square. In addition to this symbolic milestone, we made substantial progress in an ongoing programme of business expansion that is fundamental to our strategy of becoming a dominant national brand in pork and pork products. Our double-digit growth in revenues, net income and earnings per share in 2010 reflected the impact of added capacity as well as a rebalancing of our product lines to reflect the increasingly diversified demands of Chinese consumers.’

Information ThePigSite News Desk

CHINA – Zhongpin Secures Finance for Growth – April 19, 2011

CHINA – Zhongpin and China Construction Bank have signed a strategic cooperation agreement.

Zhongpin Inc., a leading meat and food processing company in the People’s Republic of China, has announced the signing of a strategic cooperation agreement with China Construction Bank.

Under the Agreement, China Construction Bank, Henan Branch will provide approximately RMB10 billion in loans and financial services to assist the company in its growth.

Xianfu Zhu, Chairman and CEO of Zhongpin, said: “We are gratified and honoured that China Construction Bank, one of the largest state-owned banks in China, is showing its confidence in our operations and faith in our growth potential by lending its substantial financial support to our business.

“Despite some issues affecting our industry, Zhongpin’s operational performance benefited from the ‘clenbuterol pork scandal’ through increased sales volumes and additional clients.

“Coming on the heels of our successful follow-on equity offering, this substantial vote of confidence from China Construction Bank gives us great comfort as we continue to invest to grow and expand our business and market share.”

Information ThePigSite News Desk

Zhongpin Inc., a leading meat and food processing company in the People’s Republic of China, announced it would begin production in its new chilled and frozen pork plant in Tianjin on January 20, 2010.

Zhongpin’s construction of its new chilled and frozen pork processing plant in Tianjin has been accelerated. The new facility will begin initial pork production on January 20. When all the construction phases are completed in 2010, the Tianjin plant will have an annual capacity of 100,000 metric tons for chilled and frozen pork.

Mr. Xianfu Zhu, Chairman and CEO of Zhongpin, said, “We are very pleased that our new pork plant in Tianjin will begin producing in mid January, ahead of schedule, which will help satisfy the nation’s surging demand for chilled and frozen pork during the peak season of the Chinese New Year and Spring Festival, which in 2010 runs from February 14 through February 28 and is also celebrated before and after those dates.

Good market share

We are confident that our high product quality, good retail locations, and dependable pork supply will please our customers in Tianjin, Beijing, and the other markets in northern China who will be served by the new Tianjin plant. We already serve these markets, and our new plant will guarantee better service and broader market coverage. Our timing should give us good market share gains as we expand our presence in this important high-growth region.”

Under China’s five-year plan for 2006 though 2010, the Tianjin Binhai New Area is becoming the country’s third growth-and-development region for the next two decades, just as the Pearl River Delta and Yangtze River Delta regions grew in the past two decades. The government’s support, incentives, and direct investment in infrastructure in the Tianjin Binhai New Area will create new growth for both China’s northern region and its national economy.

In addition, Tianjin serves as the land logistics center and ocean shipping port for much of northern China, so Tianjin, and Zhongpin, will benefit directly from the growth in the region.

China expects its national economy to grow about 9 percent in 2010. That higher growth should help enable higher pork consumption and give Zhongpin additional support for its market expansions.

Mr. Zhu continued, “Our new Tianjin plant will not only serve the northern China market, it also serves another function. In locating, designing, engineering, and constructing the plant and our regional cold-chain logistics network, we have focused on creating the best master template for our future plants and distribution networks. It incorporates all the knowledge and wisdom we have about how to produce and distribute the most outstanding and safest pork products at the most cost-effective prices.

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China: Zhongpin, a meat and food processing company has reported higher revenues, net income, and diluted earnings per share for the third quarter of 2009

Zhongpin also reduced its guidance for the full year 2009 because, even though Zhongpin’s sales volume in the third quarter 2009 achieved a record high, pork prices in China are currently not increasing.

Mr. Xianfu Zhu, Chairman and Chief Executive Officer of Zhongpin Inc., said, “Our operating and financial performance in the third quarter was encouraging, with higher tonnage on somewhat lower average prices compared with the third quarter of 2008.

“Prices for hog and pork products began to increase in June, continued at higher levels in July and early August, then stabilised at those somewhat higher prices during the second half of the third quarter.

“In the early part of the fourth quarter this year, we have seen only modest changes in hog and pork prices. Because we now believe that pork price increases in the fourth quarter are likely to be less than our previous expectations, we have prudently reduced our guidance for the full year 2009.”

Pricing and tonnage
Based on Zhongpin’s results, average hog and pork prices per metric ton increased sequentially about 14.8 percent in the third quarter from the second quarter of 2009, primarily due to China’s purchases for its national pork reserves, which helped to bring the price of hogs above the breakeven point for farmers. The government’s purchasing policy is based on the relationship of the price of hogs to the price of corn, which is the principal hog feed. The government authorized certain qualified enterprises, including Zhongpin, to acquire hogs and to slaughter, process and stock them as frozen pork.

Market and capacity expansions continue
Mr. Zhu continued, “This year and next we are continuing to implement our strategic plan to sustain the growth we have experienced in the last five years.

“Through 2010, we expect to expand our distribution channels and develop new markets. Through our aggressive marketing campaign, we also expect to increase our brand awareness, customer loyalty, and sales. We are further streamlining our supply chain to create a unified, safe and efficient cold- chain logistics system.”

Report of Pigprogress.net

Zhongpin website: http://www.zpfood.com/