Attached files
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| 8-K - ZHONGPIN INC. | v171050_8k.htm |
Exhibit
99.1
For
Immediate Release
Zhongpin
Provides Guidance for the Year 2010
CHANGGE
and BEIJING, China, January 11, 2010 /PRNewswire-FirstCall/ -- Zhongpin Inc.
(“Zhongpin” or “the company”, Nasdaq: HOGS), a leading meat and food processing
company in the People's Republic of China (“China”), today provided guidance for
the year ending December 31, 2010.
Mr.
Warren Wang, Zhongpin’s Chief Financial Officer, said, “For the year 2010,
Zhongpin’s sales revenues are currently expected to be within a range of $900
million to $940 million, with gross profit within the range of $106 million to
$115 million and net income within the range of $52 million to $57 million. The
resulting diluted earnings per share for the year 2010 is currently expected to
be within the range of $1.49 to $1.64 per share.”
This
guidance is based on several assumptions and strategies that
include:
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Continuation
of China’s policies designed to stimulate domestic consumption and
economic growth;
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Higher
average pork prices in China’s pork industry in 2010 than in
2009;
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Higher
sales volume of our pork products, led by chilled pork products, followed
by prepared pork products and frozen pork
products;
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A
higher percentage of sales from our higher-margin chilled pork and
prepared pork products;
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Average
capacity utilization of about 75 percent for pork
products;
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Increasing
distribution efficiencies from expansion of our cold-chain logistics
system and service areas;
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Growing
awareness of the Zhongpin brand in regional markets and emerging brand
awareness across China; and
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Continuation
of the Chinese government’s support and subsidies for producers of
agricultural products, such as
Zhongpin.
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Zhongpin
believes that China’s food processing industry will continue to consolidate,
which may result in higher market shares for our main competitors. However, we
believe Zhongpin is equipped to meet the challenge of increasing competition and
that our guidance for 2010 can be achieved.
About
Zhongpin
Zhongpin
Inc. is a meat and food processing company that specializes in pork and pork
products, vegetables, and fruits in China. Its distribution network in China
covers 20 provinces plus Beijing, Shanghai, Tianjin, and Chongqing and includes
more than 3,000 retail outlets. Zhongpin's export markets include the European
Union and Southeast Asia. For more information about Zhongpin, please visit
Zhongpin's website at http://www.zpfood.com.
Safe
harbor statement
The
statements in this news release regarding our guidance for the year 2010 and the
underlying assumptions and strategies are forward-looking statements made under
the safe harbor provisions of the Private Securities Litigation Reform Act of
1995. Zhongpin has based these forward-looking statements largely on its current
expectations and projections.
Forward-looking
statements involve inherent risks and uncertainties that could cause actual
results to differ materially from those in the forward-looking statements. For
example, many of Zhongpin’s assumptions about China’s economy, the food products
industry, the average price of pork products in China, and other factors may
turn out to be incorrect. Please see Zhongpin’s filings with the United States
Securities and Exchange Commission (www.sec.gov or www.zpfood.com) for more
information about the risks and uncertainties associated with investing in
Zhongpin.
You are
cautioned not to place undue reliance on those forward-looking statements, which
are qualified in their entirety by this cautionary statement. All information
provided in this news release is as of the date of this news release. Zhongpin
does not undertake any obligation to update any forward-looking statement as a
result of new information, future events, or otherwise except as required by
law.
For more
information, please contact:
Zhongpin
Inc.
Mr.
Sterling Song (English and Chinese)
Investor
Relations Manager
Telephone
+86-10-8286-1788 extension 101 in Beijing
ir@zhongpin.com
Mr.
Warren (Feng) Wang (English and Chinese)
Chief
Financial Officer
Telephone
+86-10-8286-1788 extension 104 in Beijing
warren.wang@zhongpin.com
Christensen
Mr.
Yuanyuan Chen (English and Chinese)
Mobile
+86-139-2337-7882 in Beijing
ychen@christensenir.com
Mr. Tom
Myers (English)
Mobile
+86-139-1141-3520 in Beijing
tmyers@christensenir.com
Ms. Kathy
Li (English and Chinese)
Telephone
+1-212-618-1978 in the USA
kli@christensenir.com
SOURCE
Zhongpin Inc.
www.zpfood.com