Sen Yu International Holdings Inc. Reports Higher Revenues and Net Income

0

Source: Marketwire

NEW YORK, NY -- (Marketwire) -- 02/14/11 -- Sen Yu International Holdings, Inc. (OTCBB: CSWG) (OTCQB: CSWG), a leading producer and distributor of breeding and commercial hogs in the People's Republic of China, today reported higher revenues and net income for its second quarter and six months ended December 31, 2010.

Quarter and six months ended December 31, 2010 Highlights

  • Net revenues increased 26% to $29.1 million for the quarter ended December 31, 2010 from $22.99 million for the same period ended December 31, 2009
  • Net revenues increased 17% to $52.6 million for the six months ended December 31, 2010 from $44.9 million for the same period ended December 31, 2009
  • Gross profit increased 32% to $7.03 million for the quarter ended December 31, 2010 from $5.32 million for the quarter ended December 31, 2009
  • Gross profit increased 26% to $12.37 million for the six months ended December 31, 2010 from $9.81 million for the six months ended December 31, 2009
  • Net income, net of change in fair value of warrants, increased 34% to $5.64 million for the quarter ended December 31, 2010 from $4.21 million for the quarter ended December 31, 2009.
  • Net income, net of change in fair value of warrants, increased 20% to $9.34 million for the six months ended December 31, 2010 from $7.77 million for the six months ended December 31, 2009.
  • Diluted earnings per common share increased 22% to $0.44 per share for the quarter ended December 31, 2010 from $0.36 per share for the same period ended December 31, 2009
  • Diluted earnings per common share decreased 50% to $0.67 per share for the six months ended December 31, 2010 from $1.33 per share for the same period ended December 31, 2009
  • Net revenues increased $6.08 million or 26% to $29.08 million for the quarter ended December 31, 2010 from $22.99 million for the same period ended December 31, 2009. Net revenues increased $7.75 million or 17% to $52.64 million for the six months ended December 31, 2010 from $44.89 million for the same period ended December 31, 2009. The increase in net revenues resulted from increased orders from our major customers, Beijing Dahongmen and Beijing Fifth Meat Factory. Hog sales increased to 154,389 heads for the quarter ended December 31, 2010 from 120,287 heads for the period ended December 31, 2009. Hog sales increased to 288,950 heads for the six months ended December 31, 2010 from 241,913 heads for the period ended December 31, 2009. Net income, net of change in fair value of warrants, increased $1.43 million or 34% to $5.64 million for the quarter ended December 31, 2010 from $4.21 million for the quarter ended December 31, 2009. Net income, net of change in fair value of warrants, increased $1.57 million or 20% to $9.34 million for the six months ended December 31, 2010 from $7.77 million for the six months ended December 31, 2009, mainly due to the higher revenues and continuing control over expenses. However, general and administrative expenses increased by approximately $280,604 or 121%, for the quarter ended December 31, 2010 from the period ended December 31, 2009. General and administrative expenses increased by approximately $698,257 or 233%, for the six months ended December 31, 2010 from the period ended December 31, 2009, principally due to the payment of investor relation related charges and professional fees. Diluted earnings per share increased 22% to $0.44 per share for the quarter ended December 31, 2010 from $0.36 per share for the same period ended December 31, 2009, mainly due to the change in fair value of warrants of 5.57 million recorded as other income during the period ended December 31, 2010 from the quarter ended December 31, 2009. Diluted earnings per share decreased 50% to $0.67 per share for the six months ended December 31, 2010 from $1.33 per share for the same period ended December 31, 2009, mainly due to an 81% increase in diluted common shares outstanding during the six month period ended December 31, 2010 from the same period ended December 31, 2009.

Revenue from commercial hogs was up $5.81 million or 25% to $28.81 million for the quarter ended December 31, 2010 from $22.99 million for the quarter ended December 31, 2009. Revenue from commercial hogs was up $7.58 million, or 17%, to $52.15 million for the six months ended December 31, 2010 from $44.57 million for the six months ended December 31, 2009. Revenues from other hogs increased from $1,619 for the quarter ended December 31, 2009 to $271,343 for the same three month period ended December 31, 2010. Revenues from other hogs increased from $323,932 for the six months ended December 31, 2009 to $495,612 for the same six month period ended December 31, 2010. Commercial hogs refer to the hogs purchased from Wang Da farmers. Other hogs refer to hogs raised in the Company's own breeding facilities. The increase in the commercial hog product line was primarily attributable to the Company's policy of committing all of its available cash resources to the commercial hog market.

Gross profit margin increased by 32% to 24.18% for the quarter ended December 31, 2010 from 23.13% for the same period ended December 31, 2009 on higher unit margin. Gross profit margin increased by 26% to 23.5% for the six months ended December 31, 2010 from 21.85% for the same period ended December 31, 2009 on higher unit margin. The Company's income from operations increased to $5.70 million for the quarter ended December 31, 2010 from $4.19 for the same period ended December 31, 2009. The Company's income from operations increased to $9.47 million for the six months ended December 31, 2010 from $7.66 for the same period ended December 31, 2009.

Total other income increased $5,502,420 to $5,503,477 for the three months ended December 31, 2010 from $1,057 for the quarter ended December 31, 2009, mainly due to a change in the fair value of warrants of $5.571 million recorded as other income. Total other income increased $7,781,473 to $7,776,842 for the six months ended December 31, 2010 from other expense of $4,631 for the six months ended December 31, 2009, also mainly due to a change in fair value of warrants of $7.92 million recorded as other income.

As a result, the Company's net income, net of change in fair value of warrants, increased $1.43 million, or 34%, for the three months ended December 31, 2010, compared to $5.64 million from $4.21 million for the same period ended December 31, 2009. The Company's net income, net of change in fair value of warrants, increased $1.57 million or 20% for the six months ended December 31, 2010, compared to $9.34 million from $7.77 million for the same period ended December 31, 2009.

As of December 31, 2010, 2010 there was an advance to Wang Da of $32.44 million. In order to raise quality commercial hogs, and control the quality of feeding materials and procedures, the Company entered into a cooperation agreement with Wang Da, its major feedstuff supplier, to provide Wang Da's farmers with fodder to raise their commercial hogs. The supplier offsets the advances from the Company once it delivers commercial hogs to the Company.

The Company's cash outstanding for the period ended December 31, 2010 was $14.95 million.

The Company's current liability and total liability for the period ended December 31, 2010 was $9.88 million. As of December 31, 2010, there were derivative liability warrants of $5.74 million.

About Sen Yu International, Inc.

Based in Northeast China, Sen Yu International, Inc. (OTCBB: CSWG) (OTCQB: CSWG) is a leading producer and distributor of breeding and commercial hogs engaged in the research, development and sale of breeding stock of swine and the sale of their mature offspring in the PRC.

Cautionary Note Regarding Forward Looking Statements

Certain statements in this release concerning our future growth prospects are 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. Such statements may include, without limitation, statements with respect to the Company's plans, objectives, projections, beliefs, expectations and intentions and other statements identified by words such as 'guidance,' 'projects,' 'may,' 'could,' 'would,' 'should,' 'believe,' 'expect,' 'anticipate,' 'estimate,' 'intend,' 'plan,' or similar expressions. These statements are based upon the current beliefs and expectations of the Company's management and are subject to significant risks and uncertainties (many of which are beyond the Company's control)., including, but are not limited to, risks and uncertainties regarding the success of our investments, risks and uncertainties regarding fluctuations in earnings, our ability to sustain our previous levels of profitability including on account of our ability to manage growth, intense competition, wage increases in China, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, our ability to successfully complete and integrate potential acquisitions, withdrawal of governmental fiscal incentives, political instability and regional conflicts and legal restrictions on raising capital or acquiring companies outside China. Additional risks that could affect our future operating results are more fully described in our filings with United States Securities and Exchange Commission. These filings are available at www.sec.gov.

We may, from time to time, make additional written and oral forward-looking statements, including statements contained in our filings with the Securities and Exchange Commission and our reports to shareholders. We do not undertake to update any forward-looking statements that may be made from time to time by or on our behalf.

Customer comments

No comments were found for Sen Yu International Holdings Inc. Reports Higher Revenues and Net Income . Be the first to comment!