Chinese meat processor Zhongpin yesterday (11 March) posted bumper 2009 profits and sales as the company benefited from moves to increase production capacity throughout the year.
The group reported a 45.2% jump in annual net income to US$45.6m after sales climbed 34.5% to $726m.
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Zhongpin started production in two new pork processing plants and upgraded a third facility in 2009, moves that boosted its 138,000 metric tons to its capacity.
“During 2009, Zhongpin made outstanding progress in executing its long- term growth strategy that focuses on increasing production capacity; broadening awareness and recognition of our well-known brand that is starting to emerge from a regional toward a national market; exploiting sales capabilities by accessing more retail outlets and sales channels; and increasing revenues and net income,” chairman and CEO Xianfu Zhu explained.
“Our return on average assets was down just a half point – 11% in 2009 compared with 11.5% in 2008. We believe this was a major achievement, since we invested aggressively in new production facilities to support our market and sales expansion in 2009.”
In April, Zhongpin will start building a plant for prepared pork products in Tianjin that will have an annual capacity of about 36,000 metric tons. The Tianjin facility will include a new warehouse and distribution center and an R&D centre.
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By GlobalDataIn April, Zhongpin is set to open a new “premium” pork oil production plant in Changge with an annual capacity of about 20,000 metric tons.
Zhongpin is also building three cold storage and distribution centres for chilled and fresh pork and agricultural products. The centres are located adjacent to Zhongpin’s processing facilities in Zhumadian, Anyang, and Luoyang, in China’s Henan province.
