YuanShengTai Dairy Farm Limited Announces 2014 Interim Results, Net Profit Surged 150.1% to RMB249.1 Million

HONG KONG, Aug. 21, 2014 /PRNewswire/ —

  • Revenue Increased by 44.4% to RMB556.0 Million
  • Net Profit Surged 150.1% to RMB249.1 Million
  • Basic Earnings per Share Increased by 61.9%

* * * * * * * * * * *

  • Continuous Expansion in Overall Herd Size
  • Increase in Production and Sales Volume
  • Benefited from Long-term National Policy
  • Capture Business Development Opportunities

* * * * * * * * * * *

Financial Highlights

For the Year Ended 30 June (RMB MM)

2014

(Unaudited)

2013

Changes

Revenue

556.0

385.1

+44.4%

Gross profit

260.6

150.5

+73.2%

Gross profit margin

46.9%

39.1%

+7.8ppt

Net Profit

249.1

99.6

+150.1%

Basic Earnings per Share

6.8 cents

4.2 cents

+61.9%

YuanShengTai Dairy Farm Limited (“YuanShengTai” or the “Company” and, together with its subsidiaries, the “Group”) (Stock Code: 1431), a leading dairy farming company in China, reported a revenue of RMB556.0 million for six month ended 30 June 2014 (the “period”), up 44.4% (1H2013: RMB385.1 million). The increase was attributable to the increase in the production of raw milk while gross  profit margin increased by 7.8 percentage points to 46.9% (1H2013: 39.1%). During the period, net profit surged by 150.1% to RMB249.1 million (1H2013: RMB99.6 million) with basic earnings per share of approximately RMB6.8 cents (1H2013: RMB4.2 cents).

During the period, benefited from the rising average price of high-quality raw milk and continuous expansion in overall herd size which led to the increase in production, the Group’s business recorded a significant growth. In 1H2014, the sales volume reached 105,640 tons, representing a strong growth of 24.2% (1H2013: 85,079 tons).

Mr. Zhao Hongliang, Executive Director and Chairman of YuanShengTai, said, “The Chinese government has implemented a number of policies to support the development of large-scale farms at national and regional levels in the first half of 2014, including tax incentive and government subsidy for the reconstruction and expansion of standardized management of large-scale farms, which contributed to the transition from extensive farming to standardized large-scale farming. Benefited from the national policy and the increasing demand for high quality raw milk, we are confident toward the long-term business development of the Group. Looking forward, the Group will capture the opportunities in developing China’s dairy products industry, especially the high-end raw milk industry, to maintain a sustainable business growth. The Group dedicated to becoming a national leading supplier of premium raw milk in order to maximize returns to our shareholders.”

Business Review

As the leading dairy farming company in China, YuanShengTai is dedicated to production and sales of premium raw milk. During the period, the number of dairy cows across all four of YuanShengTai’s dairy farms increased from 40,396 as of 31 December 2013 to 42,836 as of 30 June 2014. The total number of milkable cows increased from 21,544 for 2013 to 24,505 for the first half of 2014. The increase in the number of matured milkable cows in herd has enabled the Group to produce more raw milk. During the period, the average annual milk yield per cow was 9.38 tons, representing an increase of 4.2% (1H2013: 9.0 tons). It is expected that the average milk yield per cow will further increase with the maturity of the farms and a more balanced age group of herd.

Due to the rising demand for high quality raw milk, the average selling price of the Group’s quality raw milk increased 16.3% from RMB4,527 per ton in 1H2013 to RMB5,263 per ton in 1H2014.

During the period, the Group maintained long-term and stable relationships with customers including the four leading dairy products manufacturers in China namely Feihe Dairy Group, Mengniu Group, Bright dairy Group and Yili Group. Feihe and Mengniu have been purchasing premium raw milk from the Group for their production of high-end dairy products since the commencement of the Company.

YuanShengTai has been exploring the development of selenium-rich raw milk with certain research institutions in order to increase the value of the products and thus meet the user’s demand for raw milk with superior quality. The Group will further cooperate with the research institutions, and after satisfaction of relevant tests, the selenium-rich raw milk can be put into commercial production.

Prospects

Looking ahead, the continuous rise in per capita income and consumption levels of residents in the PRC and their growing concerns about health will continue to increase demand for high quality raw milk. The strengthened regulations enforced by relevant regulatory authorities help to promote integration of the industry, and will also be beneficial to the growth of market share for enterprises producing high quality raw milk. Besides, with the Chinese government’s easing measures on the ”One Child Policy”, the space for the development of dairy products industry will be further expanded, creating favorable opportunities for continuous growth of the Group.

With advanced herd management techniques, a large scale of herd, privileged geographic environment and favorable government support policies, the Group will further expand the business scale of its super large dairy farms. The Kedong Yongjin Farm, which will have an actual designed capacity of 12,000 dairy cows, is under construction and will be put into service in the fourth quarter of 2014. The construction of Baiquan Farm, which will have an actual designed capacity of 15,000 dairy cows, is scheduled to commence in the second half of 2014. It is expected to be in service in the fourth quarter of 2015. In addition, the Group is planning to build another three farms in the Songnen Plain in the next three years, two of which will be named the Keshan Farm and the Gannan Farm, with a view to replicating the business model of operating mega scale dairy farm. Among these new farms under construction, some of them will be established as organic dairy farms in the future. As scheduled, the Group will increase its total herd size to 100,000 by 2017. Fueled by the expansion of the Group’s business scale, the milk production and sales volume are anticipated to experience further increase, while the operational efficiency will be improved and the management of dairy farms will be optimized. The Group’s advantage in terms of economies of scale is expected to be consolidated as a result of these favourable developments.

The Group will also explore opportunities to cooperate with overseas suppliers of dairy feed. The technologies of feeding, breeding and producing to improve production efficiency will continue to be enhanced. Meanwhile, the Group will take efforts to expand the business to upstream business through long-term cooperation with local agricultural companies to diversify revenue sources, so as to further strengthen the Group’s position as China’s leading dairy farming company.

End

About YuanShengTai Dairy Farm Limited

Listed on 26 November 2013 on the Main Board of the Hong Kong Stock Exchange, YuanShengTai is a leading dairy farming company in China dedicated to the production of super-premium raw milk. The Company ranked No. 5 in China in terms of herd size as of 31 December 2012 and No. 4 in China in terms of raw milk production volume in 2012. The Company operates a total of 4 dairy farms, 3 in Heilongjiang and 1 in Jilin, raising a total of 42,836 dairy cows, with half-year sales volume 105,640 tons of high quality raw milk as of 30 June 2014. The standardized farming methods have enabled the Group to consistently produce raw milk of a quality that surpasses the EU raw milk quality standard, which is among the highest industrial standards for raw milk and other dairy products in the world. In further, YuanShengTai will continue to provide high quality to Chinese consumers through unified farm operations by implementing uniform farm designs and layouts, systematic operating procedures, centralized management functions and automated information systems.

Frost & Sullivan Commends Sprinklr for Integrated, Enterprise-Level Social Media Solution

— The platform’s layered architecture, modular approach, customizable metrics and integrated social infrastructure capabilities make it a world-class solution

MOUNTAIN VIEW, Calif., Aug. 21, 2014 /PRNewswire/ — Based on its recent analysis of the social media monitoring and analytics market, Frost & Sullivan recognizes Sprinklr with the 2014 North American Frost & Sullivan Award for New Product Innovation Leadership. Sprinklr’s solution is a comprehensive social relationship platform that is more fully-featured than competing social media tools, providing more capabilities, better integration support and customizable performance management.

Sprinklr is attracting large customers who have already experimented with point solutions, as well as those who begin their social media programs by acknowledging their need for an enterprise-scale implementation. Unlike other companies that only offer social media listening and analysis of monitored feeds and crawl data, Sprinklr delivers a more complete solution by offering 20 well-integrated modules.

“The Sprinklr platform is designed to support customers’ entire cycle of growth, from social listening and engagement to a fully collaborative social business environment,” said Frost & Sullivan Industry Analyst Sandy Borthick. “Sprinklr enables customized metrics and performance management of social flows between the enterprise and its customers. Sprinklr also meets the FINRA, SEC and AICPA SOC guidelines for data retention and compliance.”

Unlike many of its peers, Sprinklr integrates directly with most existing enterprise software systems, and the company will develop application program interfaces (APIs) specifically for customers who need additional connections. It also enables custom tagging and tracking of inbound and outbound social interactions, so that service-level agreement (SLA) metrics can be applied and key performance indicators (KPIs) for social responsiveness can be measured.

Instead of rushing a monitoring product to market in the early days of social media, Sprinklr spent more than two years building its solution. The deliberate product construction enabled Sprinklr to deliver a product that reflects its conviction that the number of customer touchpoints within the organization is bound to increase, and that managing social conversations that involve these touchpoints will be as important as managing sales- and service-oriented social media interactions.

In addition to enabling the comprehensive tracking and management of conversations, Sprinklr also supports the next steps enterprises will need to take as they socialize additional business processes. Its platform provides a business framework to manage social channels, social community (or context), social collaboration (both internally and externally), social campaigns (outbound earned, owned and paid media), and content.

Sprinklr runs on the Amazon Web Services (AWS) cloud, using multiple server instances and replicated databases. It ensures business continuity and disaster recovery through systems provisioned across numerous geographic regions with fully replicated backups. Customers who wish to store their own backups can arrange for secured feeds from the AWS cloud.

“Sprinklr has positioned its product to out-compete point solutions by offering a more complete roster of social media monitoring, engagement, management and integration modules, and by articulating a vision for the social future of business practices and processes,” noted Borthick. “Enterprise customers are likely to favor Sprinklr over the competition because of its comprehensive approach and fully developed solution.”

Each year, Frost & Sullivan presents this award to the company that has developed an innovative product by leveraging leading-edge technologies. The award recognizes the value-added features/benefits of the product and the increased ROI potential that it offers to customers, which, in turn, increases customer satisfaction and drives higher market penetration.

Frost & Sullivan’s Best Practices Awards recognize companies in a variety of regional and global markets for outstanding achievement in areas that include leadership, technological innovation, customer service, and product development. Industry analysts compare market participants and measure performance through in-depth interviews, analysis, and extensive secondary research.

About Sprinklr

Sprinklr provides the technology that enables large brands to manage customer experiences at every social touchpoint across teams, departments, divisions, and geographies. Unlike tools and platforms, Sprinklr is the only fully integrated social relationship infrastructure, ensuring that the voice of the customer is heard throughout the enterprise. Called “the most powerful technology in the market” by a leading analyst, Sprinklr is headquartered in New York City and serves more than 500 clients worldwide including Microsoft, Intel, Virgin America, IHG, and 4 of the top 5 US banks. Visit www.sprinklr.com @sprinklr #SocialAtScale.

Contact:
Jeremy Epstein
P: 202-370-1431
E: jepstein@sprinklr.com

About Frost & Sullivan

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EndNote Collaborates with Science Hack Day to Bring Global Event to Russia

Innovative events will unite designers, developers and scientists to explore new scientific concepts

ST. PETERSBURG, Russia, Aug. 21, 2014 /PRNewswire/ — Thomson Reuters EndNote, the leading software for researchers, librarians and students to find, publish and manage bibliographies, citations and references, today announced a collaboration with Science Hack Day, a global grassroots movement aimed at empowering scientific innovation, to bring the first Science Hack Day to Russia. The event will be held in St. Petersburg, August 22-24 at Quiet Place, a coworking space dedicated to advancing science and technology in Russia.

Having held over 35 successful information technology (IT) hacking events since 2009, the event’s organizers aim to make their first Science Hack Day a collaborative effort between IT and science enthusiasts to bridge the gap between the two fields and build actionable scientific solutions. Quiet Place, the innovative coworking space in which the event is being held, shares a mission with Science Hack Day in matching up developers, designers, scientists and other innovators to foster interdisciplinary collaboration to create inventive projects and assist start-up organizations.

St. Petersburg is one of Russia’s science and tech hubs, so for our first Science Hack Day, we look forward to blending these communities to bring about new approaches to solving scientific challenges,” said Mikhail Kulakov, organizer of Science Hack Day St. Petersburg. “We also hope to call more attention to young inventors and specialists in science and tech fields.”

Science Hack Day is a global grassroots movement aimed at empowering scientific innovation with events joining scientists, engineers, programmers and designers to work together in the same physical space to nurture new scientific concepts. Since its launch in 2010, more than 30 Science Hack Days have been held in over a dozen countries. The event is designed to connect individuals from a variety of disciplines and backgrounds, all sharing a passion for science, to work together to develop new scientific solutions or “hacks.” During each event, groups compete in a friendly competition to build the best prototype based on a concept of their choice within 48 consecutive hours.

“Science Hack Day is inherently about mashing up ideas, mediums, industries and people to create spark for future ideas, collaborations and inspirations. Particle physicists team up with designers, marketers join forces with open source rocket scientists, writers collaborate with molecular biologists and developers partner with school kids,” said Science Hack Day Global Director, Ariel Waldman. “Science should be disruptively accessible. Science Hack Day empowers people from a variety of backgrounds to explore, participate in and build new ways of interacting with and contributing to science.”

Science Hack Days have been primarily fueled by volunteers and regional sponsorships. As the first global sponsor, EndNote is helping the movement further its goal of making science more accessible by providing funding and marketing support to increase awareness, enhance current events and spread the movement to new cities.

Science Hack Days planned for the remainder of 2014;  

“We’re excited to support the inaugural Science Hack Day in Russia, and look forward to the creative hacks that emerge from St. Petersburg’s prolific science and technology communities,” said Amanda Addis, general manager, Thomson Reuters EndNote. “Science Hack Day is a fun and energetic event that’s designed to nurture imagination and inspire creativity. We work with intelligent information on a daily basis and see what kinds of astonishing things can happen when people from varied disciplines are able to collaborate, brainstorm and build.”

EndNote is utilized by more than 1,100 global academic institutions and R&D departments and two million scientists, researchers and students worldwide. It is committed to keeping its user community in step with the constantly evolving world of scientific research by providing advanced tools for managing and creating research effectively and efficiently. EndNote is integrated with other industry-leading sources from Thomson Reuters, including the Web of ScienceSM and ScholarOne ManuscriptsTM peer-review systems and company research management and profiling tools.

Learn more about Science Hack Day and EndNote. Follow EndNote on Twitter for updates on Science Hack Day, including interviews with the winners: https://twitter.com/EndNoteNews or online http://endnote.com/sciencehackday. Follow live Science Hack Day St. Petersburg updates on Twitter at https://twitter.com/spbhackday.

To organize a Science Hack Day in your city visit http://sciencehackday.org or connect via Twitter: http://twitter.com/sciencehackday.

Thomson Reuters
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