Sea Minh Hai: Q1-2014 positive results

Fishery industry has passed the year 2013 full of difficulties and changes.

Endemic EMS caused serious affects for the shrimp culture section in the leading export country- Thailand, cutting nearly 1/2 export quantity of this nation. This shortage has directly impacted to main markets- USA, Japan and EU, resulted in price upshot never seen in these markets and the world in general. Orders concluded by US, Japan and EU buyers with suppliers could not completed in time. Buyers had to looking for substitutes to cover the shortage, or/and adjust buying price so that they can get part of necessary quantity. However this could hardly fill the shortage of about 300,000 metric tons!

Due to great upset of price in main markets plus difficulties perculiar VN shrimp industry (antibiotic problem, foreign matter problem, financial problem etc...), many VN packers staggered, and even some became brancrupt. Sea Minh Hai however has passed the difficult 2013 year with some results as seen in the business reports presented in the 2014 Shareholders' Meeting in early of April, 2014.

Positive results in Q1-2014

The preliminary report for Q1 shows positive business results. Below are main production and financial performance.

Production

Export Quantity

Two important characteristics can be observed from above data.

1. Q1-2014 production quantity change in upwards trend. An increase of about 80% as compared to same period last year.

Usually Q1 is the time of lowest production period in the year, for it's the post harvest time in the year and it's in the sunny season that most of farmers stop their culture for pond preparation for the next season or just because it's the time when diseases likely to happen due to the hot wheather.

2. Vannamei ratio tends to increase to replace Black Tiger, as shows ba statistics last year by VASEP data in the middle of 2013. This trend continues in 2014.

After-tax profit inreases 3 folds for Q1 2014 as compare the same period last year

Sales for Q1/2014 reaches VNĐ 303.48 billion, and 110.7% increase as compared the same period last year, and gross profit reaches VND 13.64 billion, an increase of 53.6% compared to same period last year.

For other costs, Q1 sees a slightly increase, sales cost increases nearly 9%, management cost increases 13% as compared same period last year. However financial costs decreases to nearly 58% compared to Q1-2013, most from bank loans.

After decreasing the related costs, after tax profit reaches VND 3.18 billion, a 3 times increase as compared to the same period last year.

For 2014, the target sales is VND 1.370 billion, and after tax profit is VND 14 billion. So after Q1/2014, SMH has comleted 22.15% sales target and 22.71% profit target for 2014.

BUSINESS RESULTS (unit: billion VND)