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Renmin Tianli Group, Inc. Reports Fourth Quarter and Full Year 2017 Financial Results

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Renmin Tianli Group, Inc. Reports Fourth Quarter and Full Year 2017 Financial Results

PR Newswire

WUHAN CITY, China, March 27, 2018 /PRNewswire/ -- Renmin Tianli Group, Inc. (NASDAQ: ABAC) ("Renmin Tianli" or the "Company"), a producer of breeder hogs, market hogs and black hogs, as well as specialty processed black hog pork products sold through retail outlets and the internet, with headquarters in Wuhan City, Hubei Province, China, today announced its financial results for the three and twelve months ended December 31, 2017.

Mr. Luchang Zhou, Chief Executive Officer of Renmin Tianli, commented, "We saw a moderate increase of 1.7% in total revenues for the fourth quarter of 2017 as a result of 31.7% growth in the number of hogs sold from our hog farming business, which was partially offset by a decrease in the blended average selling price per hog as well as a decrease in retail sales volume. Gross and operating margins and net income all improved significantly in the fourth quarter of 2017, as we continued to improve our inventory turnover rate and reduce our employee payroll. Looking ahead, we expect the hog farming industry to continue to face significant uncertainty in market demand and high volatilities in both hog pricing and feed costs."

Fourth Quarter 2017 Financial Results


For the Three Months Ended December 31,

($ thousands, except per share data)

2017


2016


% Change

Revenues

$                7,310


$               7,186


1.7%

Hog farming

6,687


6,253


6.9%

Retail

623


934


-33.2%

Gross margin

18.3%


17.7%


0.7 pp

Operating margin

8.4%


4.7%


3.7 pp

Net Income (loss)

626


365


71.7%

Net income from continuing operations

626


371


68.8%

Gain (loss) from operations of discontinued component

-


(6)


NM

Net income (loss) for common shareholders

626


(382)


263.9%

Revenues for the fourth quarter of 2017 increased by $0.12 million, or 1.7%, to $7.31 million from $7.19 million for the same period of last year. The increase in overall revenues was due to an increase in revenues from regular hog sales partially offset by a decrease in revenues from our black hog program.

Revenues from hog farming, which includes sales of regular breeder hogs, regular market hogs, and black hogs, increased by $0.43 million, or 6.9%, to $6.69 million for the fourth quarter of 2017 from $6.25 million for the same period of last year. The Company sold a total of 36,751 regular breeder hogs, regular market hogs and black hogs with a blended average selling price of $182 per hog during the fourth quarter of 2017, compared to 27,914 hogs sold and a blended average selling price of $224 per hog for the same period of last year.


For the Three Months Ended December 31,


2017


2016


No. of Hogs
Sold


Average
Price/Hog ($)


Sales
($ thousands)


No. of Hogs
Sold


Average
Price/Hog ($)


Sales
($ thousands)

Breeder hogs- regular hogs

4,658


$                252


$             1,174


3,861


$                240


$               925

Market hogs- regular hogs

21,524


152


3,274


14,689


200


2,936

Market hogs- black hogs

10,569


212


2,239


9,364


255


2,392

Total Hog Farming

36,751


182


6,687


27,914


224


6,253


















Kilogram


Average
Price/kg ($)

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