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Renmin Tianli Group, Inc. Reports Unaudited Financial Results for First Quarter 2018

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Renmin Tianli Group, Inc. Reports Unaudited Financial Results for First Quarter 2018

PR Newswire

WUHAN CITY, China, May 14, 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 months ended March 31, 2018.

Mr. Luchang Zhou, Chief Executive Officer of Renmin Tianli, commented, "With total number of hogs sold increasing by 23.7% year-over-year, our hog farming business performed well during the first quarter that more than offset the decrease in blended average selling price ("ASP") and the moderate decrease in our retail business, leading to an 8.2% increase in total revenues and improvement in both margins and profitability. Looking ahead, as we continue to focus on improving our inventory turnover rate and managing our expenses, we anticipate a stabilization in our hog farming business despite uncertainty in hog pricing and feed costs."

First Quarter 2018 Financial Results


For the Three Months Ended March 31,

($ thousands, except per share data)

2018


2017


% Change

Revenues

$          7,230


$         6,681


8.2%

Hog farming

6,667


5,974


11.6%

Retail

562


707


-20.5%

Gross margin

16.2%


14.0%


2.1 pp

Operating margin

2.6%


0.4%


2.1 pp

Net Income (loss)

204


33


515.0%

Earnings (loss) per share

0.025


0.004


515.3%

Revenues for the first quarter of 2018 increased by $0.55 million, or 8.2%, to $7.23 million from $6.68 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 $0.69 million, or 11.6%, to $6.67 million for the first quarter of 2018 from $5.97 million for the same period of last year. The Company sold a total of 37,373 regular breeder hogs, regular market hogs and black hogs with a blended average selling price of $178 per hog during the first quarter of 2018, compared to 30,217 hogs sold and a blended average selling price of $198 per hog for the same period of last year.


For the Three Months Ended March 31,


2018


2017


No. of
Hogs
Sold


Average
Price/Hog
($)


Sales 
($'000)


No. of
Hogs
Sold


Average
Price/Hog
($)


Sales 
($'000)

Breeder hogs- regular hogs

3,810


$        265


$   1,009


2,837


$        245


$   696

Market hogs- regular hogs

22,308


152


3,384


16,792


169


2,845

Market hogs- black hogs

11,255


202


2,275


10,588


230


2,432

Total Hog Farming

37,373


178


6,667


30,217


198


5,974


Kilogram


Average
Price/kg
($)


Sales 
($'000)


Kilogram


Average
Price/kg
($)


Sales 
($'000)

Retail- specialty black hog pork products

107,471


$            5


$      562


136,682


$            5


$   707

Revenues for the first quarter of 2018 from regular breeder hog sales increased by 44.9% to $1.01 million with the number of regular breeder hogs sold increasing by 34.3% to 3,810 hogs and the average selling price of regular breeder hogs increasing by 7.9% to $265 per hog. Revenues for the first quarter of 2018 from regular market hog sales increased by 18.9% to $3.38 million as the number of regular market hogs sold increased by 32.8% to 22,308 hogs while the average selling price of regular market hogs decreased by 10.5% to $152 per hog. Revenues for the first quarter of 2018 from black market hogs decreased by 6.5% to $2.28 million with the number of black hogs sold increasing by 6.3% to 11,255 hogs and the average selling price of black hogs decreasing by 12.0% to $202 per hog.

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