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

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

PR Newswire

WUHAN CITY, China, Aug. 20, 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 six months ended June 30, 2018.

Mr. Luchang Zhou, Chief Executive Officer of Renmin Tianli, commented, "Despite a 20% increase in the number of hogs sold from our hog farming business, overall revenues decreased slightly during the second quarter primarily due to decreases in average selling prices for both hog farming and retail as well as a decline in retail sales volume. Overall margins and profitability also decreased on a year-over-year basis as the hog industry faced continued pricing pressure on the back of increased hog supply and sluggish consumer demand. However, we have seen an improving trend in hog prices since July and, if this trend continues, anticipate a gradual recovery in our business in the second half of the year."

Second Quarter 2018 Financial Results


For the Three Months Ended June 30,

($ thousands, except per share data)

2018


2017


% Change

Revenues

$               6,179


$              6,222


-0.7%

Hog farming

5,889


5,561


5.9%

Retail

290


661


-56.2%

Gross margin

3.0%


13.4%


-10.4 pp

Operating margin

-7.1%


0.9%


-8.0 pp

Net Income (loss)

(418)


64


-749.0%

Earnings (loss) per share

(0.05)


0.01


-749.3%

 

For the second quarter of 2018, revenues decreased by $0.04 million, or 0.7%, to $6.18 million from $6.22 million for the same period of last year. The slight decrease in overall revenues was due to a decrease in revenues from black market hogs and specialty black hog pork products through retail, partially offset by increases in revenues from our regular breeder hog and regular market hog sales.

Revenues from hog farming, which includes sales of regular breeder hogs, regular market hogs, and black hogs, increased by $0.33 million, or 5.9%, to $5.89 million for the second quarter of 2018 from $5.56 million for the same period of last year. The Company sold a total of 38,599 regular breeder hogs, regular market hogs and black hogs with a blended average selling price of $153 per hog during the second quarter of 2018, compared to 32,179 hogs sold and a blended average selling price of $173 per hog for the same period of last year.


For the Three Months Ended June 30,


2018


2017


No. of Hogs
Sold


Average
Price/Hog ($)


Sales
($ thousands)


No. of Hogs
Sold


Average
Price/Hog ($)


Sales
($ thousands)

Breeder hogs- regular hogs

3,806


$               262


$               999


3,344


$                247


$               827

Market hogs- regular hogs

22,923


128


2,929


17,924


144


2,582

Market hogs- black hogs

11,870


165


1,961


10,911


197


2,153

Total Hog Farming

38,599


153


5,889


32,179


173


5,561






Kilogram


Average
Price/kg ($)


Sales
($ thousands)


Kilogram


Average
Price/kg ($)


Sales
($ thousands)

Retail- specialty black hog pork products

65,319


$                   4


$               290


138,123


$                    5


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