Dachan’s Food Business Maintained a Strong Growth while Overall Turnover Saw Continued Increase

Hong Kong, 26 October 2012 – A leading poultry and food company in China, Dachan Food (Asia) Limited (“Dachan Food” of the “Company”, stock code: 3999) published its result for the nine months ended 30 September 2012 on 26 October. Despite the slowing GDP growth and persistently weak economic condition, overall turnover of Dachan Food recorded a continued increase compared to last quarter, thanks to the stable growth in the market shares and sales of each business segment.  Of these segments, the processed foods business maintained a particularly strong growth. The total revenue of Dachan Food increased 4.5% as compared to the corresponding period in 2011, while the revenue of the processed food segment gained a significant increase of 19.7%.

During the period under review, Dachan’s revenue increased to approximately RMB 8.4 billion as compared to the corresponding period in 2011.   In addition to the growth in the processed foods revenues, the feed segment maintained a stable increase of 4% in revenue while the performance of the broiler meat segment was unchanged. For the nine months ended 30 September 2012, the profit attributable to equity shareholders of the Company amounted to approximately RMB 50.64 million.

 The rewards of Dachan Food having been aggressively expanding downstream food processing and strengthening its brand are gradually emerging in increased market shares of high-value products and synergies of channel and product portfolio development. The Group also maintained intimate relationships with major clients and improved end consumer loyalty. Furthermore, Dachan Food has been attaching great importance to food safety, which has become one of the most emphasized issues across the country. The traceability system, adopted since 2009, has been well recognized by our clients and consumers. By virtue of its integrated industry chain, Dachan ensures that it provides the consumer with high quality and safe products, which turns it into the top consumer choice when selecting a safe and secure brand.

Although the feed segment, which has been a stable income stream of Dachan Food, faced surging cost, revenue maintained stable growth.  Market share is experiencing improvement from enhanced brand development and product competitiveness driven by biotechnology-based R&D efforts.

Mr. Han Jia-Hwa n , the chairman of Dachan Food, said, “For the first three quarters of 2012, Dachan Food actively responded to the unfavorable business environment and maintained continuous growth in revenue. Meanwhile, Dachan Food insists on responsibly fulfilling the urgent consumer demand for safe food and will continue to enhance and promote the brand image of ‘Sisters’ Kitchen’.  Looking forward, it is increasingly clear that the economy will recover.  Industry vitality and consumer purchasing power are recuperating, and stimulating measures from the government are taking effect. Commodity prices have also temporarily relaxed. The fourth quarter is typically the peak season for the industry, during which industry players generally achieve better results under a thriving environment. Dachan Food is cautious but optimistic towards its future operations, and will continue to focus on providing the consumers with high quality, safety-assured food and will further extend our influence on the industry and strengthen our market reputation.”