News Earnings --
China Peregrine Announces 3rd Quarter Results
NORTH PALM BEACH, Fla.--(BUSINESS WIRE)--Nov. 19, 1999--China Peregrine Food Corp. (OTCBB:CHPF - news) today announced that sales reported in its 3rd quarter 10Q filed on the November 15, 1999 were $1.49 million vs. $1.08 million for 3rd Quarter 1998. Sales for the last nine months were $4.42 million, up significantly from $1.48 million for the first nine months of 1998. This sales increase is attributable to the Company's Meilijian dairy acquisition last year and reflects the current sales momentum that is the result of the Company's growth strategy.
The report indicates a loss of $866,434 for the quarter or .12 per share vs. a loss of $502,912 or .08 per share for 3rd quarter 1998. This loss is largely due to the Company's investment in two new business opportunities. The Company has invested in the development of its new line of Looney Tunes(tm) flavored dairy products. Earlier this week, the Company announced a preview introduction in Shanghai of its first four flavored milk products in connection with the 20th Anniversary of Carrefour Hypermarkets in China. In addition, the Company plans a broad launch of additional milk and other Looney Tunes(tm) premium dairy products in Shanghai and Hangzhou, China, during the first quarter of the new year.
China Peregrine also has been preparing for the introduction of imported premium snack crackers in China manufactured by Lance Products, Inc. (NADSAQ:LNCE) of Charlotte, NC. China Peregrine has expended significant costs in market research, new personnel, and sales and distribution preparation for a successful introduction of these high quality American made snack crackers. These crackers will represent the first of what China Peregrine believes will be a lucrative and rapidly expanding new business strategy for the Company in China.
Mr. Roy G. Warren, President and CEO of China Peregrine, said, `` The costs reflected in this quarterly statement are the result of an intense effort by the company to bring to fruition the two new business models undertaken by CHPF during 1999. The Looney Tunes(tm) premium dairy product line and the import strategy initiated between Lance and China Peregrine are the first tangible examples of the successful implementation of this plan. These products are premium-quality and branded. The early results from our limited launch of the Looney Tunes(tm) flavored milks endorse the company's strategy of providing select products that are in high demand in China while maintaining a higher quality standard than is currently available in the marketplace. Chinese consumers will pay a premium price for branded products that are healthy, great tasting and endorsed by Western icons, like the Looney Tunes(tm) characters.'
Commenting on the recent trade agreement between the Chinese government and the United States, Mr. Warren said, `` This agreement is clearly a win-win situation for the Chinese economy, the Chinese consumer, and United States business interests. Once China attains accession to the WTO there will certainly be a reduction in the tariffs associated with importing Western quality products and we expect to enjoy a much better competitive position with our import business unit because of that relief.'
China Peregrine owns 70% of an existing fifty-year National Joint Venture with China National Green Food Corporation, a wholly owned subsidiary of the Ministry of Agriculture of the People's Republic of China, one of the first-ever approved in China. China Peregrine currently controls and operates dairy facilities in Shanghai and Hangzhou, China. The Company manufactures and distributes The Happy Family(tm) Brand of dairy products in these markets, one of the only Western quality brands available, and will be introducing the Lance products and a full line of Looney Tunes(tm) branded products, including pasteurized milks, juices and yogurt drinks in the short-term.
For more information, visit our Web site, www.chinaperegrine.com |
