UTZ Certified publishes the results of a four-year project on coffee wastewater treatment

AMSTERDAM, Aug. 27, 2014 /PRNewswire/ — The Energy from Coffee Wastewater project by UTZ Certified has proven that is possible to generate energy, tackle climate change and protect water resources by treating discharges from coffee mills. The project started in 2010 with the goal of addressing environmental and health problems caused by the wastewater produced in the coffee industry.

Photo – http://photos.prnewswire.com/prnh/20140827/702499-a
Photo –
http://photos.prnewswire.com/prnh/20140827/702499-b

Tailor-made coffee wastewater treatment systems and solid-waste treatment mechanisms were installed in eight coffee farms in Nicaragua, ten in Honduras and one in Guatemala. The positive impact of the project on over 5,000 people in the region has inspired UTZ Certified to replicate the initiative in other countries.

Latin America produces around 70% of the world’s coffee and is the continent where 31% of the world’s freshwater resources are located. Yet coffee production generates a great amount of wastewater that is regularly released untreated into rivers, affecting aquatic fauna and flora as well as downstream communities. Additionally, coffee wastewater comes along with tons of organic waste and high toxicity which affects the soil and generates considerable amounts of greenhouse-gas emissions, particularly methane, heavily contributing to climate change.  

The Energy from Coffee Wastewater project has been implemented in a range of differently sized farms. The achieved results of the project range from preventing local deforestation of native trees to better indoor environments for families who replaced firewood with domestic gas stoves for cooking. Additional outcomes included:

  • Treatment of essentially all water used in coffee processing
  • Over 50% less water used during coffee processing
  • Generation of significant amount of biogas used to power households and coffee mills
  • Prevention of the release of greenhouse-gas emissions

“Coffee production is only environmentally sustainable when water is used efficiently and polluted water from the wet-mill process is treated. Local ecosystems do not have the capacity to clean the large amounts of contaminated fluids,” said Han De Groot, executive director at UTZ Certified. “Rural communities and coffee production depend intrinsically on a ready supply of fresh water. So if we want to talk about coffee produced in a sustainable manner then wastewater must be treated when released into the environment,” he concluded.

UTZ Certified is currently introducing the technology in Peru and Brazil. UTZ hopes to get further funds and industry’s support to replicate the initiative in Africa and Asia.

http://www.utzcertified.org

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Setting Record Straight on Unique Canola Plant and its Healthy Oil

BEIJING, Aug. 26, 2014  /PRNewswire/ — Canola oil is widely regarded as heart-healthy and versatile by health professionals and chefs, but some consumers may not understand why – or know what canola is in the first place.

“Canola is often confused with rapeseed, but the two crops and their oils are distinctly different both compositionally and nutritionally,” explains Bruce Jowett, vice president of market development at the Canola Council of Canada.

Canola oil comes from the crushed seeds of the canola plant, which is a member of the Brassica family that includes broccoli, cabbage and cauliflower. It was developed in Canada through traditional plant breeding to remove two undesirable components (erucic acid and glucosinolates) found in rapeseed. To acknowledge these differences, the new plant earned a new name, canola – a contraction of “Canadian” and “ola” meaning “oil.”

“By an internationally regulated standard, canola oil is very low in erucic acid (less than 2%) whereas rapeseed oil is high in it (about 40%) with a different taste and appearance,” Jowett noted. “Most rapeseed oil sold in China is classified as grade four and much darker in color with a slightly pungent flavor, whereas canola oil is light in color, texture and flavor.”

The oil extracted from canola plants is one of the healthiest in the world. Doctors and nutrition experts laud canola oil for both what it does contain and what it doesn’t. Of all common cooking oils, canola has the most plant-based omega-3 fat (11 percent) and the least saturated fat (7 percent) – half that of olive oil (15 percent). Canola oil is also rich in monounsaturated fat (61 percent) and free of trans fat.

“Since heart disease and diabetes are leading causes of death in China, it’s critical to lower intake of saturated fat and to consume a moderate amount of healthy fats instead,” says Dr. Liu Na, senior nutrition expert in Beijing. “Canola oil is simply a smart choice as an everyday cooking oil.”

In fact, the U.S. Food and Drug Administration authorized a qualified health claim on canola oil’s ability to reduce the risk of heart disease when used in place of saturated fat. Research has shown that the oil’s high unsaturated fat content (93 percent) helps lower “bad” LDL cholesterol, thereby reducing the risk of heart disease. Unsaturated fats are made up of mono- and polyunsaturated fats, including omega-3 and omega-6 fats.

“The types of omega-3 and -6 fats found in canola oil are considered ‘essential’ in the diet because the body can’t make them on its own,” notes Liu. “Canola oil is higher in omega-3 fat than other common cooking oils so it’s an easy way to get some of this often underconsumed nutrient in the diet.”

Moreover, chefs consider canola oil a kitchen essential, too. Its neutral flavor, light texture and high heat tolerance (smoke point of 242 °C / 468 °F) make it a match for almost any culinary application.

“I love cooking with canola oil because it’s very versatile and allows Chinese ingredients to shine,” agrees Da Cai, cookbook author and well known food blogger. “I use it for sautéing, deep-frying, baking, vinaigrettes – you name it. The fact that it’s healthy as well makes my decision to use it for my family and readers easy.”

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KUALA LUMPUR, Malaysia, Aug. 25, 2014 /PRNewswire/ — With a well-earned reputation as Asia’s leading event for the feed, livestock and meat industries since its inception in 2001, LIVESTOCK ASIA 2015 EXPO & FORUM is set to return once again at the Kuala Lumpur Convention Centre from 21- 23 September, 2015. The 2015 show is expected to attract over 7,000 industry professionals and top decision makers to get updates on the latest innovations, which includes a programme of informative seminars providing invaluable information covering the latest developments in the feed, livestock and meat industries.

From Left: Prof. Dr. Zulkifli, Dato’ Dr. Vincent, Dr. Raghavan, Tan Sri Dr Ahmad Mustaffa, Prof. Datin Paduka Dr. Aini, Jeffrey Ng and Rose Chitanuwat.

From Left: Prof. Dr. Zulkifli, Dato’ Dr. Vincent, Dr. Raghavan, Tan Sri Dr Ahmad Mustaffa, Prof. Datin Paduka Dr. Aini, Jeffrey Ng and Rose Chitanuwat.

Recognised as the Mother event for the Asian Livestock Series, the Steering Committee team that has been formed to make the event a great success and more prestigious are leaders in livestock industry. Moreover, the World Poultry Science Association (WPSA) and World Poultry Veterinary Association (WPVA) of Malaysia will jointly organize a scientific conference during LIVESTOCK ASIA 2015.

The chairman of UBM Malaysia as well as the founder of the Livestock event, Tan Sri Dr. Ahmad Mustaffa Babjee, chaired the 2nd Livestock Asia Steering Committee Meeting held last week, making LIVESTOCK ASIA 2015 the most successful event to provide ongoing support to grow and develop Malaysia’s livestock industries. The members are:

  • Tan Sri Dr Ahmad Mustaffa Babjee, Chairman, UBM Malaysia
  • Dr. Raghavan, Livestock Consultant
  • Dato’ Dr. Vincent Ng, President, Veterinary Association Malaysia (VAM)
  • Prof. Prof. Dr. Zulkifli Idrus, President, World Poultry Science Association (WPSA) Malaysia
  • Prof. Datin Paduka Dr. Aini Ideris, President, World Poultry Veterinary Association (WPVA) Malaysia
  • Mr.Jeffrey Ng, Secretary General Federation of Livestock Farmers’ Associations of Malaysia (FLFAM)

Livestock Asia Expo & Forum presents the best opportunities for organisations to increase their brand exposure as they capitalize on special networking opportunities at this major event. To learn more about the show, please log on to http://www.livestockasia.com.

Notes to the Editor

About UBM Asia (www.ubmasia.com)

Owned by UBM plc listed on the London Stock Exchange, UBM Asia is Asia’s leading exhibition organiser and the biggest commercial organiser in mainland China, India and Malaysia. Established with its headquarters in Hong Kong and subsidiary companies across Asia and in the US, UBM Asia has a strong global presence in 25 major cities with 30 offices and over 1,400 staff.

With a track record spanning over 30 years, UBM Asia operates in 21 market sectors with 160 dynamic face-to-face exhibitions, 75 high-level professional conferences, 28 targeted trade publications, 18 round-the-clock vertical portals and virtual event services for over 1,000,000 quality exhibitors, visitors, conference delegates, advertisers and subscribers from all over the world. We provide a one-stop diversified global service for high-value business matching, quality market news and online trading networks.

UBM Asia has extensive office networks in China, Southeast Asia and India, three of the world’s fastest growing B2B events markets. UBM China has 11 offices in the major cities in mainland China, including Beijing, Shanghai, Guangzhou, Hangzhou, Guzhen and Shenzhen, where we organise more than 70 exhibitions and conferences. In ASEAN, UBM Asia operates from its offices in Malaysia, Thailand, Indonesia, Singapore, Vietnam and the Philippines with over 60 events in this region. UBM India teams in Mumbai, New Delhi, Bangalore and Chennai organise 20 exhibitions and 60 conferences every year across the country.

About UBM Asia in ASEAN (www.ubmasean.com)

In ASEAN, we serve 13 market sectors with wholly-owned subsidiary companies and JV companies in seven offices in the major cities in ASEAN, including Bangkok, Hanoi, Ho Chi Minh City, Jakarta, Kuala Lumpur, Manila and Singapore. We provide over 60 products in various categories: trade fairs, conferences and publications. As the leading B2B event organiser in the region, we are the largest exhibition organiser in Malaysia.

Our products serve tens of thousands of exhibitors, visitors, conference delegates, advertisers, subscribers and corporations in the region and from all over the world with high value face-to-face business-matching events and quality conference programmes presented by top-notch industry leaders. We have over 130 staff in six countries.

This press information is issued by;

Marketing Communication Department

United Business Media (M) Sdn Bhd
A-8-1, Level 8, Hampshire Place Office
157, Hamphire 1, Jalan Mayang Sari
50450 Kuala Lumpur, Malaysia
Tel: +603-2176-8788 Fax: +603-2164-8786
E: sufian.zahari@ubm.com W: www.ubmasia.com

For more information on Livestock Asia 2015 Expo & Forum, contact;

Ms. Rita Lau / Ms. Salmiza Salim
E: rita.lau@ubm.com / salmiza.salim@ubm.com / livestockasia@ubm.com

Photo – http://photos.prnasia.com/prnh/20140822/8521404719
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IRVINE, Calif., Aug. 25, 2014 /PRNewswire/ — One in five children in America struggles with hunger. Hunger not only impacts a child’s health but also results in poorer academic performance and can ultimately have a lifelong effect on future development and success.

Baja Fresh Partners with Givex to Fight Childhood Hunger

Baja Fresh Partners with Givex to Fight Childhood Hunger

That is why from August 15th to October 15th. Baja Fresh Mexican Grill, the quick-casual fresh Mexican chain, is donating 20% of all proceeds from the sale of its new line of Baja Fresh No Kid Hungry gift cards to Share Our Strength’s No Kid Hungry® campaign. Givex is contributing the technology for the gift program.

The No Kid Hungry campaign connects those in need with long-term help and resources such as school breakfast programs and educating families on shopping and cooking on a limited budget.

The Baja Fresh No Kid Hungry gift cards are powered by Givex, a global technology company and Baja Fresh’s gift card program provider since 2005. Charitable contribution programs are one of Givex’s many services.

“Helping end childhood hunger in America is a cause that resonates strongly with us,” says Charles Rink President and CEO, Baja Fresh. “Our No Kid Hungry gift cards provide a convenient way for our guests to contribute to Share our Strength’s programs and raise awareness in our communities. Our partnership with Givex allows for a seamless process for our operators to participate in supporting Share our Strength.”

To see a list of participating Baja Fresh locations, please visit:

http://www.bajafresh.com/pdf/homepage-promos/nokidhungrypromotionbajafresh2.pdf

About Baja Fresh

Baja Fresh Mexican Grill serves bold, fresh Mexican flavors for lunch, dinner, dine-in or take-out all in a spacious and contemporary environment. All entrées are made with never frozen, all natural, hormone free, fire-grilled, chicken, steak and slow roasted pork carnitas. Don’t forget the handmade guacamole and salsa bar hosting 6 salsas made fresh everyday, all day. Founded in 1990 and headquartered in Irvine, Calif., Baja Fresh operates or franchises 205 restaurants in 26 states as well as Dubai and Singapore. To learn more about Baja Fresh visit www.bajafresh.com.

About Givex

Givex is a technology company offering clients a global reach with cost-effective gift card, omni-channel loyalty, analytics, stored value tickets, and cloud-based POS systems. Our core distinction is taking on the tough task of managing all aspects of the transaction to ensure companies can deliver maximum customer satisfaction. Givex products and services give you insight into your data to enable you to better drive sales growth, customer relationship management and enterprise resource planning.

About Share Our Strength’s No Kid Hungry® Campaign

No child should grow up hungry in America, but one in five children struggles with hunger. Share Our Strength’s No Kid Hungry® campaign is ending childhood hunger in America by ensuring all children get the healthy food they need, every day. The No Kid Hungry campaign connects kids in need to effective nutrition programs like school breakfast and summer meals and teaches low-income families to cook healthy, affordable meals through Cooking Matters. This work is accomplished through the No Kid Hungry network, made up of private citizens, public officials, nonprofits, business leaders and others providing innovative hunger solutions in their communities. Join us at NoKidHungry.org.

Image with caption: “Baja Fresh Partners with Givex to Fight Childhood Hunger (CNW Group/Givex)”. Image available at: http://photos.newswire.ca/images/download/20140825_C7788_PHOTO_EN_42528.jpg

For further information:

For more information or media inquiries, please contact

Bryan Wang
Director of Marketing
Givex
Phone: 416.350.9660 x 309
Toll free: 1.877.478.7733
Fax: 416.350.9661
Email: bryan.wang@givex.com

Website: http://www.givex.com

Photo – http://photos.prnasia.com/prnh/20140825/8521404737

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CHICAGO, Aug. 24, 2014 /PRNewswire/ — Constellation Brands Beer Division today announced a voluntary recall of select packages in Guam containing 12-ounce clear glass bottles of its Corona Extra beer that may contain small particles of glass. The voluntary recall covers 12-ounce clear bottles in select six-pack, 12-pack and 18-pack packages containing bottles with the production codes listed below.

Photo – http://photos.prnewswire.com/prnh/20140823/139054
Photo – http://photos.prnewswire.com/prnh/20140823/139053

This recall comes after routine inspections in the company’s quality control laboratory detected defects in certain bottles that could cause small particles of glass to break off and fall into the bottle. The affected bottles came from one of four glass plants run by a third party manufacturer, which supplies the company the bottles. While the company believes that less than 1 percent of the bottles produced from the plant may be affected, it is recalling select packages that may contain defective bottles to ensure the safety of consumers.

Affected Production Codes:
The following production codes for select Corona Extra 12-ounce bottle packages are included in the recall:

  • Any code that starts with “G” and also ends with “9” on six- and 12-packs
  • Any code that starts with “F29” and also ends with “9” on 18-packs only
  • Any code that starts with “F30” and also ends with “9” on 18-packs only

To date the company has received no reports of injuries resulting from the affected bottles.

The following products are not being recalled:

Corona Extra cans
Corona Extra 24-pack loose bottles
Corona Extra 24 oz. bottle
Corona Extra draft beer
Corona Light bottles
Corona Light cans
Corona Light draft beer
Corona Familiar
Coronitas

“We are troubled by this development and are working proactively with our distributors, retailers and consumers to resolve this situation as quickly as possible,” said Bill Hackett, President of Constellation Brands Beer Division. “Throughout its history, Corona Extra is a brand that has been synonymous with quality, consistency and refreshment. Our entire organization, including our brewers, our production team, and all our employees across our system, is absolutely committed to doing everything possible to complete this recall quickly, and ensure the safety of our consumers and integrity of our product.”

Upon discovering the issue, Constellation took prompt action to identify and secure potentially affected product and will work closely with distributors and retailers to minimize the impact on consumers. The company is diligently working to recover potentially affected product that is in retail stores and may have reached consumers.

Consumers who have bottles marked with the listed production codes can visit http://www.coronausa.com/recall for more information, and email corona@premiereresponse.com for instructions on reimbursement.

About Constellation Brands Beer Division
Constellation Brands Beer Division is the #3 beer company in the U.S. and the exclusive brewer, marketer and supplier of a growing portfolio of high-end, iconic, imported beer brands for the U.S. market. The portfolio includes Corona Extra (the #1 imported beer in the U.S. and #5 beer overall), Corona Light, Modelo Especial, Negra Modelo, Pacifico and Victoria beer brands. The Beer Division also imports the Tsingtao beer brand in the U.S. For more information, visit www.cbrands.com.

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Looking to capitalize on the strong growth opportunities in China’s food & beverage industry, Maybank PE, the private equity arm of Maybank, made its maiden investment in China by investing in YPX

SHANGHAI, Aug. 22, 2014 /PRNewswire/ — YPX Cayman Holdings Co. (“the Company” or “YPX”), a leading quick service restaurant company headquartered in Shanghai, announced today the closing of its series D financing round of USD 25M. MAM PE Asia Fund I (Labuan) LLP, a fund managed by Maybank Private Equity Sdn Bhd (“Maybank PE”), is the lead investor in the latest financing round, with follow-on investments from existing investors such as LionRock Capital, Ignition Capital, as well as renowned individual investors such as Mr. Koh Boon Hwee, former DBS Bank and Singapore Airlines Chairman, and Mr. Peter Tan, former President of McDonalds Greater China and ex-CEO of Burger King for Asia Pacific. Series D financing proceeds will be utilized to grow YPX directly-owned stores and to expand YPX’s franchising system.

Cloud 9 Store

Cloud 9 Store

 

Three-cup Chicken

Three-cup Chicken

“We are truly excited to have an investment from a fund seeded by Malayan Banking Berhad, or better known as Maybank. Maybank is one of South East Asia’s largest banks, and the largest in Malaysia by market capitalisation. Named one of the Top 20 strongest banks in the world consecutively in 2013 & 2014 (by Bloomberg Markets Magazine July / August 2014), Maybank through its private equity arm has a very rigorous due diligence process, and we are honored to have passed their stringent test on our business and management. It is a very significant event for me and the Company to have the fund investing in us. Maybank PE brings a wealth of experience to help us grow our business,” says Chris Tay, CEO and founder of YPX Cayman Holdings.

Mr. Pneh Tee Keong, CEO of Maybank PE, says, “We are very pleased with this outcome. The upside for this segment in China is enormous, given the increasing middle class population. We are also comforted by the fact that we are investing in a sound business, and backing an experienced management team to help us navigate through the intricacies of operating in this market. We are very excited to be a part of what I believe will be a successful partnership with Chris, his team and all the other shareholders.”

With this fresh funding, YPX will be able to grow more stores via direct-owned operations as well as franchisees across China. The company will also allocate some proceeds for R&D to diversify its menu offering, brand awareness and information technology to support its future growth. “Serving good quality, value for money food has been the hallmark of YPX since its inception. This year, we have continued to focus on improving our food quality and safety standards; we see this as an ongoing pursuit that will continue to underpin all that we do at YPX. 2014 is also our inaugural year for franchising, and we are very committed to being a responsible franchisor. We will set up a robust system to support and train our franchisees as they are in all ways business people and want a good return on their investments,” says Tay.

“In the past, franchising had an undesirable reputation in China, due to a laggard monitoring system and a mismatch of values between franchisors and franchisees. The industry was further tarnished by unethical practices by franchisors who emphasized short-term gains over creating a sustainable brand name. However things are changing, albeit slowly, and the market is maturing for the better; franchisees are more informed and educated than before. We want to be the first one to stand out as the most sought after and most responsible franchisor in China. Needless to say, this will not slow down our own corporate-owned stores. Not only will this positively add to our revenue growth, it will also provide support to our franchised stores. In addition to this, we are true believers in the use of information technology in the F&B industry, when often times IT takes a back seat in our kind of business. So we will invest heavily on IT in the coming years. The hottest potential is that China is still urbanizing rapidly and its consumer market is going to be the largest in the world in the next few years, if it isn’t already,” adds Tay.

YPX’s first brand is Cloud9, a Taiwanese Fast Casual Restaurant chain, which currently has more than 40 stores in 12 cities. Founded in late 2010, Cloud9 was seed-funded by Qiming Venture Partners, well known for its highly successful investment in Xiaomi. Over the next year, YPX hopes to add two more brands, be it from the USA or another country that has good brand equity amongst Chinese consumers. Tay says, “We will not add another brand for the sake of adding a brand. It has to have the same core values as the first brand: serving a majority of the Chinese customers with the best food at the most affordable pricing. We have strict principles that we adhere to when developing and nurturing a brand. We do not want to segregate any spectrum of the customers. We want brands that can understand the Chinese consumers’ needs and always staying relevant. And it has to be scalable at the same time. We have a solid management team and our reputation of being professional, reliable and accountable attracts many brands from overseas to want to work with us to expand in China.”

On the topic of food safety, Tay adds, “food safety is of paramount concern in China. YPX will not compromise on food safety for the sake of growth as these two important objectives are not contradicting. We can do both. A high moral standard and superior transparent management culture are held in very high esteem in YPX.”

Mr. Daniel Tseung, MD of LionRock Capital, says, “We are delighted to have a Maybank associated fund as the lead investor in the latest Series D round and look forward to working with Maybank PE, other YPX shareholders, and the company management team in strengthening YPX leading position in the Quick Service Restaurant industry in China.”

Mr. Rich Tong of Ignition Partners says, “This latest investment shows that YPX is one of the best teams in the highly competitive food and beverage market. We congratulate them on this great milestone.”

About YPX www.ypxfood.com

Founded in Shanghai in 2010, YPX Cayman focuses on the management of casual F&B chains in China. CLOUD 9, the Company’s first brand, mainly focuses on the Taiwanese casual F&B and snacks segment. The brand now has more than 40 stores across China including Shanghai, Beijing, Tianjin, Hangzhou, Nanjing, Changzhou, and Hefei. The Company’s management team has a combined F&B chain management experience of over 80 years, having worked in brands like KFC, McDonald’s, Burger King, Dicos, Dairy Queen and Yoshinoya. The Company aims to be a leading casual F&B platform in China.

About Maybank PE www.maybank-am.com

Maybank PE is a wholly owned subsidiary of Maybank Asset Management Group Berhad (“MAMG”), which in turn is a wholly owned subsidiary of Malaysian Banking Berhad (Maybank). Maybank PE targets minority investments in the consumer and consumer related segments across the Asian region.

Its parent, MAMG, is Maybank’s asset management business unit and offers investors a diverse range of investment solutions. MAMG has in-depth experience in managing investments ranging from equity, fixed income to money market instruments mainly on behalf of and for corporations, institutions, insurance and takaful companies and individual clients. In addition to that, MAMG also offers unit trust and wholesale funds. It has regional footprint and on-the-ground presence in key markets of the region – Malaysia, Singapore, Thailand and Indonesia.

About LionRock Capital http://www.lionrockcapitalhk.com

LionRock Capital provides strategic, financial, and corporate governance support for growth stage companies in Greater China. It is supported by some of the world’s most successful entrepreneurs and family organizations, who also serve as valuable resources for LionRock’s investee companies and investment partners. LionRock seeks to build active, value-added, long-term relationships with company management teams and investors; its Managing Directors & Senior Advisors are internationally recognized leaders in business, investment, and corporate governance. The firm’s team of seasoned Asian professionals has a demonstrated track record of successfully helping management teams build & develop their businesses in Greater China and beyond.

About Ignition Capital http://www.igncap.com

Ignition Capital is the growth equity arm of a $3 billion global fund group which provides emerging industry leaders the investment and operations support to help them reach their long-term potential, in the technology, communications, consumer and healthcare sectors. Over the last 14 years, they’ve been working with a broad array of companies that have become market leaders in technology, telecommunications, consumer services and healthcare. They have seen their companies deal with difficult economic situations while still growing dramatically to either become public companies, or be sold to larger market leaders.

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HONG KONG, Aug. 21, 2014 /PRNewswire/ —

  • Revenue Increased by 44.4% to RMB556.0 Million
  • Net Profit Surged 150.1% to RMB249.1 Million
  • Basic Earnings per Share Increased by 61.9%

* * * * * * * * * * *

  • Continuous Expansion in Overall Herd Size
  • Increase in Production and Sales Volume
  • Benefited from Long-term National Policy
  • Capture Business Development Opportunities

* * * * * * * * * * *

Financial Highlights

For the Year Ended 30 June (RMB MM)

2014

(Unaudited)

2013

Changes

Revenue

556.0

385.1

+44.4%

Gross profit

260.6

150.5

+73.2%

Gross profit margin

46.9%

39.1%

+7.8ppt

Net Profit

249.1

99.6

+150.1%

Basic Earnings per Share

6.8 cents

4.2 cents

+61.9%

YuanShengTai Dairy Farm Limited (“YuanShengTai” or the “Company” and, together with its subsidiaries, the “Group”) (Stock Code: 1431), a leading dairy farming company in China, reported a revenue of RMB556.0 million for six month ended 30 June 2014 (the “period”), up 44.4% (1H2013: RMB385.1 million). The increase was attributable to the increase in the production of raw milk while gross  profit margin increased by 7.8 percentage points to 46.9% (1H2013: 39.1%). During the period, net profit surged by 150.1% to RMB249.1 million (1H2013: RMB99.6 million) with basic earnings per share of approximately RMB6.8 cents (1H2013: RMB4.2 cents).

During the period, benefited from the rising average price of high-quality raw milk and continuous expansion in overall herd size which led to the increase in production, the Group’s business recorded a significant growth. In 1H2014, the sales volume reached 105,640 tons, representing a strong growth of 24.2% (1H2013: 85,079 tons).

Mr. Zhao Hongliang, Executive Director and Chairman of YuanShengTai, said, “The Chinese government has implemented a number of policies to support the development of large-scale farms at national and regional levels in the first half of 2014, including tax incentive and government subsidy for the reconstruction and expansion of standardized management of large-scale farms, which contributed to the transition from extensive farming to standardized large-scale farming. Benefited from the national policy and the increasing demand for high quality raw milk, we are confident toward the long-term business development of the Group. Looking forward, the Group will capture the opportunities in developing China’s dairy products industry, especially the high-end raw milk industry, to maintain a sustainable business growth. The Group dedicated to becoming a national leading supplier of premium raw milk in order to maximize returns to our shareholders.”

Business Review

As the leading dairy farming company in China, YuanShengTai is dedicated to production and sales of premium raw milk. During the period, the number of dairy cows across all four of YuanShengTai’s dairy farms increased from 40,396 as of 31 December 2013 to 42,836 as of 30 June 2014. The total number of milkable cows increased from 21,544 for 2013 to 24,505 for the first half of 2014. The increase in the number of matured milkable cows in herd has enabled the Group to produce more raw milk. During the period, the average annual milk yield per cow was 9.38 tons, representing an increase of 4.2% (1H2013: 9.0 tons). It is expected that the average milk yield per cow will further increase with the maturity of the farms and a more balanced age group of herd.

Due to the rising demand for high quality raw milk, the average selling price of the Group’s quality raw milk increased 16.3% from RMB4,527 per ton in 1H2013 to RMB5,263 per ton in 1H2014.

During the period, the Group maintained long-term and stable relationships with customers including the four leading dairy products manufacturers in China namely Feihe Dairy Group, Mengniu Group, Bright dairy Group and Yili Group. Feihe and Mengniu have been purchasing premium raw milk from the Group for their production of high-end dairy products since the commencement of the Company.

YuanShengTai has been exploring the development of selenium-rich raw milk with certain research institutions in order to increase the value of the products and thus meet the user’s demand for raw milk with superior quality. The Group will further cooperate with the research institutions, and after satisfaction of relevant tests, the selenium-rich raw milk can be put into commercial production.

Prospects

Looking ahead, the continuous rise in per capita income and consumption levels of residents in the PRC and their growing concerns about health will continue to increase demand for high quality raw milk. The strengthened regulations enforced by relevant regulatory authorities help to promote integration of the industry, and will also be beneficial to the growth of market share for enterprises producing high quality raw milk. Besides, with the Chinese government’s easing measures on the ”One Child Policy”, the space for the development of dairy products industry will be further expanded, creating favorable opportunities for continuous growth of the Group.

With advanced herd management techniques, a large scale of herd, privileged geographic environment and favorable government support policies, the Group will further expand the business scale of its super large dairy farms. The Kedong Yongjin Farm, which will have an actual designed capacity of 12,000 dairy cows, is under construction and will be put into service in the fourth quarter of 2014. The construction of Baiquan Farm, which will have an actual designed capacity of 15,000 dairy cows, is scheduled to commence in the second half of 2014. It is expected to be in service in the fourth quarter of 2015. In addition, the Group is planning to build another three farms in the Songnen Plain in the next three years, two of which will be named the Keshan Farm and the Gannan Farm, with a view to replicating the business model of operating mega scale dairy farm. Among these new farms under construction, some of them will be established as organic dairy farms in the future. As scheduled, the Group will increase its total herd size to 100,000 by 2017. Fueled by the expansion of the Group’s business scale, the milk production and sales volume are anticipated to experience further increase, while the operational efficiency will be improved and the management of dairy farms will be optimized. The Group’s advantage in terms of economies of scale is expected to be consolidated as a result of these favourable developments.

The Group will also explore opportunities to cooperate with overseas suppliers of dairy feed. The technologies of feeding, breeding and producing to improve production efficiency will continue to be enhanced. Meanwhile, the Group will take efforts to expand the business to upstream business through long-term cooperation with local agricultural companies to diversify revenue sources, so as to further strengthen the Group’s position as China’s leading dairy farming company.

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About YuanShengTai Dairy Farm Limited

Listed on 26 November 2013 on the Main Board of the Hong Kong Stock Exchange, YuanShengTai is a leading dairy farming company in China dedicated to the production of super-premium raw milk. The Company ranked No. 5 in China in terms of herd size as of 31 December 2012 and No. 4 in China in terms of raw milk production volume in 2012. The Company operates a total of 4 dairy farms, 3 in Heilongjiang and 1 in Jilin, raising a total of 42,836 dairy cows, with half-year sales volume 105,640 tons of high quality raw milk as of 30 June 2014. The standardized farming methods have enabled the Group to consistently produce raw milk of a quality that surpasses the EU raw milk quality standard, which is among the highest industrial standards for raw milk and other dairy products in the world. In further, YuanShengTai will continue to provide high quality to Chinese consumers through unified farm operations by implementing uniform farm designs and layouts, systematic operating procedures, centralized management functions and automated information systems.

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