SOURCE: China Swine Genetics, Inc.

China Swine Genetics, Inc.

February 18, 2010 17:45 ET

China Swine Genetics (CSWG) Reports Revenue of $44.9 Million and Net Income of $7.8 Million for the Six Months Ended December 31, 2009

HARBIN, CHINA--(Marketwire - February 18, 2010) - China Swine Genetics, Inc. (OTCBB: CSWG) is pleased to announce its financial results for the second quarter ended December 31, 2009.

For the second quarter ended December 31, 2009, CSWG reported revenues of $23.0 million, an increase of 55% over the $14.9 million for the comparable quarter in fiscal 2009. Net Income for the second quarter of fiscal 2010 reached $4.2 million, an increase of 149% over the net income of $1.7 million for the comparable quarter in fiscal 2009. 

For the six months ended December 31, 2009, revenue reached $44.9 million, an increase of 70% over the first six months of fiscal 2009. For the six months ended December 31, 2009, net income reached $7.8 million, an increase of 141% over the first six months of fiscal 2009. 

CSWG also reported substantial improvement in gross margins. During the quarter ended December 31, 2009, gross margins were 23%, which compares favorably to the year earlier quarter when gross margins were 16%. For the six months ended December 31, 2009, gross margins were 22%, as compared to 18% for the six months ended December 31, 2008. The improvement in gross margins can be attributed primarily to a reduction in the cost of fodder.

Commenting on the Company's results, Mr. Zhenyu Shang, CEO of China Swine, stated, "We are very pleased with our second quarter and year-to-date results. Our rapid growth not only underscores the strong demand for our unique mix of breeding swine, but is a testament to our management team and the scalability of our business model. 

About CHINA SWINE GENETICS, INC.
China Swine Genetics, Inc., through its wholly-owned subsidiaries and joint venture partner, is engaged in the business of breeding and raising hogs and piglets, then distributing them to slaughter facilities and pork distributors in the People's Republic of China (PRC). China Swine's objective is to establish itself as a leading producer and distributor of commercial hogs and piglets in the PRC. 

Forward Looking Statement:
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the Company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. Risks and uncertainties applicable to the company and its business could cause the company's actual results to differ materially from those indicated in any forward-looking statements.

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