SOURCE: Sen Yu International Holdings, Inc.

Sen Yu International Holdings, Inc.

May 26, 2011 07:00 ET

Sen Yu International Holdings, Inc. Sees Benefits From Rising Hog Prices

Company Expects Strong Pricing for Hogs to Help Further Increase Breeders' Profits

JIAMUSI CITY, CHINA--(Marketwire - May 26, 2011) - Sen Yu International Holdings, Inc. ("Sen Yu International" or the "Company") (OTCBB: CSWG), a leading commercial hog breeder and supplier in Heilongjiang Province, the People's Republic of China, today commented that it expects rising hog prices to help increase breeders' profits and expects solid long-term demand for its commercial breeding hogs based on rising consumption by Chinese consumers.

Dow Jones Newswires reported last week that high hog prices are underpinning rising U.S. pork exports to China and a swift expansion of domestic hog herds this year, with Chinese piglet prices rising 50% so far to three-year highs, according to a note released by the U.S. Department of Agriculture on May 19, 2011. China's retail pork prices are at their highest levels since summer 2008, the USDA's Beijing-based Foreign Agriculture Service (FAS) said. Weak domestic prices in the first half of 2010 and diseases reduced Chinese herds sharply, prompting a pork shortage in the country that is likely more severe than officially acknowledged, according to the FAS.

The increases in nationwide pork prices accelerated last month when some farms in one of the country's major pig breeding areas were reported to have fed pigs with an illegal drug to promote production of lean meat. China's largest meat processor found that some of its pigs in Henan and other farms had been affected by the lean-meat producing drugs and subsequently shut down the processing facility. This helped to worsen the supply shortage and pushed prices higher. According to a recent report in Want China Times, rising feed and labor costs, along with supplies that fall short of market demands, are likely to keep pig and pork prices at higher levels during the second quarter of this year, and even reach a new high later in 2011.

"Though higher prices for pork will likely encourage more hog farmers to enter the industry, Sen Yu has a well-established brand and is the leading commercial hog breeder and supplier in Heilongjiang Province," commented Mr. Zhenyu (Jack) Shang, Founder, Chairman and CEO of Sen Yu International Holdings, Inc. "In our most recent fiscal third quarter, we experienced higher revenue and gross profit and very significant increases in gross margins due to strong increases in average market prices for commercial hogs. As a result, gross margin in the fiscal third quarter increased 27.2% versus 17.9% for the same period last year, and net margin rose to 19.3% versus 9.7% a year ago. While prices may fluctuate over time, we believe that strong demand from Chinese consumers for high quality pork coupled with rising domestic incomes and economic expansion will stimulate even greater demand for our superior breeding and commercial hogs."

About Sen Yu International Holdings, Inc.

Sen Yu International Holdings, Inc. (OTCBB: CSWG), through its subsidiaries, is the largest commercial hog breeder and supplier in Heilongjiang Province, the People's Republic of China (PRC). Founded in 2004 and based in Jiamusi City, the Company owns and operates two farms in Heilongjiang Province with an aggregate annual capacity of over 11,000 breeding hogs. The Company also conducts genetic and breeding research to improve pork production capabilities.

To be added to the Company's email distribution for future news releases, please send your request to robert.haag@hamptongrowth.com.

Safe Harbor Statement

Certain statements in this release concerning our future growth prospects are "forward-looking statements," which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. Such statements may include, without limitation, statements with respect to the Company's plans, objectives, projections, beliefs, expectations and intentions and other statements identified by words such as "guidance," "projects," "may," "could," "would," "should," "believe," "expect," "anticipate," "estimate," "intend," "plan," or similar expressions. These statements are based upon the current beliefs and expectations of the Company's management and are subject to significant risks and uncertainties (many of which are beyond the Company's control), including, but not limited to, risks and uncertainties regarding the success of our investments, risks and uncertainties regarding fluctuations in earnings, our ability to sustain our previous levels of profitability including on account of our ability to manage growth, intense competition, wage increases in China, our ability to attract and retain highly skilled professionals, client concentration, our ability to successfully complete and integrate potential acquisitions, withdrawal of governmental fiscal incentives, political instability and regional conflicts and legal restrictions on raising capital or acquiring companies outside China. Additional risks that could affect our future operating results are more fully described in our filings with United States Securities and Exchange Commission. These filings are available at www.sec.gov.

We may, from time to time, make additional written and oral forward-looking statements, including statements contained in our filings with the Securities and Exchange Commission and our reports to shareholders. We do not undertake to update any forward-looking statements that may be made from time to time by us or on our behalf.

Contact Information

  • Investor Relations Contact:
    Robert Haag
    Managing Director, Asia
    Hampton Growth, LLC (HGR)
    Tel: +86-152-2174-3282
    Tel: +1-877-368-3566
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    Website: www.hamptongrowth.com