SOURCE: Sen Yu International Holdings, Inc.

Sen Yu International Holdings, Inc.

July 11, 2011 07:00 ET

Sen Yu International Holdings Sees Benefits as Pork Prices Continue to Rise

Company Expects Strong Pricing to Help Increase Breeders' Profits and Growth

JIAMUSI CITY, CHINA--(Marketwire - Jul 11, 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, commented today that rising pork prices are expected to help increase breeders' profits and support growth as farmers are encouraged to replenish hog stocks and increase supply.

The average wholesale price of pork reached 24.8 yuan ($3.86) a kilogram last Tuesday, July 5, at the Beijing Xinfadi Farm Product Wholesale Market, a three-year high since the middle of 2008, according to a report from China's Global Times on July 6, 2011. The average price of lean pork between June 21 and June 30 reached 30.58 yuan a kilogram, 5.3% higher than that of June 11 to June 20. The price of pork belly rose by 5.4% during the same period, the largest increase since early February, according to data from the National Bureau of Statistics on food prices in 50 Chinese cities as of Monday, July 4, 2011.

Observers believe that pork prices will keep rising until the end of the year. Higher prices are being driven by insufficient pork stock and a pig epidemic from late 2010 to early 2011 and are also linked to an increase in the price of corn, which accounts for roughly 60% of pig feed. After the Chinese New Year, supplies of pork diminished as most stored pork was sold during this peak season. June is typically the low season for pork sales and a time to replenish pork stock, which has contributed to tightening pork supply. As the hog breeding industry requires a period of production cycle recovery, it is expected that pork prices will remain stubbornly high in the near term. Pork accounts for roughly 65% of China's meat consumption.

"In the near term, higher pork prices will lead to increased profits for breeders," commented Mr. Zhenyu (Jack) Shang, Founder, Chairman and CEO of Sen Yu International Holdings, Inc. "Sen Yu has a well-established brand and is the leading commercial hog breeder and supplier in Heilongjiang Province. Under our partnership-based business model, this could increase the number of hog farmers that we work with while the increases in average prices of commercial hogs support higher revenue, gross profit and increases in gross margins that we have experienced. Though we expect pork prices to fluctuate over time as increases in supply come into the market, we believe that China's economic expansion and rising middle class with its taste for high quality pork will continue to spur demand for our superior quality breeding and commercial hogs for the long term."

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. For the fiscal year ended June 30, 2010, the Company sold approximately 390,000 commercial hogs in the Beijing market. 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
    E-mail: Email Contact
    Website: www.hamptongrowth.com