Pingtan Marine Enterprise Announces Intention to Sell Directly to Customers
FUZHOU, China, Dec. 18, 2013 /PRNewswire/ -- Pingtan Marine Enterprise Ltd. (Nasdaq: PME), ("Pingtan," or the "Company") an integrated marine services company in the People's Republic of China (PRC), today announced that the Company's Board of Directors has approved a resolution in which Pingtan will begin negotiating with the Fujian Provincial People's Government of People's Republic of China to acquire operating rights for a parcel of land in which it intends to construct a fish processing plant. The Company intends to become a vertically integrated provider of seafood products and intends to build and utilize this new fish processing plant to sell directly to end markets by the end of 2015.
Based on the Company's current projections, Pingtan expects to report net income of between $40 and $43 million (excluding the discontinued dredging business) for the year ending December 31, 2013 and between 80 and $85 million for the year ending December 31, 2014. This guidance is based on the current expected timeline for each vessel to operate at full capacity, taking into account maintenance and dry-docking requirements for certain vessels, strong continued demand, and the payment of current debt obligations. The Company notes that this guidance does not include any net income related to this project for the year ending December 31, 2014.
The Company's Chairman and CEO, Mr. Xinrong Zhuo, stated, "We are excited about this expanded strategy. The demand for fish in China is expected to continue its rapid growth, and we feel that through this strategy Pingtan will have the scale to begin executing on all aspects of the selling process. Currently Pingtan relies on processors and has been paid strictly on the tonnage of fish that our vessels caught. Going forward, we feel that once we begin selling downstream directly to end markets we will speed the process of getting our products to market while also increasing our profitability."
Pingtan is a marine enterprises group, engaging in ocean fishing through its wholly-owned subsidiaries, Fujian Provincial Pingtan County Ocean Fishing Group Co., Ltd., or Pingtan Fishing. Pingtan Fishing primarily engages in ocean fishing with many of its self-owned vessels operating within the Indian Exclusive Economic Zone and the Arafura Sea of Indonesia. Pingtan Fishing is a growing fishing company and provider of high quality seafood in the PRC.
Business Risks and Forward-Looking Statements
This press release may contain forward-looking statements that are subject to the safe harbors created under the Securities Act of 1933 and the Securities Exchange Act of 1934. Readers are cautioned that actual results could differ materially from those expressed in any forward-looking statements. In addition, please refer to the risk factors contained in the Company's SEC filings available at www.sec.gov, including the Company's most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Definitive Proxy Statement and Registration Statement on Form S-3. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date on which they are made. Pingtan undertakes no obligation to update or revise any forward-looking statements for any reason.
Chief Financial Officer
Pingtan Marine Enterprise Ltd.
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The Equity Group Inc.
Adam Prior, Senior Vice President
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SOURCE Pingtan Marine Enterprise Ltd.