SHISHI, China, Oct. 11 /PRNewswire-Asia-FirstCall/ -- China Marine Food Group Ltd. (NYSE Amex: CMFO), a China-based manufacturer of Mingxiang® seafood-based snack foods, "Hi-Power" marine algae-based beverages, and distributor of frozen marine catch, today provided a summary of its Analyst and Investor Day held in Xiamen and Shi Shi on September 30th, 2010.
As announced in the press on September 8, 2010 and previous SEC filing, China Marine hosted an Analyst and Investor Day held on September 30 in Xiamen and Shi Shi in conjunction with the Company's 2010 Shareholder meeting at the Seaview Resort in Xiamen, China. Several investors and analysts attended the events, which included visits to retail stores in Xiamen where the Company's products are sold, tours of the Company's food and beverage manufacturing plants and a visit to the construction site at the Company's planned cold storage facility. China Marine has posted pictures of the events that day on its Website, www.china-marine.cn under the "Investor Day" section of the "Product Centre" tab. Specific links to each picture are also provided in the summary below.
Retail Site Visits with Mingxiang® and "Hi-Power" Distributors and Sales Teams:
The Analyst and Investor Day began with a guided tour by the Company management team, China Marine sales managers and one of the Company's Xiamen-based distributors. The group was lead through the aisles of Zhongmin Baihui Department Store, a retail food and beverage location in Xiamen, China which sells Mingxiang®-branded foods. Mingxiang® snack-foods were prominently displayed in the snack food isle of the location. As is the case in most food retail stores, snack foods represent one of the highest margin products that Zhongmin Baihui Department Store sells to consumers. China Maine sales teams detailed which products are sold in the store and the price points for each product compared to other snack food choices available for consumers.
China Marine sales teams and their distributor also explained the "healthy snack food" sales and marketing approach the Company has successfully used to differentiate its products on retail shelves. By advertising the benefits of seafood snack foods as a healthy alternative to other high-carbohydrate and high-calorie snack foods for sale, Mingxiang® is one of the only seafood-based foods on the shelves of snack food aisles in retail stores in Xiamen.
Following the overview of Mingxiang® snack foods, the group was escorted to Walmart® and Hualian Department Store in Xiamen, which are two of the 10,000-plus retail stores selling "Hi-Power" marine algae-based beverages. Located toward the front of each store and prominently featured, a "Hi-Power" end cap display was on display compete with "Hi-Power" signage and single serve and case-pack of "Hi-Power" beverages for sale.
"Hi-Power" beverages sell for approximately RMB 3.50 per can and RMB 42.0 per case of 12 cans.
Manufacturing Facility Tours
China Marine manufacturers its seafood snacks at its dedicated 20,000 ton production facility in Shi Shi. Seafood harvested from the local port are cleaned, portioned, seasoned, dried and packaged at the Shi Shi facilities by approximately 300 factory workers working for two shifts, 7 days a week. The 20,000 ton facility is currently operating at about 50% utilization rate. As a HAACP approved facility, workers are required to work in a clean environment with strict control at decontamination stations. From an observation deck overlooking the factory floor, analysts and investors were able to see workers completing production runs on the processing floor.
Also located on the observation deck is a showroom used to demonstrate to distributors and retailers suggested point of sale and promotion ideas for Mingxiang® foods and "Hi-Power" beverages. In total, China Marine produces 29 varieties of seafood jerky at its facilities which it sells to 19 exclusive distributors in 7 provinces throughout China.
Guests were encouraged to try a variety of China Marine foods and beverages. The most popular for international guests from the US has been the dried BBQ Shrimp Mingxiang® product.
"Hi-Power" beverages are manufactured and canned at two of Fujian's top bottling facilities. In one of these bottling facilities, a factory production manager showed investors the sorting phase of the production run of "Hi-Power" beverages.
"Hi-Power" beverages are then palletized and shipped to distributors directly from the bottling facility. Orders received are produced and shipped within a month.
Cold Storage Facility Tour and Update
China Marine experienced a delay to its previously reported construction schedule due to the building approval process and registration with the local government and provincial representatives. As reported on the Company's second quarter conference call, the Company now expects the cold storage facility to be operational in the second half of 2011. Construction of the foundation of the facility is underway beginning with the foundation of the multi-storey cold storage facility.
The cold storage facility will provide chipped ice, ambient cold storage and blast freezing services for business in the local fishing port and serve as a main cold storage facility for China Marine's current operations and frozen marine catch business segments. Once fully operational, the Company anticipates additional earnings of $4.0 million on an annual basis from their new business segment.
"We appreciate everyone who joined us for our Shareholders' Meeting and Investor Day last month," began Chairman Liu of China Marine. "For some of the attendees, it was their first time in Fujian province and probably the first time they have visited one of their investments in Asia. I hope they left with a better understanding of why we're so excited about our future. In addition to meeting with investors in the US, we are happy to host any current or prospective shareholders in China. We look forward to updating all of our investors on the Company's progress again soon," Liu concluded.
About China Marine
China Marine Food Group Ltd. is a food and beverage manufacturer of Mingxiang® seafood-based snack foods and "Hi-Power" marine algae-based health drinks, and a wholesaler of frozen marine catch in seven provinces in the PRC. Founded in 1994, China Marine has grown steadily and positioned its Mingxiang® brand as a category leader in 2,900 retail sales points in the PRC. The Company has received "The Famous Brand" and "Green Food" awards. Located in Fujian province, it is one of the largest coastal provinces in the PRC and a vital navigation hub between the East China Sea and the South China Sea. The Company is committed to the highest standard of quality control with the ISO9001, ISO14001, HACCP certification and EU export registration.
FORWARD LOOKING STATEMENTS
This release contains certain "forward-looking statements" relating to the business of China Marine Food Group Limited and its subsidiary companies, which can be identified by the use of forward-looking terminology such as "believes, expects" or similar expressions. Such forward looking statements involve known and unknown risks and uncertainties, including all business uncertainties relating to product development, marketing, concentration in a single customer, raw material costs, market acceptance, future capital requirements, competition in general and other factors that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Certain of these risks and uncertainties are or will be described in greater detail in our filings with the Securities and Exchange Commission. China Marine Food Group Limited is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.
For more information, please contact:
Marco Hon Wai Ku, CFO
Suite 815, 8th Floor
Ocean Centre, Harbour City
Kowloon, HONG KONG
John Mattio, SVP
HC International, New York
Tel: +1-203-616-5144 (U.S.)
SOURCE China Marine Food Group Limited