China Minzhong Food Corporation

[Nick]

CHINA MINZHONG’S 3QFY2011 NET PROFIT NEAR DOUBLED TO RMB261.1 MILLION ON ROBUST VEGETABLES DEMAND

 9MFY2011 net profit of RMB469.8 million has surpassed full year net profit of RMB367.5 million in FY2010

 3QFY2011 revenue grew 34.3% to RMB703.9 million, underpinned by growth in both fresh vegetables produce and processed vegetables segments

 Improvement in 3QFY2011 gross margin by 5.8ppt to 47.0% while net margin increased by 11.3ppt to 37.1%

 Since IPO, Group has more than doubled vegetable farmland area to capitalize on growing demand for vegetables

http://info.sgx.com/webcoranncatth.nsf/V...80039B3D8/$file/Minzhong3QFY2011PressRelease.pdf?openelement [Press Release]

http://info.sgx.com/webcoranncatth.nsf/V...8003892EC/$file/3Q2011Minzhong-9May11.pdf?openelement [SGX Announcement]

http://info.sgx.com/webcoranncatth.nsf/V...80038552E/$file/Presentation_Slides_final.pdf?openelement [PPT Slides]

A very good set of results with a clear expansion plan ready to fuel its profit growth over the next few years. Management believes the current correction in vegetable prices will be short lived and have minimal impact on their profitability since they deal with higher end products. The continued urbanization, rising global population and demand for healthier food products should benefit the Company. As always, black swan events like natural disasters may cripple its production ability.

(Vested)