DGAP-Adhoc: Haikui Seafood revises outlook for 2013 due to challenging market environment

Haikui Seafood AG / Key word(s): Preliminary Results/Forecast

25.07.2013 17:30

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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Haikui Seafood revises outlook for 2013 due to challenging market
environment

Frankfurt am Main, July 25, 2013 - On the basis of the challenging market
environment impacting on the preliminary figures for H1 2013, Haikui
Seafood revises its outlook for the full financial year 2013.

The challenging market conditions continued to prevail in Q2 2013 and had a
negative impact on Haikui Seafood's results for H1 2013. Based on
preliminary figures, revenue decreased by 12.7 per cent to 69.4 million
Euros (H1 2012: 79.5 million Euros). As a result of a lower revenue and
gross margin as well as higher distribution and administrative expenses,
Haikui's earnings before interest and taxes (EBIT) went down by 39.1 per
cent to 9.7 million Euros (H1 2012: 16.0 million Euros) representing an
EBIT margin of 14.0 per cent (H1 2012: 20.1 per cent).

The stronger market competition led to higher raw material costs as well as
an increase in direct labour wages, which could not be fully passed on to
the customers. Due to the heightened competitive situation, Haikui had to
lower its selling prices to compete effectively and retain its customers.
Furthermore, export sales of all Chinese seafood processing companies were
delayed due to the longer time taken by China Inspection & Quarantine
Authorities (CIQ) to inspect the end product quality. The resulting
slowdown in export shipments had negatively affected Haikui's revenue.

Given the expected slowdown in the global and Chinese economy, the
increasing competition and the preliminary H1 2013 results, Haikui Seafood
has revised its outlook for the full year 2013. Haikui currently forecasts
revenue to decrease by around 20 per cent in RMB terms as compared to 2012
with an EBIT margin of approximately 14 per cent. Previously, Haikui had
expected revenue to grow by 5 per cent in RMB terms as compared to 2012 and
EBIT margin to reach around 15 per cent for the full financial year 2013.

Haikui Seafood will publish its half-year report 2013 on August 21, 2013.

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Information and Explaination of the Issuer to this News:

About Haikui Seafood AG

Haikui Seafood processes fish and seafood for the Chinese and international
markets. Its products range includes frozen or canned fish and seafood,
produced from a large variety of species of raw fish and seafood, including
prawn, crab, various fish species and shellfish as well as cephalopods.
Clients of Haikui Seafood are distributors in China and overseas, located
mainly in Asia, the U.S. and Europe. Haikui Seafood employs around 700
permanent employees and on average around 1,500 additional temporary
workers. The company has an annual processing capacity of more than 34,000
tonnes (output). The processing facilities are located in the South-East of
China on Dongshan Island, Zhangzhou, Fujian Province. Haikui Seafood
operates a streamlined supply chain including self-owned processing
facilities, in-house research and product development capacities as well as
warehousing and cold storage facilities while simultaneously cooperating
closely with raw goods suppliers.

For further information please visit www.haikui-seafood.com or contact

Kirchhoff Consult AG
Anja Ben Lekhal
Phone: +49 (0)40 609 186 55
anja.benlekhal@kirchhoff.de

Disclaimer concerning prognoses

This communication contains forward-looking statements. Forward-looking
statements are statements that are not historical facts instead they
reflect Haikui Seafood's current views and expectations and the assumptions
underlying them about future events. Forward-looking statements are subject
to many risks and uncertainties. If any of such risks and uncertainties
materialise or if the assumptions underlying any of Haikui Seafood's
forward-looking statements are proving to be incorrect, Haikui Seafood's
actual results may be materially different from those expressed or implied
by such forward-looking statements. Haikui Seafood does not intend or
assume any obligation to update these forward-looking statements. Any
forward-looking statement speaks only as of the date on which it is made.

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Language: English
Company: Haikui Seafood AG
c/oAshurst,OpernTurm,Bockenh.Landstr.2-4
60306 Frankfurt am Main
Germany
Phone: +49 40 60 91 86 - 0
Fax: +49 40 60 91 86 - 60
E-mail: haikui@kirchhoff.de
Internet: www.haikui-seafood.de
ISIN: DE000A1JH3F9
WKN: A1JH3F
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf

End of Announcement DGAP News-Service

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