Sen Yu Intl (CSWG) research, news, and more from GeoInvesting

Company description

Tue, 25 Aug 2009 04:00:00 GMT

Heilongjiang SenYu Animal Husbandry Co., Ltd. (“SenYu”) is a commercial hog breeding and distribution company that was founded in September 2004 under the laws of the People’s Republic of China with registered capital of 80 million RMB (US$11.7 million).

SenYu engages in the business of breeding and raising commercial hogs and piglets, then distributing them to slaughter facilities and pork distributors in the PRC. SenYu develops high quality breeding sows on its own facilities, then sells the sows at cost to farmer franchisees who will nurture the sows’ piglets until they are marketable. SenYu provides fodder to the farmers, as well as the equipment and techniques for artificial insemination. When the piglets mature, SenYu purchases them from the farmers at a pre-determined price, if they meet SenYu’s quality control standards. SenYu then distributes the mature hogs to slaughter facilities, pork distributors, and other customers throughout the PRC.

In 2006, we formed a joint venture with Polar Genetics, Inc., a Canadian company that focuses on supplying superior quality Canadian breeding swine, semen and artificial insemination equipment, supplies and technology to swine producers. The Joint Venture is called Sino-Canadian Senyu-Polar Swine Genetics Company Limited (“Sino-Canadian”), and was organized under the laws of the PRC.

SenYu commenced operations in 2004, and has grown to be the leading commercial hogs and piglets producer and distributor in northeast China.

Comments & Business Outlook

Thu, 29 Sep 2011 04:00:00 GMT

Fiscal 2011 Highlights

Total revenue increased 41.8% to a record $99.8 million from $70.4 million
Gross profit increased 84.6% year-over-year to $25.9 million from $14.0 million
Gross margin increased to 26.0% from 20.0% on increased sales and strong increases in the average market price for hogs
Adjusted net income, which excludes a gain in the fair value of warrants, increased 202.2% to $18.9 million, or $0.73 per diluted share, versus $6.3 million, or $0.41 per diluted share, for the same period last year, which excludes a non-cash expense related to the fair value of warrants for the fiscal year 2010
Net income increased to $36.1 million, or $1.40 per diluted share, from $4.3 million, or $0.29 per diluted share, for the fiscal year ended June 30, 2010

"We experienced record revenues and profits in fiscal 2011 based on strong demand for our high quality breeding and commercial hogs," stated Mr. Zhenyu (Jack) Shang, Founder, Chairman and CEO of Sen Yu International Holdings, Inc. "Increased orders from our two major customers, Beijing Dahongmen and Beijing Fifth Meat Factory, resulted in revenues increasing to $99.8 million for the year compared to $70.4 million in revenue for fiscal 2010. Overall, our hog sales increased by 106,773 head to 504,028 head in fiscal 2011, compared to 397,255 at the end of fiscal 2010. We achieved higher margins in fiscal 2011 due to strong increases in average market prices for commercial hogs that led to higher unit sales prices. We believe our efficient business model and advanced breeding techniques, coupled with the demand we see for our products, will help us to continue to capture market share and drive our future growth."

Business Outlook

"We see significant growth for our industry going forward and believe that strong demand from Chinese consumers for high quality pork coupled with rising domestic incomes and economic expansion will stimulate even greater demand for our high quality breeding hogs," commented Mr. Shang. "The market for breeding and commercial hogs is becoming very attractive to foreign investors as China is the world's largest consumer of pork and produces some 50 million tons of pork every year to feed a population of over 1.3 billion. We continue to expand our production and refine our breeding techniques to meet the rising demand from China's middle class. Going forward, we believe pork consumption and production will continue to rise and that Sen Yu is well positioned to capture greater revenue and profit."

CFO Trail

Sat, 11 Jun 2011 04:00:00 GMT

On June 6, 2011, Mr. Paul Li submitted to Sen Yu International Holdings, Inc. (the “Company”) his resignation as Chief Financial Officer of the Company, which becomes effective on August 5, 2011. Mr. Li stated in his resignation letter that his resignation was not due to any disagreement with the Company.

Deal Flow

Fri, 03 Jun 2011 04:00:00 GMT

On May 27, 2011, Sen Yu International Holdings, Inc. entered into a subscription agreement with four non-U.S. individual investors, pursuant to which the Company sold an aggregate of 804,000 shares of the Company’s common stock, par value $0.001 per share at $1.50 per share for total gross proceeds of $1,206,000. No placement agent was utilized in connection with the May 2011 Private Placement. The issuance of the Shares was made in reliance on the exemption from registration provided by Regulation S of the Securities Act of 1933, as amended, as an offshore transaction involving non-U.S. persons.

Comments & Business Outlook

Tue, 17 May 2011 04:00:00 GMT

Third Quarter 2011 Highlights

Total revenue increased 36% to $20.3 million from $14.9 million a year ago
Gross profit increased 107% to $5.5 million from $2.7 million a year ago
Gross margin increased to 27.2% from 17.9% in the same period last year on increased sales and strong increases in the average market price for hogs
Operating expenses were $1.6 million, up from $1 million in the same period last year
Operating income rose 139% to $3.9 million from $1.6 million a year ago
Adjusted net income, which excludes a non-cash expense related to the change in fair value of warrants for the third quarter of 2011, was $3.9 million, versus $1.4 million for the same period last year, last year there was no such non-cash expense relating to fair value of warrants
Adjusted EPS was $0.16 vs. $0.08
Net income was $55,696, or $0.00 per diluted share
Working capital increased 85% to $37.8 million at March 31, 2011, from $20.5 million at June 30, 2010
Shareholders' equity inclusive of noncontrolling interest increased 77% to $39.6 million at March 31, 2011, from $22.5 million at June 30, 2010

"We experienced higher revenue and gross profit in what is typically a slower season following the Chinese holidays," stated Mr. Zhenyu (Jack) Shang, Founder, Chairman and CEO of Sen Yu International Holdings, Inc. "This was driven by increased orders from our two major customers, Beijing Dahongmen and Beijing Fifth Meat Factory, resulting in solid revenue increases and a 107% increase in gross profit for the quarter. Hog sales increased by 13,761 head over the third quarter of last year. Going forward, we believe that our efficient business model, coupled with advanced breeding techniques and the superior quality of our Canadian breeding hogs will allow us to capture more market share and drive our growth."

Business Outlook

"We continue to see significant growth for our industry, underpinned by strong demand for quality pork among Chinese consumers," said Mr. Zhenyu (Jack) Shang, Founder, Chairman and CEO of Sen Yu International Holdings, Inc. "China's economy continues to grow rapidly, buoyed by a rising middle class and the continued preference for pork as a main and most popular source of protein among the Chinese population. To meet rising consumer demand, we continue to refine our breeding techniques and expand production based on increases in orders for commercial hogs from our customers. Based on China's economic expansion and government policies encouraging domestic pig production, we believe pork production and consumption will continue to rise, helping to fuel strong revenues and profits in our business going forward."

Investor Presentations

Sat, 30 Apr 2011 04:00:00 GMT

Sen Yu International Holdings, Inc. is hereby furnishing a corporate presentation that the Company intends to present at the 2011 Financial Services Exchange conference in San Francisco, California on April 28 to April 30, 2011 and a fact sheet to be distributed at the conference and thereafter.

Share Structure

Wed, 20 Apr 2011 04:00:00 GMT

Pursuant to the terms of the 10% Secured Convertible Notes (the “Notes”) Sen Yu International Holdings, Inc.(the “Company”) issued in February 2010, which were described in more detail in the Current Report on Form 8-K filed on February 22, 2010, all of the Notes were automatically converted, for no additional consideration, into an aggregate of 1,096,498 shares of the Company’s common stock (“Common Stock”), 913,192 shares of Series B Preferred Stock, Series A Warrants to purchase an aggregate of 799,044 shares of Common Stock, Series B Warrants to purchase an aggregate of 799,044 shares of Common Stock and Series F Warrants to purchase an aggregate of 877,199 shares of Common Stock, immediately following the closing of the private placement of $3,044,140 of Common Stock, which together with the private placement of $2.42 million of the Company’s Series B Preferred Stock in June 2010, constituted a “Qualified Financing” as defined in Notes. The issuance of the Common Stock, Series B Preferred Stock, Series A Warrants, Series B Warrants and Series F Warrants upon conversion of the Notes was made in reliance on the exemption from registration provided by Section 3(a)(9) of the Securities Act of 1933, as amended.

CFO Trail

Sun, 03 Apr 2011 04:00:00 GMT

On March 3, 2010, Ligang Shang delivered a resignation letter to Sen Yu International Holdings, Inc. (the “Company”) pursuant to which he resigned as Chief Operating Officer of the Company effective immediately. Mr. Shang will continue serving as a member of the Company’s board of directors.

On the same day, Mr. Shang was appointed as the Vice Chairman of Heilongjiang Sen Yu Animal Husbandry Co., Ltd., a wholly owned subsidiary of the Company in China. Mr. Shang’s current compensatory arrangement with the Company will not change as a result of the changes of his position with the Company.

Deal Flow

Tue, 22 Feb 2011 05:00:00 GMT

On February 17, 2011, Sen Yu International Holdings, Inc. entered into a subscription agreement with a non-U.S. investor called D.D Investment Co., Limited, a Marshall Islands corporation, pursuant to which the Company sold an aggregate of 1,383,700 shares of the Company’s common stock at $2.20 per share for total gross proceeds of $3,044,140 (the “February 2011 Private Placement”).

The Investor also received a common stock purchase warrant exercisable for three years to purchase 1,106,960 shares of Common Stock at $2.64 per share. The Warrant may only be exercised in cash and the exercise price of the Warrant is subject to adjustment for stock splits, stock dividends, recapitalizations and the like. The Investor is entitled to piggy-back registration rights with respect to the Shares and shares underlying the Warrant. No placement agent was utilized in connection with the February 2011 Private Placement. The issuance of the Shares and Warrant was made in reliance on the exemption from registration provided by Regulation S of the Securities Act of 1933, as amended, as an offshore transaction involving non-U.S. persons.

Comments & Business Outlook

Mon, 14 Feb 2011 05:00:00 GMT

Second Quarter Results:

Net revenues increased 26% to $29.1 million for the quarter ended December 31, 2010 from $22.99 million for the same period ended December 31, 2009
Gross profit increased 32% to $7.03 million for the quarter ended December 31, 2010 from $5.32 million for the quarter ended December 31, 2009
Net income, net of change in fair value of warrants, increased 34% to $5.64 million for the quarter ended December 31, 2010 from $4.21 million for the quarter ended December 31, 2009
Diluted earnings per common share increased 22% to $0.44 per share for the quarter ended December 31, 2010 from $0.36 per share for the same period ended December 31, 2009
Adjusted EPS was $0.22 vs $0.36.
Net revenues increased $6.08 million or 26% to $29.08 million for the quarter ended December 31, 2010 from $22.99 million for the same period ended December 31, 2009

The following table sets forth information regarding the average price per capita of our principal products during the three months ended December 31, 2010 and 2009:

	Average Unit Sales Price Per Capita
	Three months ended December 31,				Basic Change
	2010		2009		Per Capita
Commercial Hogs	$	187.90	$	191.18	$	(3.28	)
Others Hogs		255.02		231.29		23.73
Overall Average Products	$	188.36	$	191.18	$	(2.82	)

The decrease in average unit sales price (per capita) of commercial hogs, as reflected in the table, was primarily attributable to the fact that the average weight of commercial hogs we sold during the three months ended December 31, 2010 was less than the average weight in the same period in 2009. In addition, the average market price of hogs per kilogram declined slightly in the three months ended December 31, 2010 as compared to the same period in 2009. The average unit sales price of others hogs increased for the three months ended December 31, 2010 as compared to the same period in 2009. The unit sales prices of piglets and substandard hogs were generally lower than breeding swine and commercial hogs and the unit sales prices of high quality breeding swine were higher than ordinary breeding swine. We sold more high quality breeding and ordinary breeding swine during the three months ended December 31, 2010 while we only sold ordinary breeding swine during the three months ended December 31, 2009. As a result, the average unit sales price of other hogs increased significantly for the quarter ended December 31, 2010.

As of December 31, 2010, 2010 there was an advance to Wang Da of $32.44 million. In order to raise quality commercial hogs, and control the quality of feeding materials and procedures, the Company entered into a cooperation agreement with Wang Da, its major feedstuff supplier, to provide Wang Da's farmers with fodder to raise their commercial hogs. The supplier offsets the advances from the Company once it delivers commercial hogs to the Company

Liquidity Requirements

Wed, 17 Nov 2010 05:00:00 GMT

We believe that we have sufficient funds to operate our existing business for the next twelve months. In addition to funds available from operations and loans from shareholders, we may need external sources of capital for expansion of our facilities and to increase the roster of our franchisee farmers, in order to reach our goal of producing one million commercial hogs in 2013.

Comments & Business Outlook

Wed, 17 Nov 2010 05:00:00 GMT

	For The Three Months Ended September 30,
		2010			2009
		Unaudited			Unaudited

Revenues		$	23,562,468		$	21,895,508
Cost of Goods Sold			18,221,146			17,167,862
Gross Profit			5,341,322			4,727,646

Operating Expenses
	Selling expenses		832,828			671,363
	General and administrative expenses		485,824			68,172
	Losses on disposal of fixed assets		48,479			107,753
	Bad debt for advanced to suppliers		202,962			178,830
Total Operating Expenses			1,570,093			1,026,118

Income From Operations			3,771,229			3,701,528

Other Income (Expense)
	Interest expense (income), net		(71,034	)		554
	Other expense net		(442	)		(6,242	)
	Loss on disposal of inventories		-			(239,179	)
	Change in fair value of warrants		(13,210	)		-
Total Other Expense			(84,686	)		(244,867	)

Income from Continuing Operations Before Income Taxes			3,686,543			3,456,661
Income Tax Provision						-

Net Income Before Noncontrolling Interest			3,686,543			3,456,661

	Less: Net income (loss) attributable to the noncontrolling interest		2,056			(103,814	)

Net Income Attributable to Sen Yu International Holdings, Inc.		$	3,684,487		$	3,560,475

Earnings Per Share:
	- Basic	$	0.18		$	49.04
	- Diluted	$	0.10		$	0.18

Weighted Common Shares Outstanding *
	- Basic		20,892,982			72,598
	- Diluted		36,335,180			20,031,181

Investor Presentations

Thu, 21 Oct 2010 04:00:00 GMT

Sen Yu International Holdings, Inc. is hereby furnishing a corporate presentation that the Company intends to provide to financial analysts, investors and other third parties from time to time as part of its investor relations activities.

Comments & Business Outlook

Wed, 29 Sep 2010 04:00:00 GMT

Year ended June 30, 2010 Highlights

Net revenue increased 39.61% to $70.35 million for the fiscal year ended June 30, 2010 from $50.39 million for the same period ended June 30, 2009.
Gross profit increased 62.75% to $14.29 million for the fiscal year ended June 30, 2010 from $8.78 million for the same period ended June 30, 2009
Net income increased 38.74% to $6.26 million for the fiscal year ended June 30, 2010 from $4.51 million for the same period ended June 30, 2009.
Diluted earnings per common share increased 100% to $0.46 per share for the fiscal year ended June 30, 2010 from $0.23 per share for the same period ended June 30, 2009.

Mr. Zhenyu Shang, the founder and chief executive officer of Sen Yu International, said, "Our strong increases in revenues and net income for the fiscal year ended June 30, 2010 reflect the high pork consumption in the Chinese market due to China's economic expansion. The consistency of our operating performance results from our established business model and effective execution. Our strategy, business model and actions have proven to be very effective, thereby delivering results. We continue to bring in talents to strengthen our financial structure and corporate governance."

Mr. Shang continued, "I believe our results for the fiscal year ended June 30, 2010 represent a very good performance in a very high growth year. With our advanced technology, modest debt leverage, and additional financing flexibility, we believe we should be very successful in expanding our current market and working capital to support sales growth in our commercial hogs market. We utilize Golden Lotus as our selling agent to ensure quality through a selection process. Golden Lotus is our exclusive sales agent in Heilongjiang Province. If Golden Lotus is not able to sell the minimum quarterly amount, it is required to pay a fee equal to 20% of the unaccomplished sales, and we have the right to sell our breeding swine through other agents. Among Golden Lotus' responsibilities is the recruitment of farmers that meet our standards. Golden Lotus is also responsible for processing the necessary data regarding the farmers, their requirements of breeding swine, their productivity, and an estimate of their fodder requirements. The data formulated by Golden Lotus is then used to determine the farmers' fodder requirements and our financial obligations to Wang Da. Wang Da is our fodder supply agent who maintains the Fodder Supply and Commercial Hog Buyback Agreements with the farmers."

Mr. Shang concluded, "China's economic outlook continues to be encouraging, and China's projected domestic pork consumption will approach 68 million metric tons in 2015. Government support and trade protection policies also encourage domestic pig production with tax exemptions, vaccines technology, feed costs cap, price control and providing use of lands. China consumes about 50% of the world's pork products. As a result, we believe that the high demand for hogs should continue for several years."

CFO Trail

Thu, 16 Sep 2010 04:00:00 GMT

On September 13, 2010, Sen Yu International Holdings, Inc. appointed Mr. Paul Yu Chin Li, as its Chief Financial Officer effective as of the date immediately following the date the Company’s annual report on Form 10-K for the fiscal year ended June 30, 2010 is filed with the Securities and Exchange Commission. Ms. Tongyu Zhang, the current Chief Financial Officer, will resign upon the filing of the Annual Report.

Deal Flow

Sat, 24 Jul 2010 04:00:00 GMT

On May 1, 2010, China Swine Genetics, Inc. entered into an engagement letter with a registered broker-dealer with respect to prospective financing transactions. To date, no such financing has occurred..

Investor Alert

Wed, 14 Jul 2010 04:00:00 GMT

On July 2, 2010, China Swine Genetics, Inc. (the “Company”) received a written notice of acceleration dated July 2, 2010 (the “Notice”), from Primary Capital LLC (the “Agent”), who acts as the agent for the holders of the 10% Secured Convertible Notes issued by the Company on February 22, 2010 (the “Notes”), alleging that an event of default has occurred under the Notes due to the Company’s failure to pay $76,516.46 of accrued interest under the Notes due July 1, 2010, and declaring its intention to accelerate the payment of one hundred and fifty percent (150%) of the full unpaid principal amount of the Notes, together with accrued and unpaid interest thereon. The total unpaid principal amount of the Notes is $2.165 million as the date of this report. The Notice also stated the intention of the Agent to pursue all rights and remedies available to the Note holders during the continuance of an event of default and explore other remedies available under applicable law.On July 2, 2010, China Swine Genetics, Inc. (the “Company”) received a written notice of acceleration dated July 2, 2010 (the “Notice”), from Primary Capital LLC (the “Agent”), who acts as the agent for the holders of the 10% Secured Convertible Notes issued by the Company on February 22, 2010 (the “Notes”), alleging that an event of default has occurred under the Notes due to the Company’s failure to pay $76,516.46 of accrued interest under the Notes due July 1, 2010, and declaring its intention to accelerate the payment of one hundred and fifty percent (150%) of the full unpaid principal amount of the Notes, together with accrued and unpaid interest thereon. The total unpaid principal amount of the Notes is $2.165 million as the date of this report. The Notice also stated the intention of the Agent to pursue all rights and remedies available to the Note holders during the continuance of an event of default and explore other remedies available under applicable law.

GeoSpecial Notes

Mon, 28 Jun 2010 04:00:00 GMT

Added to the GeoSpecial list on February 12, 2010 @ $4.10

Catalyst: Reported a strong 2010 first quarter.
Peak performance: Reached a high of $9.00 on February 18, 2010
Current Price: $6.35 (Has a wide bid/ask spread).

Current road block: Company may have to raise capital as cash balance is only $3.3 million and 2010 cash flow from operations is tracking at around $4.0 million; We need to delve further into the capital structure and investigate the 81.9% increase in the diluted share count from the 2010 first quarter to the 2010 second quarter; Gross margins will have little room for expansion.

Removed from the GeoSpecial list until we gain a better grip on capital structure and liquidity requirements. We were impressed that the majority shareholder, Ligang Shang, agreed to cancel his loan which could signify confidence in the business plan

"After our founders made the initial contribution of our registered capital, the growth of our business has been funded, primarily, by the revenues resulting from our business operations, by loans from the Chinese Government’s Financial Bureau and by loans from our shareholders. We did, however, owe $11,167,236 to our majority shareholder, Ligang Shang, representing funds he loaned to Advanced Swine during our development period. At the quarter ended September 30, 2009 , however, Mr. Shang agreed to waive his right to collect that sum, and contributed it to the capital of the Company. Accordingly, our working capital increased by the amount of the cancelled loan, as did our paid-in capital."

Need for capital is on the table:

"We believe that we have sufficient funds to operate our existing business for the next twelve months. However, in addition to funds available from operating and loans from shareholders, we may need external sources of capital for our expansion of our facilities and to increase the roster of our franchisee farmers, in order to reach our goal of producing one million commercial hogs in 2011."

Financials

Thu, 20 May 2010 04:00:00 GMT

Revenues

Total revenues were $14,921,687 for the three months ended March 31, 2010, an increase of $7,180,772 or 93%, compared to $7,740,915 for the three months ended March 31, 2009. The increase in revenues mainly resulted from increased orders from our major customers. We increased sales volume of commercial hogs from 38,169 for the three months ended March 31, 2009 to 85,294 during the three months ended March 31, 2010.

Reverse Merger Activity

Tue, 25 Aug 2009 04:00:00 GMT

On August 13, 2009, Apogee Robotics, Inc. (“Apogee Robotics”) acquired all of the outstanding capital stock of Advanced Swine Genetics, Inc., Advanced Swine owns 100% of the registered capital of Heilongjiang SenYu Animal Husbandry Co., Ltd. (“SenYu”), a company organized under the laws of The People’s Republic of China (“PRC”). SenYu is engaged in the business of breeding and raising commercial hogs and piglets and distributing them to the slaughter facilities and pork distributors in the PRC. Since the inception of its business in 2004, SenYu has developed a group of farmer franchisees who serve as the primary producers under the SenYu model for raising commercial hogs. Utilizing the most advanced technology and artificial insemination equipment and applying the same strict control standards for raising commercial hogs used in North America, SenYu has established its brand name as a high-quality swine product provider in the industry in China.

Upon completion of the Share Exchange, there were 994,067 shares of the Company’s common stock issued and outstanding. There were also outstanding shares of Series A Convertible Preferred Stock that are convertible into 464,605,933 shares of common stock.

Our revenues have grown from $3,984,967 in the year ended June 30, 2006 to $30,435,126 in the year ended June 30, 2008. During the nine months ended March 31, 2009, our revenue has already exceeded revenue achieved in all of fiscal 2008, growing to $34,139,865. The increase in revenues reflects our rapid development in both production and marketing efforts.

Liquidity Requirements

Tue, 25 Aug 2009 04:00:00 GMT

Our business plan contemplates that we will invest approximately $15 million dollars on expansion to raise the goal of production of one million commercial hogs by 2011. Implementation of this plan will require significant funds. Our plan is to sell a portion of our equity in order to obtain the necessary funds, which will reduce the equity share of our existing shareholders.

Reverse Merger Activity

Wed, 09 Jul 2008 04:00:00 GMT

A recently filed 8K on April 7, 2008 implies that APRB may be in the midst of a reverse merger/share exchange event:

"On March 31, 2008 Zhenyu Shang purchased 630,000 shares of the Registrant’s common stock, representing 63.4% of the outstanding shares. The shares were purchased from Corporate Services International Inc., which is owned by Michael Anthony, who was the sole officer and sole director of Apogee Robotics.

Zhenyu Shang is currently employed as Chairman and Chief Executive Officer of the Heilongjiang Senyu Animal Husbandry Co., Ltd., which is engaged in the business of breeding and raising hogs and boars in the People’s Republic of China. Mr. Shang founded that company in 2004."

The GeoTeam will provide more information once it becomes available.