Q4 2019 Earnings Call
Greetings and welcome to Pingtan Marine Enterprise 2019, fourth quarter and year end financial results Conference call.
At this time, all participants are in listen only mode.
A question answer session will follow the formal presentation.
If anyone should car operate assistance during the conference. Please press star zero from your telephone keypad.
Please note this conference is being recorded.
I will turn the conference over to Katherine Yao Michel you may begin.
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Thanks, Robert and good morning, everyone. Thank you.
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Copies of the press release announcing that could cause lumpiness quarter I never international jobs are available on <unk> and Marines website.
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Before I get started.
I'd like to remind everyone that this conference call and an accompanying information it's got to carry.
Okay children forward looking statements within the meaning of the safe Harbor provision of the private Securities Litigation Reform Act of 19 million flags.
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Greetings.
Investors are cautioned about such forward looking statements involve risks and uncertainties that may affect people marine.
Aspects and the results of operation.
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I'd now like to take a moment outlined the format for todays call more to take care of all conference call participants. It's called will be conducted spoke English and Chinese first of all companies chairman and you'll need so sure young jewel we prepared opening statement.
Handling, which I will then lead in English.
Then turn the conference call to Mr. Michael.
I'm Marine CFO, who will continue with the presentation.
Finished well open the floor phone questions.
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Question answer session. Please allow us a moment tries to make up the questions and then we'll long small everyone on the call in both English and Chinese.
What about on their game, changing schulman fines and <unk> Jewel Sean.
With that I'll turn the call them to people Marines, chairman and CEO Mr. ensure long lateral he's welcome mr. jewel she's not changing how high all she had a chance incident you got your insurance interesting that creates huge entrant talk I jumped on quite good bye.
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[noise], ladies and gentlemen, good morning, Thanks for joining all the 2009 PM fourth quarter and you're in earnings conference call.
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[noise] here three you know operational performance in 2019 and are looking forward to building on that performance in 2000 employment. Following the completion of the modification I know the beauty of 27 large scale fishing vessels in 2018.
2019, we completed the modification and rebuilding of another 32 large scale fishery battles.
According to refrigerated the trust that doctors and artificial budgets.
Part of all efforts.
Band alteration.
And the catching precocity.
We ended 2019 estimated application to the Chinese government authorities to all the crane permits modified and that would be conducts its the we did see attrition, but those have increased I'll catch marketing and sales volume and all attraction mix shows a diversity.
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[noise] isn't something that has been committed to developing our ocean fishing business and they publish the long term strategy. That's good morning content into it.
Global food company, integrating tracking well servicing coaching logistics and trading.
2019 immediate all sorts of priority.
Right opportunity for recovering and inherent in catching capacity at the meeting customer demand.
Hello, all strategy and to continue our efforts in expanding all catching capacity, an extraordinary but the bottom out in scope and death.
Activation of the potential targets domestically and abroad.
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[noise] in capacity expansion mobile computing actively seeking new fishing grounds and worldwide, including North America, South America, and the Hisun, which will further diversify our product mix and the fish species or the harvest.
We also made efforts exploring and advancing the integration development constraints in our business its strategy and the branch out to fish processing and treating business.
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[noise] the first quarter 2020, it's a difficult time for many companies, including piece on that conducted the businesses in China seems to be Coleman virus outbreak.
Rick.
Company has taken active for precautionary measures and the gradually magazine one mid February to reduce the impact of a pandemic on all production and operations.
Our they'd be pandemic has not yet to disappear completed we remain optimistic about the product string and operation activities.
Coming quarters anytime hasn't been devoted to be made leading supplier naturals sushi and the high quality protein in the Chinese market.
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I'm Marino keeping vectors that price all aspects of the government to progress and it will welcome constructive suggestions and they actively working them patients.
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[noise] now I would like to introduce our CFO Mr., Michael Young well discuss the operation and international results until the fourth quarter and you're off to patent function on behalf of all company I look forward to meeting in person and I've always welcome tall headquarters in food Joe.
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You're welcome Mr., Michael Young Chief Financial Officer by merging enterprise certain employee George.
Thank you Jay good morning, and welcome everyone regarding the fags affecting Pete can resolve of operation.
Please refer to our 2019 fourth quarter, and you and earning press release.
And the 10-K, we filed.
Today, I would discuss Pingtan Marine's 2019 fourth quarter, and you an operation and financial results.
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For the fourth quarter of 2019 of sales volume were 17.9 million kilograms compared to 10.4 million kilograms in the fourth quarter 2018.
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For the year at December 31st 2019 sales volume increased by 93.2 person to 50.8 million kilo game from 26.3 million kilograms in the E M.
Defender basis 2018.
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Pingtan reported its revenue for the nine month ended December Baby food 2019, as 84.6, New news compare.
25.1 million what are the same period 2018.
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For the year ended December 31st 2019 company revenue were 89.6 million increased by 39.5 to stem from 60.
4.3 million for the year ended December 30, since 2018 <unk>.
The increase was mainly due to be.
Total of 81 vessel that the company put into water operation in 2019, which lead to increased sales volume and revenue.
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The fourth quarter ended December 31st 2019, gross profit was 8.3 million compared to gross profit of 9.1 million in the prior year period. The gross margin for fourth quarter ended December 30 for 2019.
He was 24 cents compared to 36.2% for the same period in 2018.
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Well. The you ended December 31st 2019, gross profit was 25.2 million compared to gross profit of 31 million in 2018.
The gross margin for the year 2019 was 28.1% compared to gross margin of 48.3% in full year 2019.
Decrease was primarily.
Attribute to the lower average selling price upbeat.
Oh about catches Oh fishing location were mostly in international what it in 2019 and the catch makes varied from 2018.
Catch me see with the higher sales volume was still at a low price, which led to a drop about average unit sales price by 27.9 for the year ended 2019.
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For the fourth quarter ended December 30 for 2019, selling expenses were about 0.82 muni compared to <unk> 0.44 Muni in that period ended.
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Whether you ended December 30 for 2019 selling expenses.
2.72, new mean, an increase of.
7.4% to 1.62 million, but the same period in prior years increase was primarily due to the increase in shrink as a result of more that's a baby insured in 2019.
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And at December 31st 2019, Oh General and administrative expenses were 1.1 million compared 2.7 million in the same period right.
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But if they could go yeah and mid December 30, right 2019, total general and administrative expenses were 15.8 million compared to 20, mainly.
In the same period 2018 <unk> decrease.
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Let's say the decrease was primarily due to 18.2% decrease in impairment loss on dismantle and the registration vessel and the 85.7% decrease in depreciation on no operating vessel.
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Well the three month ended December 31st 2019.
Net loss was 1.1 million compared to net loss of 3.2 million in the same period of 2018 decreasing net sales was mainly due to a decrease of 4.3 million noncash impairment loss from vessel in the fourth quarter two.
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For the year ended December 31st 2019, net income was <unk> point 4 million compared to 14.8 million in the prior year key.
Decrease of 50.9%.
Company, we call an impairment loss of 8 million and B P to P depreciation of 3.7 million and no operating vessels.
In the two non cash items totaled 11.7 billion or operating expense.
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Pingtan reported a net loss attribute to owners of the company.
1 million <unk> fourth quarter, two thirds of making or one thing, but I need a ship compared to net loss attributable to own off the company.
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The company reported net income attribute to own off the company of 5.7 million, whether you ended December 31st 2009 inning or seven.
Seven cents per basic and diluted share compared to net income a tribute to the owner of the company of 13.4 million or 17 cents.
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On the balance sheet as of December 33, 2019, Inktank cash and cash equivalent was 10.1 million total active with 100 gig form you mean.
21 million.
Total long term debt was 50.
7.1 name and shareholder equity 155.1 million compared to 1.9 million.
247 million.
88.5 million and.
I'm getting 51 million respective at December 30 for 2018.
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We continue focusing on territory of the expansion and increased fishing methods to further increase.
Production capacity in which product me, we anticipate inching deep.
Pete processing market and <unk>.
Leads directly to end consumer both online and offline.
Meanwhile, we will further explore E commerce HIFU retail business.
Hey, Oh PPI industry.
Chain and develop new.
Distribution channels to penetrate China in publishing.
Finally, I hope that who all efforts we can overcome the corona violate it's always possible. Thank you.
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With that operator, let's start with you on a go the fashion, although Q I know you fishing. Please all allow us a moment's translate to the questions I'm very good will respond to everyone on the call in both English and Chinese.
Thank you.
Well now be conducting a question answer session. If you like to ask a question. Please press star one on your telephone keypad and a confirmation telling indicate your line is and the question Q.
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Participants using speaker equipment, and maybe necessary to pick up your handset before pressing the star keys.
One moment, please what we poll for questions.
Once again, if you like to ask a question today. Please press star one from your telephone keypad.
At the time there are no questions my home and if you're going to live opportunity funnel affinity pressing star one to ask a question.
Thank you there are no question, that's a similar hand, the floor back to management.
Yes.
Again.
Thank you again to all of you join it and joining as we look forward to speaking with you again in May We May report I'll first quarter 2020 financial result, as always we welcome any visitors to our office improved though China. Thank you.
Thank you this concludes todays I guarantee.
My policies. Please go ahead, thank you and I got an.
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Thank you.
Who today's conference you may disconnect your lines at this time, thank you for your participation.
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