Q2 2020 Pingtan Marine Enterprise Ltd Earnings Call

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Question answer session will follow the formal presentation. As a reminder, this conference is being recorded it is all my pleasure to trigger Colbert your host Jay you interpreter appear rock communication Jay. Please go ahead.

Okay. Thank you.

That's all BARDA and good morning, everyone. Thanks for joining outs.

Yes.

Sure.

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Ladies and nothing that's a problem 22nd quarter and six month, she actually watch.

Well I'm sure Marines website.

Street somebody about peak in marine Dot com.

Why you're kidding, I actually I shall go shambles, Armenia, the Archie because they oh by the show on top.

Hi out she won't show that's about one.

And I know that keep team yeah.

So we are also welcome [laughter].

No so drinking marine fuel.

Dot com.

Well, we'll be happy they send you a copy.

In addition, that's a broadcaster will be made available.

Okay.

Hi, Marines watched <unk>.

Well, Matt social fighting with fossil yeah, Yeah sure you're getting married that's pure dot com.

Sure well walk dot com.

Well not unlike in the top anytime soon.

Yeah, Hey, it's all at.

Yeah, John Gonsior, well, what's your trip yeah.

Before we get started.

I would like to remind everyone that this conference call and any company information discussed herein and pass it certain forward looking statements.

In the meaning Safe Harbor provision private Securities Litigation Reform Act of lunch in money.

So your question, Jeff what sounds teaching bullet.

So Dan why did you tell you don't call Linda Chambord said, she I am hoping that championship Chase you just have social for each other.

And on translation.

I'm trying to shop on the baby.

Investors are cautioned about.

Forward looking statements involve risks and uncertainties that may.

I'm oriented business prospects and the results of operation.

Such risks are 40 people came from marine filings.

Charities and Exchange Commission.

How did that change.

Thank you actually Wollam Shaggy dog Canadian jump.

Yep.

Hi, Jane yet.

The checking Vincent.

Hi, Thanks, Jonathan Trott enjoyed they are actually Wm can't do it yourself, you or something else.

I'd now like to take a moment.

All lines formats today's call.

So more to take care of the all conference call participants this call will be conducted in both English and Chinese.

First of all the company, the chairman and CEO Mr. Standalone tool will read a prepared opening thing that's the mandatory.

Sure I will then we've been in English.

Turning the conference call to meet couldn't be neutral.

Hi, Marine Yeah, Oh, well continue.

Okay sure.

It's finished.

Open the floor for questions.

Well she has always had been tender offer you built.

I'm talking about sold which certainly life changing and Sean Quinn.

So it's yet to high actually I wish I won't.

Yes, so situation, what well see it won't change from where you enjoy Josh it jumped about that as.

Well I don't know when fight.

No well what about walled off I interpret conjunction got high ops Younge, I guess about Shacey I wont events younger.

Interesting about.

How about general electric Craig I should jump quite a challenge.

The question answer session. Please allow us a moment tried to make the questions, but maybe more responsive to everyone on the call impulse English and Chinese.

So I wouldn't want to get you shouldn't change that's you know what Joel.

Sure.

With that I will turn the call it over to print the Marines, chairman and CEO Mr. Chen Schor, leaving welcome Mr. <unk>.

And that's what's your geoscience younge I'm going to I'm sure. Yeah. So she interesting what youre, saying I'm, sorry, Oh, Hi, how are you waiting for them.

Thank you Brian.

There's no children.

Good job done here.

Yes, you can go through.

Yeah, no no okay.

I don't know still today.

Ladies and gentlemen.

Morning.

Thanks for joining our 2022nd quarter at six months a conference call.

[noise] pretty much she is thinking about [laughter], yeah, you know what do you feel though.

Oh, yes.

Yes.

So they are actually going extremely well so good luck.

As you know.

She.

Okay, well, you're asking me so sometimes it's gone.

Oh no they want.

[noise] Oh no. He called me 19 pandemic appears to be under control in China. It situation, it's still severe in many countries and regions of the world.

That adversely affected the global market and economy.

The second quarter. After 2028 second a wage regional spreading up the Cardinal Myers occurred in some sitting from China, including Beijing, and some case, it's a war related to chase a markets.

And impacts on the price it up and marine patches.

[noise] [laughter] pretty well.

Oh yeah.

Oh Geez Gerald.

[laughter].

[laughter] goals.

Yes.

[laughter] Wednesday.

Any true methodology.

[laughter].

Hi, Great [laughter].

So what's your cell phone.

[noise] in that second quarter of 2020, although we saw it creates a 1.7 million revenue during the quarter compared to say that same period instead of the Nike.

Our sales volume picks up to 21.8 more to Cajun increased 41% compared it to the same period in 2019.

Hi.

Hi, it's a record at the single point it shows a lot in so right now which in the five years.

[laughter] you know what's yours.

Total organic.

No.

Hey, you know [laughter].

Okay.

[laughter].

So what youre pretty high temperature Michelle.

Sure Yeah Joe.

[noise] [noise] would the original spreading the calling on virus attained.

Chinese market is gradually recover.

Catering instrument and entertainment industry had the resumed normal operations.

Although they are not able to estimate that future impact of the Kobe Monkeying 10 damage at this time.

We believe that the Chinese consumers demand for seafood well they turn Anglo during the second half 2020.

Well pretty Oh, yeah.

Oh, you know official.

Yeah.

[noise] well [laughter] Tony.

Okay all right.

Wow.

To me that you like your job.

No.

[laughter] no Oh well.

[laughter].

Oh gosh.

In the absence of big potential market the variations unfair to the company and that your development and expansion of catch it species.

They are building a large scale antarctic liquids fishing and the processing, that's well above gross tonnage.

8600, and overall launch of a 107 meters.

Upon completion and operation of that no updates and that's it.

Our fishing areas wont be expanded Antarctic waters, and our fishing capacity will be further enhanced.

Oh boy.

[laughter].

No no certainly occasionally I [laughter], we're not at all.

Oh I'm.

I'm sorry, Tom.

Oh boy.

[laughter].

Well my here you know why [laughter].

[laughter] coal.

[noise] present with habit fishing fleet consists of a 143 about says well, which 68 or 1000 tonnage catching back those.

Completed the modification and the rebuilding projects I wish you good unless we are large scale refrigerator its transported that's it.

Total tonnage of over 120000.

That's fishing grounds well oceans.

10 year fishing vessels completely committed to doing projects in the second quarter 2020, maybe put into operations. So.

Good night.

John I know, what do you honestly John.

Oh so.

No.

[laughter] show no no no.

Hello.

Yeah.

[noise] dollars came from marine well keep investors apprised of all aspects of the development the progress and a welcome constructive suggestions and it looks like it recommendations.

Sure.

Yes, no I don't know.

[noise] [noise] Roni me in here.

Oh.

You know.

Okay.

Oh Hello [laughter].

[laughter].

Yes Hello.

[laughter].

[laughter].

Oh yeah.

[noise] now I would like to introduce our CFO Mr. I do want to go.

Who will discuss the operation on the financial results for the second quarter and the first six months after 2000 employment.

On behalf of our company I look forward the meeting in person.

As always welcome to our headquarters and we joke and take a tour. Thank you.

She has that you're thinking about high out. She has also shown chappelle, but you only use and welcome Tim Fiat.

Please welcome mid Thirtys interim Chief financial Officer of the PBM Marine Enterprise, Sir the floor is yours.

Thank you Jay good morning, and won't come way one.

Regarding the fact that [laughter] in Pink Angry example, operation. Please refer to that point <unk> second quarter, and six month and price, we believe that and Q we thought.

Today, I will discuss entangling plenti points <unk> second quarter.

Operation and financial results.

Sure.

No fighting but yeah.

Maybe I'll go with Jane yet you buy units in Chicago, and that's probably the Aarding ardent MPR just call it channel, but yes, I will give the ceiling.

I'll be happy, but you know Bob.

Jim yet well jump I definitely Bob.

She had a chance <unk> army linear DRTV Cheech I never get.

Oh Gee, how we did.

[noise] three month ended June Thirtyth <unk>.

Exactly what its revenue all.

33.5 million, a decrease of 2 million or 7.9% Penske 5.5 million.

Well the same to you in the nice thing.

It was volume decreased by 41 point.

10 to 21.8 million kilograms, and they'll be month ended June thirtyth Twentytwenty from <unk> point 1 million kilograms in that same period 2019.

Yes volume increased by a lot and it's that revenue decreased slightly by the second quarter.

Okay.

Decreasing their view, what I've never really attributed it to.

Nick and.

Decrease in average unit there was quite.

By the increasing sales volumes due to more.

Operation.

Average sales.

Average unit sales price decreased eight.

0.5% and a three month ended June.

<unk>.

Compared to three month ended June Thirtyth Wednesday night team.

Are they are lenient theology, there <unk> unique shoulder right, yeah, Joe somebody salami.

Are you doing apology shoulder late yeah, I'm, telling you by the show what the Columbia.

Thank you down the path and that should enjoy.

That's all yet number one there yet.

Our namely ideology been shutting down it down Chet possible I'm going to get our then you can you put yourself or what else can you buy special on India.

No I haven't decision.

So much and all that you all yes, you show champion.

If you do Thompson can come down actually got them, Jim Bob <unk> total control you're trying to.

Yeah, Hey, Joe about little things.

We are talking about chunky infusion time, we showed that the ardent aegion punchy giambi shutdown at that merger suggested that.

Well the six month ended June Thirtyth Funky point in time reported revenue of 40.8 million compared to 43.9, mainly in the first Apple 29.

A decrease of 3.1 million or 7.1 Penn.

Yes, well yet in the six month ended June Thirtyth.

<unk> increased by 46.

To 85.3 million kilogram.

24.2 million kilogram.

The next month ended June Thirtyth <unk>, you might see.

The average unit sales price decreased by 33.8 then.

Next month ended June Thirtyth that funny I compare.

And if.

So do you want to be making it decreased due to the same lead them to right above.

Our new yard in yet I know, but yet weekly nationally so channel impossible I made that are you doing and told you showed away. So just done by Chile, Colombia, only downbeat patent gets you there.

That's all yet done by initial I mean.

Regarding that she I know they've got a show dally punch out whereby sensuous cogent hardening eating at home. She shops will now it's got a chance about ARX <unk>.

So I think it's supposed to do.

I can't you didn't sound, we showed that we already knew doing it puts you shall be shutdown passenger especially new there.

Sure. So I've got a you know shovlin social young sample.

Are the three month ended June thirtyth, but it might be in tank gross margin was 9.2% compared to 36.75 year period.

Decreasing gross margin for the three month ended.

So do you have 20, it's funny as compared to the same period.

2019.

The decrease in average unit price by 84.5% while at the core.

A unit has slightly decreased.

Hey, Keith Keith.

You see about feels to me what Indian Ocean rig with market by what on the low site.

And the market quite busy people with expected it to the sits today.

Hmm.

Together led to a decrease in average unit price.

Okay.

[noise] Arnie Arlon, yet you are cheaper maliti like 500 sort it out.

During each of their own she'd maldini right sizing <unk>, so I should know there.

Our lean already ideology body shops younger Charlie I am sure fusion family sure Yeah.

So I'll jump back when it gets down to somebody else, that's not true sandwich, but no change out yet.

That's helpful. I bet, you option, though should easily I know you.

Got it can be okay. What are you seeing one each in the project lung boy I'm getting the Chicago show about young children.

Alger shovels are set up she didn't I wish I got them.

Well the six month ended June Thirtyth plenty plenty gross margin increased 19.4, but then some food and one more thing same period of 2000 HM.

Decreasing gross margin for six months and be very.

<unk> is due to the same reason.

Are they starting at San Jose at them already like life, and just to do that.

Pardon me doing it hometeam out anyway, I can just pressure that's it.

I didn't mention there really is maldini shutdown, but yeah, we see that sample.

For the three month ended June Thirtyth, it's funny, selling expenses 1 million compared to the happening.

In the same period.

In increased primarily due to increasing interest rates.

Rich be other miscellaneous selling except.

[noise] hardening. Our then yes, yeah people their social family you bought one there yet Arden Ethernet and she shops or you don't wait insulin there yet social thing on things now that you I am sure punctual fit all show, but that should hot topic things out.

The six month ended June.

So do you have plenty plenty.

<unk> expenses that 2 million compared to one point family.

Thank you you 2019.

And increasing the same reasons described above.

Our <unk> arlon, yet so I never get a social family Yeah, I'm back when they at Arlington, Virginia, Punchy shuffle feeling like.

So on that yet.

<unk> aarding lunch and he'll be a social figuring things out that you are yet yeah, yeah. It you've been sample.

But the three months ended June Thirtyth, 2020, general and administrative expenses were 1.6 million compared to <unk> 0.1 can you put it into it.

Alright, arguing that the our general question you don't want it feels like they were Schlumberger Arlington, Virginia tons, you feel like them, but you still on that yet.

Passenger cars or would it.

Your job either through I am sure R&D R&D and yards you did a central city that should pop out there it sounded quite Josh. Okay. Then you got share vision, which I can't juncture.

<unk> <unk> <unk> actual I mean, that's your interests that sure.

But the six month ended June Thirtyth once it's funny general and administrative expenses of 3.6 million compared to <unk> 0.9, you.

In the prior year period, a decrease of 5.1 thing.

Decrease was primarily due to the decrease in compensation and related benefit and other general and administrative expenses the increase in bad debt recovery and no impairment losses reported for the three month ended June Thirtyth <unk> point.

Okay blending parent <unk> point 2 billion.

For the three month and they see Kodiac <unk> 2009.

Our our yet so I never get a change on the quality failing to somebody they wish on that yet.

Our ligament punchy family nearby church, one that yet.

I think it's just about it.

It was down either really sure I mean, I didn't mention I know there yet it's what are you from Churchill Chinchilla, what do you think that's your topic downbeat share, which I can't judge or.

Are you doing their channel there, Yeah, Hi, Sheila I bet, you try me again, but changes I'm sure.

Net loss for the three month ended June Thirtyth, 20, 21.7 million compared to net income by me and thinking about 98, E., 48.6% decrease was primarily due to the decrease in depreciate into <unk>.

Depreciation of not operating vessel.

Asian related benefit and other general and administrative expenses.

And no impairment loss recorded for the six month and you won't be 20.

As compared to an impairment loss of 2.5 million for the six month ended June Thirtyth 1990.

Oh link our opinions yard you don't think what seem quits always cheerful I made that already aegion yet points. You can you give them like you might want.

<unk>.

Net income for six months ended June Thirtyth <unk>.

<unk> <unk> <unk> point 8 million.

I had to net income of 3.1 billion in the same period of 2019.

Alright, and Harding yet can you go through can be a run rate nearby fossil I made in Arlington, Virginia home, she can't be around like somebody Michelin.

[noise] that loss attributed to the only company for the three month and they <unk>. So do you want to be 21.6 million what he's been a basic impacted this year.

The net income attributed to the owners of the company or <unk> point Sixmillion Sixtym.

Basic and diluted share in the same <unk> or something.

Already arguing that the arts either this weekend, so Dutch increasingly there was funny that.

Even maybe Chris well, she certainly isn't it creates a chile doing gotten the army.

It's a mental cheap recently appointed Soljacic, we've only had about neutral I make that did not make we'll do it but she should maybe the deal in Chile, and then you got your meal.

Net income I figured it Ah onez something for the six month and it's so do you have 20.1 on one me <unk> Easton her.

Basic and diluted to be share.

Got it net income attributable to the only other company.

Good point that doesn't mean, you bought everything they do you think because it makes you think theory of 2000 feet.

Our <unk> aarding, yet so I know that.

We should think so tell me about like nearby useful I made that she but maybe you ever at her she should enable the but generally the only be I mean, Bobby.

Internet tone, she thinks where you're going to children can be around there.

Oh, that's usually on that yet.

Maybe we'll be right she should enable deal in Chile, and you didn't mean family.

On the balance sheet as of June Thirtyth, something like 2020, Inc. and marine cash cash equivalent with 3.1, though.

Total active with 557.1.

Total ban liability with 283.1.

Yeah, Oh, there's equity 160 million compared to 10.1 million U 400, and <unk> 0.1, 88.8, and 155.1 million respectively.

And the 30 for 2019.

Well just have put that permit ginger aarding Harding won't do essentially seemed I understand there shouldn't be them Galloway one back for Schlumberger.

It sounds like Julie.

Yeah, Yeah cheaper he may yet no don't feel Jakob you laid media software you laid out.

I don't try anyway media, Neil you may yet so yeah, yeah, gentry, Arlington, Virginia, Sharia, especially evidence yet of course, you had been underway jazz <unk> Shalonda yen dismantle Julie.

Yes.

They don't feel that that'd be great watch and buyback posh aligning them.

I don't try anyway, yeah, we've made it.

You can claim we continue focusing on expansion of business and exploration of new fishing grounds. The harvest I first catch me, we are actively planning and exploring more ending the business.

People are not fit and reach the right and it's been a both online and off much.

Meanwhile, we will further exploring E commerce people, we don't be <unk> being tight in <unk>, we develop new distribution channel and it's a China intervention.

Thank you.

[noise] oriented woman's answers your bundle quota here I guess in Buffalo, Utah.

Yeah, what time cancer, well, yes, it sounds like TV told what sort of high transitions out when you come to a certain costs and none of them social Moshe because you have to dipping bunch on page.

Sure well my answers your father, Hi, Yeah, Yeah, Yeah, Hi, Jim, but yes. The shouted initially I watch I'm trying to be on casual pull down syndrome shuffled chewed up shameful about Tony maybe something that should.

Yeah.

[noise], then that John patent about India.

So when you don't share in saying that you might find him another.

Joel where you'll find.

With that operator, let's it's starting to make sure on it.

For the question answer session. Please allow it's a moment to translate to your questions and then bore responses everyone on the call in both English and Chinese.

Oh, thank you.

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Good for auto questions at this time wed like to try to pull back over pretty further closing comments.

Thank you again to all of you put joining though we look forward to speaking with you again in November after we we <unk> third quarter and nine month, and that's where we felt as though we would welcome any visit more often don't sign up thank you.

Thank you that does conclude today's teleconference. You may disconnect. Your lines at this time and have a wonderful day, we thank you for your participation today.