Q3 2020 Pingtan Marine Enterprise Ltd Earnings Call
[music].
Hello, and welcome to the Pingtan Marine enterprise, 2023rd quarter, and nine months financial results Conference call and webcast. At this time all participants are in listen only mode.
Question and answer session will follow the formal presentation.
I didn't want to require operator assistance. Please press star zero under telephone keypad. As a reminder, this conference is being recorded if sound my pleasure to turn the call over to Jason.
Interpreter pure rock communications. Please go ahead.
Thanks, operator.
Good morning, everyone. Thank you for joining us.
Sure.
Oh sure just where are you.
Each of the press release announcing its what do you want.
I just wanted to take water I'm not I'm not sure results are available on the Marines website.
Sounds good.
The Marines I'll call.
Why do you keep an eye on chicken Sandwich, Shamble Rd Rd, and it's actually quite yesterday, yeah, I love it.
So youre not cheap I actually have jumped into the <unk>.
Sometimes.
The marine Dot com.
You're also welcome to contact us like email to PD Marine.
That's pure hypochlorous I'll call now we will be happy to send you a copy.
It's true that the broadcast will be made available at <unk>.
On its website.
Well I can't say so what are your thoughts on the idea that you keep your marine.
Your phone calls.
Next I'll call they actually went up.
Well you can you talk about your Wendell Black Yeah, Craig Hallum.
Yes, I guess you can supplement what your kids, where you're going to be in.
Before we get started I would like to remind everyone that this conference call and any accompanying nature. It's got security to contain certain forward looking statements.
The safe Harbor provisions of the private Securities Litigation Reform Act of 1995.
Well, you can actually do Chad keetch and going.
They are we do that we don't call them real quickly I watch and see how it could.
Let me, let transaction I'm sure.
[laughter], what you told that you haven't been tried suits in Kabul I'm trying to help on the greedy.
Investors are cautioned that such forward looking statements involve risk and uncertainties that may.
Yes, I think that marine's business and prospects and results of operations.
Right.
As detailed in peacetime Marines filings with the Securities and Exchange Commission.
I didn't hear a teacher transaction trashy Valeant Shaggy dog Commingling, something I know you can't do you can't do that paychex corporate training to answer if.
Hi, I'm, especially I think Joe you want to keep rather than having it hurts your future chunky, Belgium.
I'd now like to take a moment to all lined up format today's call in order to take care of all the conference calls.
This call will be conducted in both English and Chinese first of all the Companys Chairman and CEO Mr. Cheryl will lead a prepared opening statement in Mandarin, which I will then read it niche.
I will then turn the conference call to mitigate the need to get that.
Marines CFO, who will.
Continue with the presentation.
Finished we will open the floor for questions.
It's actually it's all the shots you cannot yeah, probably neutral we're not talking about so the topic.
Anyway feel or something so it's yet.
I actually don't see any change to that John Yes, shakes nutrition, what well see it was actually yeah go ahead.
No that's fine.
I tell you I'm, sorry, no I insurance and other consumer high LTV age I didn't see that shows you what younger than tangent.
How did you go about that.
Well I guess, you'll let me get paid cousins and why do you think you want.
The question and answer session. He's not allow us a moment to try to make it the questions and then we will respond to everyone on the call in both English and Chinese.
Well I'm not going to give them. So yes, you will find the no one Joel what im trying to think about.
With that I will turn call over to Pete The Marines, Chairman and CEO Mr. Shimon Joel Please welcome Mr Cool.
And that that's your G.I.X., yet, which I won't get into job demonstrates interesting one.
Okay.
Well I didn't give that guidance.
Once you're buying.
Okay.
No no no no.
[laughter].
Hi, I'm eating balls Oh.
Okay.
Oh sure.
Hi.
Oh, sorry.
Ladies and gentlemen, good morning.
Thanks for joining our 2020, some corner nine months conference call.
I think.
Oh I'm.
Hi, Andy.
Oh single.
[laughter].
[laughter] well know exactly you know not use all told me.
[laughter] you know.
[laughter].
Right.
[laughter].
Although the overall economic environment in China continues to be impacted by the cold 19 pandemic during the second quarter.
Really the thing about performance for the quarter with revenue, increasing by 38.2% and our sales revenues sales volumes, increasing by 69.3% compare.
Compared to the same period the prior.
Hi to prior year.
[laughter].
[laughter].
Oh.
Oh Wow.
You'll see.
[laughter] you don't really know.
Hello, My name is so you're talking about what do you see Oh Wow.
[laughter].
Recently, we haven't made a series of positive announcements about the operations of the peak times, including Penn we'd be largest scale squid jigging vessels, stating operations and 21 patients that's age they turn into fishing grounds after with your repair and mixed nuts.
Yeah.
Well, you know well [laughter] over.
Sure.
Oh well.
Well it sounds like.
Hi, good morning.
Okay.
Hi, [laughter] three tall [laughter] Hercules.
Oh no no.
[laughter].
In addition.
Now that same thing international Marine industry on the logistics Park, our strategic investment project that is a key step in our long term growth strategy and an important linked to our indexes.
Their business is expected to commence operation at the end of this year.
[laughter] yeah.
[laughter] for limelight.
Oh excuse me.
[laughter] yeah.
How are you.
Oh yeah.
You're welcome.
Oh.
Oh Im sorry.
Oh, Oh, Oh [laughter] right now are you know.
[laughter].
Well [laughter], where do you see.
Oh yeah.
[laughter].
Hi, Matt.
Uh huh.
Uh huh.
Oh, sorry.
Yes.
Sure Yeah, Oh my God.
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Im sorry international Marine industry, and I'm not sure if it was.
Robert is on land area about 40000 square meters and it has a floor age Oh.
80000 square meters.
And that does include some of the girl and the low temperature freezing center.
Fish processing plant I.
Distribution centre and office complex.
[laughter].
Marine industry Park integrates multiple functions such as cold chain logistics.
Yeah, prospecting and body that's drilled storage.
Once in operation the fish part second part and well be able to process 100000 times catchers annually.
I think somewhere in the low temperature at Verizon Center will provide over 250000 times annual storage capacity.
Well I think James.
Good how.
[laughter] pretty easily.
Oh, sorry.
Uh huh.
Uh huh.
Okay.
Yeah, John it's probably premature.
Hi.
All right.
Okay. So no no yeah.
Oh, Oh, Oh, well.
Okay.
Oh, Oh Oh.
Oh, sorry.
Hi, John.
Johnny.
[laughter] Oh I see.
Yeah.
[laughter].
[laughter].
Hello.
Oh, sorry.
We have to reach a consensus with the GE deal well be operating entity of the pin pad international Marine industry the legitimate park.
That the marine industry Park will become be consigned fish processing base occupying the.
Spot local processing packaging distributing pin pad to retail products. Currently have 89 complex thing that's also operating the oceans.
That's the opening of the marine industry Art will benefit our earnings in 2021.
Oh.
Oh I'm sorry.
Well I mean I think.
Oh no no no.
Yeah.
No [laughter] hold her oh.
[laughter].
[laughter] anything that can go beyond that.
We believe that these are very good developments will have a positive impact on our results for the fourth quarter and a maybe a good foundation for their development in 2021.
And now I am sure you're getting off the ground.
No no no.
We've also closed.
Oh no.
No no. Please.
Oh no.
No no no no.
Okay.
Oh, you don't feel he's here.
[noise] day.
As always.
As always seems like marine we'll keep investors apprised of all aspects of what's going on in some pockets and I will welcome constructive suggestions and exactly recommendations.
Yeah.
Well.
So.
Well I mean, Canada dry.
Okay.
Oh well.
Yeah, So you're talking you know oh, okay.
Oh, Hi, Jorge well [laughter] kinda, yet you here don't shoot.
[laughter] Yeah go ahead pardon.
No not at all.
I don't know.
[laughter].
Now I would like to introduce our CFO Mr. de Niro, who will discuss the operational and financial results for the third quarter and nine months 2020.
On behalf of our company I look forward to meeting in person and as always welcome to all headquartered James We don't take the floor. Thank you.
Since that you actually Pete I actually had a chance to show some kind of why you only means you Andrew I'm going to buy it.
He's welcome the 30 year old Chief Financial Officer.
Right enterprise, Sir the floor is yours.
The more thank you good morning, and welcome everyone.
Regarding the factor affecting <unk> and results of operations. Please refer to our when P 23rd quarter and nine months.
Earning press release and 10-Q, we filed.
Today, I would describe pingping 2020 third quarter, and nine months operation and financial results.
Good yeah.
That's helpful pointing that out.
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Well, it's pretty month and.
Ended September Thirtyth when people want to eat became the fourth is revenue of.
<unk> point 4 million, an increase of 4.3 million or 38.2% compared to the same period in 2019.
Volume increased by 69.3, but then.
14.7 million eight deep in the three months ended September Thirtyth, when Pete Wentz <unk>.
Compared to 8.7 million K D. In the same period of 2019.
Average unit sales price decreased 18.6% in the three months ended September thirtyth well.
Pete Wentz <unk> compared to the same period in 2009.
Hardly heard anything you can do to gain clarity here. So that you can do about social I know yet when do you think about 500 sanctioned by their hot so yes about central on that yet.
Hardy Hardy yet you printed in social Dallas, you can't talk about she she wants Indian art immediately upon sheltered alleys buybacks useful I'm going to be Uh huh.
Anything else I can just do it at that.
You can get there that's how can she didn't not only shows that you are you doing I point to jump shot Dallas back on to ship I Didnt.
What nine month ended September Thirtyth, Twentytwenty Pingtan reported revenue.
The 6.2 million compared to 55.1 million.
The nine month in September.
Nine month into 20 points.
Sales volume in the nine months ended September Thirtyth Twentytwenty increased by 50 to 52.2 about.
50 million kg from 32.9 million kg in the nine month and that's.
But thirtyth 2019.
Average unit.
<unk> decreased by 33.3%.
In the nine months ended September so.
Oh, Yes, 2020, <unk> as compared to the same period in 2019.
Oh, they are to either centers.
Basically he actually you can say about actually eliminated Arlington, Virginia home cheap so that you can use it on that yet.
Hardly aarding and changes I got to check it out your way, which I wont go again.
Hardy eating at home to shelter in Dallas that Jeff how about change why would you hold even though I can do the job.
Check engine going down we showed that he already eating at home teach I'm sad that I can do it's actually send it back.
For the three and nine months ended September Thirtyth went between the increase in revenue compared to 2018 was attributed to the change in different sales mix and increase.
Sales volume as a result of more but they you know operation.
Well the three and nine months ended September Thirtyth Twentytwenty decrease.
The average unit sales price as compared to the same period in 2019, but that should be added to the fishing BC you hit the high volume with the high sales volume being sold at a lower selling price.
Indian oceans, good what all major product for the three month and the nine months ended September Thirtyth 2020, and increase in vessel catching Indian Ocean squid in the Indian Ocean.
Led to an increased supply.
Which negatively affect the average unit sales price.
Most of my.
Right I expect it to continue for the remainder of the year 2022.
Such increase supply as well, we streamed to mean Adam.
Peck of Cold at night team.
Yeah sure Rd Rd into your sensor that these benches it could change I got it yes.
We can hear show so shiny kinda once you've done that drug I issue shelf will trend into the whole thing you do well yeah. There you try actually that moved out sure does show that you're sharing things out.
Yeah sure Arnie Harding into that essentially would that be budgeting, what they're going to try to keep it going down we show a job shop.
Shiny Penny that puts you got.
Sure. So what else is all to your question, but actually got Justin.
Yes, we're already hard yet see exactly the chances are that the all time gets injured you didn't do that again.
Well, what Tom will not easy out either for you or you could actually that you're talking about.
Sadly going out of them got great.
Hey, Chuck you mentioned your family showed no change on that video itself.
Oh, you're talking about going ahead and things that you guys. She wants to you can you talk.
Josh each of the major.
And you can get done we showed yeah. So art art English language, then that seem to be.
Gross profit for the three months ended September Thirtyth when people didn't beat was 1.7 million representing.
1.9 million lower or.
53.7% compared to gross profit of 3.6 million for the same friedman and bit <unk> Thirtyth 2009.
Our new yard and yet you think you do a multi year or late she schlotman shouldn't complementary audio where somebody wish on the yeah yeah.
Saipem, just your Sunday and she can shop she wants it yet.
For the three months ended September Thirtyth Twentytwenty maintain gross margin was 10.7%.
Get to 38.1% in the same prior year period.
Oh, no I didn't see 72, Maliti a passenger should they actually are.
Pardon me doing it punching bodyweight passenger sunshine.
Gross profit.
For the nine months ended September Thirtyth, when T 29.6 million, representing 7.4 million lower for 43.4%.
As compared to gross margin profit.
A 16.9 million.
For the nine months ended September Thirtyth 2019.
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Well the nine months ended September Thirtyth Twentytwenty gross margin decreased.
To 17% from 30.7% in the same period of 2019.
R&D hardening their centers they get a multi do it that's understood she already eaten yet on cheap money either so I think it's actually that suit.
The decrease in gross margin for the three and nine months ended September Thirtyth wouldnt be 20 as compared to.
Did the same period.
But the mid 32 does that mean he was due to the decrease in average unit sales price like 8.6% and 33.3%.
Respectively, as well as the increase in cost due to increased.
It could be in production activity.
Hey, TCPC about feels to me like Indian Ocean Squid is market price was on the lowest thought.
And the market price of frozen seafood was expected due to cope with Nike <unk> debit, which together led to a decrease in gross margin.
Alright, hardening and you can do that centrally cleared up all the beach.
Washington, They just didnt tally showed up sell shine and she can get shutdown a passenger she bought it well I couldn't do it sounds a bit is that.
Oh sure, sometimes a little more color that should that trend, but it sounds like.
That's helpful to hold up your options or should it be I know you should know that there can be a JV seems like anything like that.
We don't have time didn't I should say.
Should I even said.
Alger multi jackie.
Selling expenses was 1.3 million for the three month.
Ended September Thirtyth, Twentytwenty, compared 2.7 million for the same period, but.
Well just for the prior year period.
The decrease was due to.
In short he joins caused doors, he that's including the charge as a result of an increasing the number of vessels being in school.
The number of deliveries from port to the warehouse in China and India.
Increasing satellite communication he led the fishing, but.
I mean, I didn't see it back because I should say you know what you back benchmarking it.
Hardly anything and publishing social frequently she saw their structural problems then got out to all your nature you try pull through that but yeah. We got a little color. There you called out they've got shut off all chapter it okay, well I don't see why did you.
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For the nine months ended September Thirtyth 20 points selling expenses were 3.3 million compared to 1.9 million for the same period 2019. The increase was due to reasons described above.
Already heard anything changes there that show for you.
I'm bisexual on it already.
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For the three months ended September Thirtyth.
Btwenty General and administrative expenses was 1.6 million compared to 1.5 million.
In the prior year period.
An increase of 8.1 million.
Or 2.7%.
Hi, there I didn't hear you Frank usually they seem to figure out why isn't.
Sure I know yet all right.
Equally important do you feel like you buy shalonda, yet only been down yet still aren't yet sends out back into our that she.
For the nine month ended September 30 years, Twentytwenty General and administrative expenses were 5.2 million compared to 6 million.
In the prior year period.
Decrease of 8.8 million or 14.2%.
Oh really aren't any changes or any other things are going pretty old orchard.
Oh sure I know you.
Arlington, Virginia once you figure that you might Wanna, yet only didn't change out yet fashion there yet yeah, maybe I can just shifted yet.
Net income for the three months ended September Thirtyth, 20, 21.8 million compared to net income.
4 million in the same period of 2019, a decrease of 80, 82.3%.
Alright, I didn't hear you certainty that consistently around like fashion there yet.
Hardening eating at home cheap generally sit back so that's why I made that only down <unk> five and your thoughts are there.
But the nine months ended September Thirtyth 2020, net income was 7.5 million the slight decrease a slight increase 4.8% compared to the prior year period.
Are they aren't image sensors are yet consistent he or she back in July.
We don't that country.
For the three months ended September Thirtyth 2020, net income to the owner of the company 1.7 million or one cents per basic and diluted share compared to net income for the owner of the company woman mean or five.
Five cents per basic and diluted share in the same period of 2019.
Arnie Aarding and you can do the research.
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Amazing so he or she should imagine show you. Julie then Daniel you May Oh.
Are you doing in punchy basically equal to its older generally it's about one day that you could imagine show you. What's your major actually generally doing their names in there yes.
For the nine months ended September Thirtyth 2020, net income to the owner of the company with 6.8 million or nine cents per basic and diluted share compared to net income for the owner of the company.
<unk> point, sevenmillion or nine cents per basic and diluted share in the same.
2019.
Hardly hardening intentionally usually going to build that can't be right nearby Bosh why may yet see them isn't fully that's usually maybe show you Julie Cindy I mean, given that you already aegion endpoint cheap [laughter].
It's over that 10 year old it Neal that's just one day that she's done maybe actually she shouldn't they didn't show Julie thing Denlinger Nate.
On the balance sheet as of September 30 at 20 point Pete.
He thinks cash and cash equivalents were 3.1 million total AD sale of 517.7.
Total current liabilities were 111.3 million and shareholder equity was 166.8 million.
Care to 10.1 million 404.1 million 88.8 million and 155.1 million respectively at September 32000.
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Yeah, just hardy Hardy and yet you're essentially not high on the city or shouldn't do that now will somebody especially on the personnel.
Person on some two year way yeah.
Yeah, Yeah yeah.
Well Jack could you hear me.
Hmm.
Okay. Yeah that you didn't see he made in Sarnia or yet you had your Arlington, Virginia, Sharia factor either that Sensient faults and didn't think that was a really chancing nishu I may yet.
It sounds like you got it yes, there you know that they don't feel that Colby yet.
<unk> father fashion again, we don't see any other media.
To conclude.
He think continued to focus on expansion of business and export business and exploration of new fishing territories, the public side, but catch me if.
But the increase I'll sleep when largest skill fishing, but those with latest technology. Meanwhile, we actively promote product seeking new plane and develop new distribution channel, we kinda, England.
<unk>.
With our ultimate.
Aim to reach directly to end consumers.
Deep in Pink Tang brand influence and <unk> and they tie into speaking thank you.
Good morning, Andrew.
The young teens, you truly toward that yeah, well actually it seemed a little high.
Sure, you, which I'm going to halt boy off in Colombo, She wants to actually do the talking we find people called out and they're trying to hold true for me to do two blocks and travel and the champion induction cool thing toward actually that's helpful. She bought obviously doing the beecher should get easier conventional pager injection.
I'm not sure I exactly why trying to try to get people I guess, you said it I guess.
Ken Janke I wouldn't I wouldn't dot one deal that was about one there don't seem to enjoy their time and I went to Joel showing you laid out.
With that operator, that's it started to be too I know.
The question and answer session. Please allow us a moment to translate the question.
And then would you ever will respond to everyone on the call in both English and Chinese.
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One moment, please while we poll for questions.
Once again Thats star one to be placed in the question queue.
Once again, ladies and gentlemen, if you'd like to be placed in the question queue. Please press star one or telephone keypad okay.
Information tone will indicate your line is in the question queue.
Our first question today is coming from poverty Johnson from interact provide is alive.
Thank you for taking my question and congratulations on the progress in the quarter.
My question relates to your direct to consumer business today, all your sales are largely been in wholesale.
And going forward when you start using other channels like J.D. or Bob or others. What are the key things to watch for as you build your brand if.
If you could help us understand the timing and margin implications that would be appreciated.
Yes, I've got you and then walk into it wouldn't take them into a phase I guess thinking about threed, sometimes they do I hope that you.
Got you know whats injury, I'd say, when we bought them all that much at all matching I actually can't you just true a peep out I'm not sure that's all pretty much.
Social understands that all makes out kind of watch it shall budgeting Luna gold more sure most high winds out well I'm not sure John do you want to sound seemed go off of your honor Bob I'm about to checking I know after she comes from how much impact you want more when you have that you had that you're seeing some kinda yep.
Actually I wasn't sure don't you sell more sure enough to get.
That sounds good.
Oh.
Well no.
Absolutely.
Oh.
[laughter] many years know that most well maintained.
How do you feel though [laughter].
No no sorry, [laughter] I know and I think I understand that you know when free yeah, I totally get hurt or let me tell.
Oh sure.
Right.
You got it won't Oh plans [laughter] certain kind of how we are hopeful they will not go into anybody well not only are we going to all.
Sure thing anything all that well.
Well, nothing Oh, no not right.
Okay I.
I feel my answer and I can tell you that Oh right.
Right.
Oh yeah.
Oh, yes.
But ER.
[laughter] call talking about [laughter] went away.
ER.
No no sorry.
Thank you for your question.
With regard to to be directed retail business actually buybuy injury be among others are a in our options and also where open any discussions with other companies like a young fleet and also the how bad the supplies business, whereas wall and also we are discussing the possibility.
The Brent I'll call it too I believe it's in a way that it is beneficial to P. M.
And after they'd be probably not been pandemic.
Well I'll make a full deployments Apollo directly the retail business and though we haven't been except they've got they wouldn't let alone the parties on call to.
Oh come up with different strategies and make mention implementation of that strategy and it will they be missed strategy and the relevance of pilots in a timely fashion. Thank you.
Thank you.
Thank you as a reminder, that star one to be placed in the question queue.
One moment, please what we poll for questions.
If I have no further questions I'll turn the floor back over to management for any further or closing comments.
Thank you Phil Thanks.
Hey, Thanks again to all of you for joining US we look forward to speaking with you again in March 2021.
After we report our fourth quarter and year as financial results as always we welcome every any visitors back the 12 office it to go China.
Thank you and have a good day.
Thank you that does conclude today's teleconference. You have talked about this.
Oh. Please go ahead.
Okay got it I got I got in here that they see that me and tell you that when people are arguing that you could do the whole time, then I will give you should do about that that's a chocolate. That's why you saw the cope with it that much we don't buy won't hit them yet is it.
Thank you that does conclude today's teleconference. You may disconnect. Your line at this time and have a wonderful day, we thank you for your participation today.