Asian Citrus Holdings Ltd Winter Orange Crop (0640U)
November 27 2013 - 9:00AM
UK Regulatory
TIDMACHL
RNS Number : 0640U
Asian Citrus Holdings Ltd
27 November 2013
For immediate release 27 November 2013
Asian Citrus Holdings Limited
("Asian Citrus" or "the Company")
Winter Orange Crop
Asian Citrus announces that the Group (the Company together with
its subsidiaries) has concluded negotiations on the pricing with
customers for the forthcoming winter orange crop.
Update for average selling price
Based on the current information, it is anticipated that there
will be a year on year decrease in the average selling price of
winter orange crop of approximately 3% for the Hepu Plantation and
17% for the Xinfeng Plantation.
The overall market supply of winter navel oranges in the Gannan
area (the Southern part of Jiangxi province where the Group's
Xinfeng Plantation is located) has increased significantly compared
to last year. This has resulted from an increase in the average
maturity and yield of orange trees reaching the peak level across
the region. Additionally, during this month several reports
appeared in local media that dyed navel oranges were being sold in
the Gannan areas. Relevant local Government Authorities have
investigated the incident and informed the public that only a
relatively small quantity of oranges and dealers were involved. The
incident was not related to Asian Citrus and our oranges. However,
this incident has affected customer confidence in the domestic
orange market as a whole and, in particular, the navel oranges from
Jiangxi province, which has negatively impacted the selling prices
of winter orange crop for Xinfeng Plantation.
Update for winter orange crop production volume
As part of the ongoing replanting programme (which was mentioned
in the Company's announcement of annual results for the year ended
30 June 2013), the last batch of 48,058 winter orange trees in the
Hepu Plantation were replaced by approximately 220,000 banana trees
in August 2013, leading to an anticipated reduction to winter
orange production of the Hepu Plantation. Based on the recently
signed supply agreements, the Group will supply a total of 26,300
tonnes winter oranges from Hepu Plantation in the second half of
2013, representing a decrease of 20% in comparison to the
production output of 32,838 tonnes in the same period last
year.
Major typhoons in the summer of 2013 caused no substantial
direct damage to the crops of Hepu Plantation and Xinfeng
Plantation, though the inclement weather and persistent heavy
rainfall between April and August 2013 did have a slight negative
impact in the Xinfeng Plantation. According to the recently signed
supply agreements, the supply of winter oranges from Xinfeng
Plantation decreased to 123,400 tonnes in the second half of 2013.
This represents a decrease of approximately 4% in comparison to the
production output of 128,395 tonnes in the same period last
year.
As a result of a decrease in the production volume and average
selling price of the winter orange crop, the Board estimates there
will be a reduction in revenue and profit generated from the
Group's agricultural produce segment for the financial year ending
30 June 2014 compared to last year's actual figures.
For further enquires:
Asian Citrus
Tony Tong / Tommy Tong, Executive
Director +852 2559 0323
Cantor Fitzgerald Europe (NOMAD and
Joint Broker)
Rick Thompson / David Foreman (Corporate
Finance) +44 (0) 20 7894 7000
Richard Redmayne (Corporate Broking)
Liberum Capital Limited (Joint Broker)
Clayton Bush / Richard Bootle +44 (0) 20 3100 2222
Weber Shandwick Financial +44 (0) 020 7067 0700
Nick Oborne, Stephanie Badjonat,
John Moriarty
This information is provided by RNS
The company news service from the London Stock Exchange
END
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