Uni-President China annual earnings expected to see massive growth
By Kathryn Chiu,The China PostTAIPEI, Taiwan -- Uni-President China Holdings LTD.'s (UPCH,統一中控) annual earnings are expected to see significant hikes as five new factories in China are soon to enter mass production, according to reports.
September 13, 2013, 12:06 am TWN
UPCH, the mainland China subsidiary of Uni-President Enterprises Corporation (UPEC,統一企業), is the largest producer of juice drinks and the third largest instant noodles supplier in mainland China.
UPEC General Manager Alex Lo (羅智先) on Thursday said that he expects to see 50 China-based production bases in operation by 2015, and to complete its established goal of the “Blossom Everywhere” project by 2016, meaning UPEC will complete all-area coverage in China — including Tibet.
Although China's economy is going through a crucial stage of restructuring, Lo said that the food industry in China is entering a “golden decade” as the middle class population is rapidly expanding in a massive market of 1.3 billion people.
UPEC has currently divided mainland China's market into nine territories and already built factories in these areas, excluding Harbin in Heilongjiang province and Aksu in Xinjiang province.
As of June 2013, UPCH's 25 production bases in China have turned out instant noodles and beverages while another eleven production bases are now under construction. It is estimated that five of these 11 bases will join in mass production, bringing the number of production bases in operation to 30.
In the years to come, UPCH will continue to expand China's domestic footing by setting up new production bases, particularly in the central Chinese provinces of Hubei, Hunan and Jiangxi.
UPEC Jumps over 3 Percent in Trading
Sources from inside UPEC revealed that the successful implementation of its internal project, “Blossom Everywhere,” will largely contribute to UPCH's annual earnings for 2013.
UPEC revealed that UPCH's annual earnings for 2013 will see significant growth, and a total of 40 production bases will be in operation by the end of 2014.
UPCH's consolidated revenues for the first six months grew by 14.6 percent from the previous year to 12.203 billion renminbi (RMB) while net profit for the same period increased by 13.9 percent on year to 574 million RMB, according to United Evening News.
Up until June, UPEC has invested a total of 42.54 billion RMB in mainland China and hired nearly 40,000 employees.
At the end of yesterday's session, UPEC stock surged 3.19 percent or NT$1.8 to close at NT$58.2.
UPEC is the largest processed food producer in Taiwan, and manufactures and sells non-carbonated beverages and instant noodles.
UPCH was established in 1992. It is incorporated in the Cayman Islands and is headquartered in Shanghai. It launched on the Hong Kong Stock Exchange in 2007 with its IPO price at HK$4.22 per share.