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DaChan FoodAchieves Significant Rebound In Third Quarter Continued Strong Growth in Processed Food Business

 DaChan Food (Asia) Limited ("DaChan Food" or the "Company", stock code: 3999), a leading chicken meat products supplier in the PRC, announced its results for the nine months ended 30 September 2010 on 22 October 2010. In the third quarter, the Company’s operational performance and profitability achieved significant rebound, attributable to recoveries in external markets and continued growth in our processed food business. Turnover grew 2.7% quarter-to-quarter. Gross profit margin also increased to 7.1% from 5.4% in the previous quarter.
 During the period under review, the Company achieved revenue of approximately USD1,020.4 million, representing an increase of 16.2% compared to the same period last year. Profit attributable to equity shareholders was amounted to USD6.0 million.
 The processed food business achieved impressive growth thanks to an optimized product mix, diverse sales channels and outperformance by the brand business. Turnover and gross profit of this segment for the period under review increased by 49% and 35% to approximately USD95.4 million and USD12.2 million respectively compared with the same period last year. The company’s product tracing system has been met with good response from consumers since launch and has boosted both our brand reputation and the popularity of our products. Our efforts to differentiate our products have enhanced our competitive edge as our sales network continued to expand, which in turn has provided support to our financial performance.

 Mr. Han Jia-Hwan, Chairman of the Board of Directors of DaChan Food, said, “The operating environment in 2010 has been challenging due to the surge in prices of corn, soya bean meal as well as labor costs. However, there will be new business opportunities for us, given the rebound in the price of chicken meat amid improving consumer spending of the PRC market.  We will continue to expand the production capacity of the processed food and animal feeds businesses, while keeping a tight lid on costs. We will also strengthen internal controls to further enhance our business performance. Meanwhile, we will expand our processed food business, to cope with future market potential of this sector.”

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