NathanH
10 years ago
Great news I like this this has a funny symbol.
Tianli Agritech, Inc. Completes $3.84 Million Private Placement
WUHAN CITY, China, June 18, 2014 /PRNewswire/ -- Tianli Agritech, Inc. (NASDAQ:OINK) ("Tianli" or the "Company"), a leading producer of breeder hogs, market hogs and black hogs headquartered in Wuhan City, China, today announced that the Company has completed a $3.84 million private placement of its common stock (the "Offering") to Mr. Houliang Yu, a citizen of the PRC.
Pursuant to a Regulation S Subscription Agreement entered into on June 6, 2014, the Company issued and sold 1.6 million shares of its common stock (the "Shares") to Mr. Yu for an aggregate consideration of $3.84 million, or $2.40 per share. The offering price represents an approximately 11.6% premium over the closing price of $2.15 on June 6, 2014. Upon completion of the Offering, the Company had 21,164,000 common shares outstanding, of which Mr. Yu owns approximately 7.56%. The Company intends to use the proceeds from this Offering and cash on hand to pursue accretive M&A opportunities.
Mr. Yu currently resides in Wuhan City, Hubei Province and serves as Chief Financial Officer of Aoxin Holdings Co. Ltd. ("Aoxin"), a diversified holding company whose main business is in industrial park development and operations. Mr. Ping Wang, Tianli's Chairman and Chief Executive Officer, is a major shareholder and Chairman of Aoxin. As a condition of the Offering, Mr. Yu agreed not to sell the Shares for 12 months and thereafter at not less than $2.40 per share.
About Tianli Agritech, Inc.
Tianli Agritech, Inc. is in the business of breeding, raising and selling breeder and market hogs in China and is developing a retail channel for its pork products including high-value, black hog meat. The Company is focused on growing high quality hogs for sale for breeding and meat purposes. The Company conducts genetic, breeding and nutrition research to steadily improve its production capabilities.
Sheikhmarzoog
11 years ago
Tianli Agritech - A Significantly Undervalued And Oversold Stock [View article]
Thanks for your comments. A couple of additional thoughts, which I may formalize into another article in the near future:
So the question everyone asking is whether OINK is a fraud. How can the financials be trusted? How can I be absolutely sure that everything that I read and everything the management team says on the conference calls is the truth. The short answer is that I can't be 100% sure. But here are my arguments for why I believe OINK is the real deal:
1) OINK became public through the traditional IPO process, not a Reverse Merger (or RTO). The IPO process is much
more stringent than the Reverse Merger merger process and requires an extensive amount of due diligence by US regulators. If Tianli wanted to defraud US investors, why would they go through the painful process of the traditional IPO process?
2) Tianli is a very simple company. The assets (i.e., pigs, farms, feed, etc.) and locations of the hog farms are easily verifiable: all locations are listed on the website (http://bit.ly/HKErcv). The company even gives tours to investors (http://bit.ly/HKEtRx).
Also, the retail products can be found in the retail superstores in Wuhan (Wal-Mart, Zon 10, RT Mart).
3) Crowe Horwarth, an audit firm that I would rate "2nd Tier" also
looked at financials for Q2 and Q3 2011. The fact that the financials
did not change during the switch from Sherb most likely means the assets are real. I have a hard time believing two different auditors along with the management team are all conspiring together.
4) I've been in touch with other large long-term investors in the stock and they've also spoken to Management (CFO and Board of Director members) numerous times on their business, strategy, etc. They are all long-time holders of the company and don't have plans to sell their shares any time soon. They also believe OINK is grossly undervalued.
So I added this all up and asked myself, what side would I want to be on: the short side or long side? And the answer is simple: I'd rather be long.
Sheikhmarzoog
11 years ago
Tianli also began retail operations in which they sell branded pork products in 50 major supermarkets around Wuhan City, including Wal-Mart Stores (WMT), Zon 100, and RT Mart. In 2011, the company also entered into exclusivity agreements with 7 local cooperatives in the Enshi Autonomous Prefecture to breed and sell Black Hogs.
Competitive Advantages
A competitive advantage, or what Warren Buffett calls a "moat," is something that gives a company a clear advantage over others and protects it against incursions from the competition. Now breeding, raising, and selling hogs is a commoditized business in China, so you may wonder if Tianli has a competitive advantage at all. However, I believe there are 3 distinct competitive advantages that Tianli has relative to other hog farmers: the exclusivity agreements to breed and raise Black Hogs, economies of scale, and OINK's vertically integrated platform.
Exclusive Black Hog Program - this competitive advantage is one of Tianli's greatest assets, and one that I believe most investors don't seem to appreciate. Under this program, Tianli has the exclusive right over 10 years to breed and sell Enshi black hogs in the Enshi Autonomous Prefecture in Hubei. Based on Company estimates, black hog meat commands a price premium of about 35% relative to typical lean pork meat. The Company is targeting a black hog production capacity of 100,000 by the end of 2012 and a long run capacity of 1 million. Though I admit that the 1 million capacity may be a stretch, I can easily see Tianli being able to reach a production capacity of 200,000 black hogs by the end of 2013. The beauty of this program is that participating farmers are obligated to purchase feed, vaccines, and other supplies from Tianli and also sell the hogs back to Tianli at production costs. Tianli will be the only provider of black hogs in that region for the next 10 years.
Sheikhmarzoog
11 years ago
Book value 4$ , nasdaq capital listing requirements bid price for at least 10 working days above 1$
WUHAN CITY, China, Aug. 5, 2013 /PRNewswire/ -- Tianli Agritech, Inc. (NASDAQ:OINK) ("Tianli" or the "Company"), a leading producer of breeder hogs, market hogs and black hogs, headquartered in Wuhan City, China, today announced that it received a letter, dated August 2, 2013, from the Nasdaq Stock Market notifying the Company that its application to transfer its listing from NASDAQ Global Market to NASDAQ Capital Market has been approved, effective with the start of trading on Tuesday, August 6, 2013. Tianli will continue to trade under its existing ticker symbol "OINK".
Additionally, the Nasdaq Stock Market granted Tianli an additional 180-day period, or until February 3, 2014, to regain compliance with Nasdaq's minimum $1.00 bid price per share rule for continued listing on the Nasdaq Capital Market. To regain compliance, the closing bid price of the Company's common stock must be at or above $1.00 per share for a minimum of 10 consecutive business days prior to February 3, 2014.
This will never go below 1$ after Friday, heading to 4$ soon
steeledge
14 years ago
First glance at earnings look pretty good.
WUHAN CITY, CHINA--(Marketwire - 11/11/10) - Tianli Agritech, Inc. (NASDAQ:OINK - News), a leading producer of breeder and meat hogs headquartered in Wuhan City, China, today announced its financial results for the three and nine month periods ended September 30, 2010. The Company anticipates filing its Form 10-Q for the period ended September 30, 2010 before 7:00 am ET on Friday, November 12, in advance of its conference call with investors which will occur at 10:00 am ET the same day.
Third Quarter 2010 Financial Highlights
-- Revenue was $5.5 million, representing an increase of 76% as compared
to the third quarter of 2009
-- Breeder hog revenue increased 83% and meat hog revenues increased 70%
over the comparable 2009 period. The higher margin breeder revenue
comprised 46% of the Company's revenue in the third quarter
-- Gross profit more than doubled to $2.4 million with a gross margin of
44.2%, up more than six percentage points from last year's level
-- Net income was $2.2 million, up 106% from 2009's third quarter,
resulting in earnings per share of $0.23
Summarized Third Quarter 2010 Results
(Dollar Figures Rounded - Percentages based on Actual Results)
3rd Q 2010 3rd Q 2009 Increase
--------------- --------------- --------------
Sales $5.5 million $3.2 million 76%
--------------- --------------- --------------
Gross Profit $2.4 million $1.2 million 104%
--------------- --------------- --------------
Net Income $2.2 million $1.1 million 106%
--------------- --------------- --------------
EPS* $0.23 $0.13 77%
--------------- --------------- --------------
* EPS calculations are based on the weighted average 9.7 million shares outstanding during the 3rd Quarter of 2010 and 8.1 million shares outstanding during the 3rd Quarter of 2009, reflecting the effect of the Company's July 2010 IPO.
Operating expenses in the quarter ended September 30, 2010 were approximately $352,000 as compared to approximately $107,000 in 2009. This increase is largely attributed to the growth of the capacity of the Company's farms and the additional costs pertaining to the Company's now being a public company. Separately, the Company also benefited from a provincial subsidy of $132,000 received in the third quarter.
As an agricultural company, Tianli is exempt from corporate income taxes (EIT) and valued added tax (VAT). Net income for the period ended September 30, 2010 was $2.2 million and diluted earnings per share was $0.23.
Tianli's Chairwoman and CEO, Ms. Hanying Li, stated, "We continue to witness the strong performance of our business as evidenced by the third quarter results. This strengthens our belief that focusing on the genetic quality of our stock has enabled us to become a preferred source of breeder hogs, resulting in higher margins while reinforcing the quality positioning of the Tianli brand. With the capital provided by our IPO proceeds, we are now preparing to significantly expand the Company's capacity while further enhancing the quality of our products. Tianli is currently in active discussions regarding the potential acquisition of various hog farms, and this expansion would better position the Company to benefit from China's continued growth in its demand for pork."
Operational Overview
Tianli sells breeder hogs, which are purchased by other hog farms to increase their production, and meat hogs, which are sent to pork processing facilities for packaging of fresh, refrigerated or frozen pork products for sale to consumers. Tianli has concentrated on the breeder hog market and continually improving the genetics, nutrition and raising of healthy hogs. The gross margin for breeder hogs is higher than that of meat hogs due to the higher price that quality breeder hogs can generate, as well as the lower feed and other costs as breeder hogs are generally sold at a younger age than meat hogs. One of the methods that Tianli utilizes to improve the health of its hogs is its proprietary probiotic enhanced premix feed. The Company believes that this has enabled it to decrease mortality, incur less veterinary care and medicine costs, and thus increase operating profits.
Sales by Products
(Dollar Figures Rounded - Percentages based on Actual Results)
Quarter Ended 9/30/2010 Quarter Ended 9/30/2009
-------------------------- --------------------------
No. of Hogs Sales No. of Hogs Sales
Products Sold Revenues Sold Revenues
-------- ----------- ------------- ----------- -------------
Breeder Hogs 9,977 $ 2.6 million 5,859 $ 1.4 million
Meat Hogs 15,443 $ 3.0 million 9,806 $ 1.8 million
----------- ------------- ----------- -------------
Total 25,420 $ 5.5 million 15,665 $ 3.2 million
Breeder hog revenues in the third quarter of 2010 increased by 83% over the comparable 2009 period, and comprised 46% of revenues in the quarter. The Company's sales of 9,977 breeder hogs in the quarter represented a 70% increase year-over-year, while the unit sales of meat hogs increased by approximately 57%, and the increased volume of hogs sold was the major factor in the revenue increase. The gross margin on the sales of breeders increased to 56% from the prior year level of 50% while the meat hog margin increased to 34% from 29%, reflecting the benefit of 7% higher prices.
Nine Month 2010 Financial Highlights
-- Revenue was $15.5 million, an increase of 69% as compared to the first
nine months of 2009
-- Breeder hog revenue increased over 150% while meat hog revenue
increased 38% over the comparable 2009 period. As a result, breeder
revenue comprised 40% of the Company's total revenue during the first
nine months
-- Gross profit more than doubled to $6.7 million with a gross margin of
43.3%, up more than seven percentage points from last year's level
-- Net income was $6.0 million, up 91% from 2009's first nine months
Summarized Nine Months 2010 Results
(Dollar Figures Rounded - Percentages based on Actual Results)
Nine Months Nine Months
2010 2009 Increase
--------------- --------------- --------------
Sales $15.5 million $9.2 million 69%
--------------- --------------- --------------
Gross Profit $6.7 million $3.3 million 103%
--------------- --------------- --------------
Net Income $6.0 million $3.1 million 91%
--------------- --------------- --------------
EPS* $0.69 $0.39 77%
--------------- --------------- --------------
* EPS calculations are based on the weighted average 8.7 million shares outstanding during the first nine months of 2010 and 8.1 million outstanding during the first nine months of 2009.
Revenues from breeder hogs for the nine months ended September 30, 2010 increased by approximately 153% while the revenues for the sale of meat hogs increased by 38%. The revenue increase was largely the result of the hogs sold increasing from 47,202 in the 2009 period to 72,536 in 2010, a 54% gain. The higher proportion of the more profitable breeder hog sales significantly benefited the Company's gross profit margins for the nine month period, which increased by over seven percentage points to 43.3%.
2010 Guidance
The Company expects to report full year 2010 revenues of approximately $21 million, net income of $8.1 million to $8.3 million, and EPS of $0.90 to $0.92.
Financial Position
As of September 30, 2010, the Company had $10.9 million in cash, which included net proceeds from its IPO financing secured in July 2010, compared to $2.0 million as of December 31, 2009. Working capital was $13.7 million, up from $2.1 million as of December 31, 2009. The Company conducts its sales on cash on delivery basis and thus has no accounts receivable. Inventories were $3.7 million, compared to $3.3 million as of December 31, 2009, and the Company had a $400,000 refundable deposit for a potential acquisition being held in escrow. Stockholders' equity increased 125% to $28.5 million during the nine month period ended September 30, 2010. Cash flow from operations during the first nine months of 2010 was $6.4 million. Stockholders' equity increased 125% to $28.5 million during the nine month period ended September 30.
lmcat
14 years ago
Tianli Agritech, Inc. Attracting Bullish Investors
October 12, 2010 03:33
Tianli Agritech, Inc. (OINK) established a new 52-week high yesterday at $4.88. Clearly investors are enthusiastic about the firm's prospects. The rally was accompanied by higher than average volume, which adds to the momentum behind yesterday's move.
The question is, can OINK continue moving higher? The stock has gained 48.11% during the past month, has a price-to-book value of 2.7 and a PEG ratio of 0.
Studies have shown that investors who buy stocks after hitting yearly highs during a bull market achieve higher average returns than the broad market indexes. This is a great example of the trader adage that "the trend is your friend." However, these historical results are based on large averages---and some bullish momentum in the market. It is much more difficult to say whether OINK, as a single stock, will continue to hit new highs. But for the time being, things look promising.
http://www.learningmarkets.com/News-Feed/2010101252755/tianli-agritech-inc-attracting-bullish-investors-oink-ul-wilc.html
Note: OINK hit another new high at $5.90 today.
lmcat
steeledge
14 years ago
Took good-sized position in this hogger for two reasons: 1) their growth, while perhaps not sustainable, is excellent, and 2) despite that they have traded down from their $6 IPO price down below $4. Stock seems a lot cheaper than its older cousin HOGS.
WUHAN CITY, CHINA--(Marketwire - 07/29/10) - Tianli Agritech, Inc. (NASDAQ:OINK - News), a leading hog producing company headquartered in Wuhan, China, announced today that preliminary results for the second quarter ended June 30, 2010 indicate that revenue increased 88% to $5.4 million from $2.9 million recorded in the second quarter of 2009.
Net income in the quarter rose 148% to $2.1 million from $0.9 million in the comparable 2009 period. Revenue for the first six months of 2010 increased 65% to $9.9 million, as compared to revenue of $6.0 million of the first six months of 2009, and net income was $3.8 million, up 84% from the 2009 level. The company said that earnings per share, based on the 8,125,000 common shares outstanding as of June 30, 2010, were $0.26 for the second quarter and $0.47 for the first six months of 2010.
Tianli's chief executive officer, Ms. Hanying Li, said, "We are pleased with the increased sales in both our breeder and meat hogs, which resulted in greater revenues. We were able to sell more hogs because we expanded the number of farms we operate and thus have greater capacity than last year. Our net income grew even more quickly than our revenues because we sold a higher percentage of our more profitable breeder hogs than meat hogs and because we have seen success in our cost containment efforts."
These results and the earnings per share do not reflect the impact of the issuance of 2,000,000 shares of the company's common stock resulting from its recent initial public offering, which was completed on July 20, 2010.
Trade smarter, not harder: Unleash your inner pro with our toolkit and live discussions.
Huggy Bear
11 years ago
cowboyinvestor69
11 years ago
declaes
11 years ago
Penny Roger$
11 years ago
Hot Features
Premium
