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Haikui Seafood asserts itself against tough market conditions - Seite 2

positive development is mainly due to foreign exchange losses recognised in
the first half-year of 2013 compared to a foreign exchange gain recognised
in the first six months of 2014.


Well positioned for the future

Haikui Seafood's financial situation remains very strong: Equity has
increased to 161.8 million Euros as at June 30, 2014 (December 31, 2013:
155.4 million Euros) while the equity ratio has slightly improved to 97.6
per cent (December 31, 2013: 97.4 per cent). Furthermore, Haikui Seafood
maintains a healthy cash position of 51.2 million Euros at the end of the
reporting period (December 31, 2013: 49.8 million Euros).


Outlook for the full year 2014 maintained

Not unexpectedly, the market conditions thus far in 2014 have proven to be
challenging for many Chinese seafood processors. Keen competition for raw
materials and labour has driven up production costs while the quest to
preserve and/or gain greater market share amidst a weak, fragile and
uncertain global economy has curtailed efforts to adjust selling prices
upwards. However, the management of Haikui Seafood does not anticipate the
market conditions to further deteriorate for the remaining half of 2014.

Taking the aforesaid factors into consideration, the 9-month revenue in
2014 is expected to be broadly comparable with the same period in 2013 but
with margins anticipated to be slightly lower than H1 2014 and 9M 2013.
Despite uncertainties associated with the development of selling and raw
material prices, the management of Haikui Seafood expects a strong fourth
quarter compared to 2013 and is maintaining its full year 2014 target of
delivering a revenue growth of at least 5 to 10 per cent measured in RMB
terms with an EBIT margin in the range of 11 and 13 per cent.

With regard to the investments, Haikui Seafood recently completed the
detailed planning of its new factory in Dongshan. The construction will
start in the third quarter 2014. Completion would take about 1.5 years with
contributions from the new facility foreseen for 2016.

The full half-year report 2014 of Haikui Seafood AG is available on the
company's website under:
http://www.haikui-seafood.com/investor-relations/publications/reports/


About Haikui Seafood AG

Haikui Seafood processes fish and seafood for the Chinese and international
markets. Its products range includes frozen or canned fish and seafood,
produced from a large variety of species of raw fish and seafood, including
prawn, crab, various fish species and shellfish as well as cephalopods.
Clients of Haikui Seafood are distributors in China and overseas, located