REG - Asian Citrus Hldgs - Winter Orange Crop <Origin Href="QuoteRef">0073.HK</Origin>

Asian Citrus HoldingsAnnouncement

10/11/2014 09:39

RNS Number : 4363W
Asian Citrus Holdings Ltd
07 November 2014
For immediate release
7 November 2014
Asian Citrus Holdings Limited
("Asian Citrus" or "theCompany")
Winter Orange Crop
Asian Citrus announces that the Group (the Company together with its subsidiaries) has concluded negotiations on the pricing with its customers for the forthcoming winter orange crop.
Update for average selling price
Based on current information, it is anticipated that the average selling price of the Group's winter orange crop will be approximately 2.6% higher at Xinfeng Plantation compared to the prior year. However, the anticipated average selling price at Hepu Plantation will be approximately 40.2% lower than the prior year; this reduction reflects both extensive typhoon damage, especially from Typhoon Rammasun in July 2014, and the poor appearance of oranges infected by citrus canker.
Update for winter orange crop production yield
Based on the recently signed supplier agreements, the supply of winter oranges from Xinfeng Plantation will be 113,600 tonnes in the second half of 2014. This represents a decrease of approximately 7.8% in comparison to the actual production output of 123,228 tonnes in the same period last year. The reduction reflects the effect of cryogenic freezing rain and frosts in Xinfeng in early 2014 on the fruit blossom.
As previously announced in August 2014, Hepu Plantation suffered extensive damage from the impact of Typhoon Rammasun, the strongest in the region for over 40 years. There was widespread crop loss and as a consequence the contracts for the supply of winter oranges reflect this. Based on the recently signed supplier agreements, the Group will only supply a total of 7,100 tonnes winter oranges from Hepu Plantation in the second half of 2014, representing a decrease of approximately 71.3% in comparison to the actual production output of 24,699 tonnes in the same period last year.
As a result of the reduction in the production volumes at both plantations and the anticipated lower average selling price of Hepu Plantation winter orange crop, the board of directors of the Company 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 2015 compared to last year's actual figures.
For further enquiries please contact:
Asian Citrus
+852 2559 0323
Mark Ng, Chief Financial Officer and Company Secretary
Cantor Fitzgerald Europe (NOMAD and Broker)
+44 (0) 20 7894 7000
Rick Thompson / David Foreman (Corporate Finance)
Richard Redmayne (Corporate Broking)
Weber Shandwick Financial
+44 (0) 20 7067 0700
Nick Oborne, Stephanie Badjonat, Tom Jenkins

This information is provided by RNS
The company news service from the London Stock Exchange
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