Zhongpin Reports Higher Revenues and Lower Net Income for the First Quarter 2013

 Zhongpin Reports Higher Revenues and Lower Net Income for the First Quarter
                                     2013

PR Newswire

BEIJING and CHANGGE, China, May 9, 2013

BEIJING and CHANGGE, China, May 9, 2013 /PRNewswire/ -- Zhongpin Inc.
("Zhongpin" or the "Company," Nasdaq: HOGS), a leading meat and food
processing company in the People's Republic of China, today reported higher
sales revenues and lower net income for the first quarter ended March 31, 2013
compared with the first quarter 2012.

First quarter 2013 highlights

  oSales revenues increased 2% to $382.4 million in the first quarter 2013
    from $374.1 million in the first quarter 2012 primarily due to higher
    sales volume of pork products sold at lower average selling prices.
  oNet income decreased 13% to $10.6 million in the first quarter 2013 from
    $12.2 million in the first quarter 2012 primarily due to higher operating
    expenses in support of higher sales, more employees to support expansion,
    higher promotional activities, and higher interest expense, partly offset
    by higher gross profit. The higher expenses were mainly due to the higher
    volume of business and intense competitive pressure in the pork market due
    to the ongoing industry consolidation.
  oBasic earnings per share (based on net income attributable to Zhongpin
    shareholders) decreased 12% to $0.29 in the first quarter 2013 from $0.33
    in the first quarter 2012. Weighted average basic shares outstanding
    decreased 1% to 37,209,344 shares in the first quarter 2013 from
    37,498,563 shares in the first quarter 2012.
  oDiluted earnings per share (based on net income attributable to Zhongpin
    shareholders) decreased 15% to $0.28 in the first quarter 2013 from $0.33
    in the first quarter 2012. Weighted average diluted shares outstanding
    decreased 1% to 37,278,630 shares in the first quarter 2013 from
    37,503,019 shares in the first quarter 2012.
  oAs of March 31, 2012, Zhongpin had 40,376,182 shares of common stock
    issued, of which 37,209,344 were outstanding and 3,166,838 were held as
    treasury stock.

Mr. Xianfu Zhu, Chairman and Chief Executive Officer of Zhongpin, said, "Our
results for the first quarter of 2013 clearly illustrate the intense
competitive pressure in the meat industry in China.

"While the demand for all our pork products, measured by our tonnage sold, was
up 10.6% in the first quarter 2013 from last year's first quarter, the average
price per ton for those products dropped 7.5%. Sequentially, the first quarter
2013 average price for all our pork products was only 1.0% higher than in the
fourth quarter 2012.

"Both comparisons are substantially different from the normal seasonal
pattern, when the first quarter prices often peak for the year due to the high
demand for pork during the Chinese New Year. Those prices reflect strong
competition to gain market share that is pressuring prices and financial
performance.

"Our gross profit margin increased 0.6 percentage points to 10.1% in the first
quarter from 9.5% in the first quarter 2012 primarily due to higher gross
profit margins on our prepared pork products and from an increase in the
spread between pork prices and hog prices, due to lower hog prices.

"Our operating expenses continued to increase to support higher sales. We
added more employees to support expansion and had higher promotional
activities and higher interest expense, all mainly due to the higher volume of
business and expansion, plus the intense competitive pressure in the pork
industry.

"For the year 2013, we expect that the demand for pork in China should remain
strong and that Zhongpin's revenues from pork and pork products are likely to
increase modestly based on higher tonnage sold at lower average prices
compared with 2012. We anticipate that our net profit margin in 2013 will
decrease due to increased competition in the industry, the expected increase
in labor cost and overheads, and the expected increase in quality assurance
and control costs in response to increased importance on food safety placed by
the government and customers."

Capacity and market expansions update

Zhongpin is investing approximately $58.5 million to build a new production,
research and development, and training complex in Changge, Henan province,
excluding the cost of land use rights that it has already obtained. When
completed, this new facility is expected to have an annual production capacity
of about 100,000 metric tons for prepared pork products. Adjacent to this new
production facility, Zhongpin plans to develop a center for research and
development, training, and quality assurance and control. Construction for the
first phase with a production capacity of approximately 50,000 metric tons for
prepared pork products started in the second quarter of 2011 and was completed
in the second quarter of 2012. Trial production started in July 2012, and the
plant has been in regular production since the end of the third quarter of
2012.

Zhongpin established a joint venture company in June 2011, of which the
Company owns 65%, with Henan Xinda Animal Husbandry Company Limited. The joint
venture company is financed by capital contributions and bank loans. All
capital contributions to the joint venture company have been made. The joint
venture company is expected to provide 20,000 sire boars annually. Upon the
completion of the building of infrastructures for sire boar breeding in the
third quarter of 2012, the joint venture company leased the facility to a
third party for an annual rental in the amount of RMB 5.0 million.

Zhongpin is investing approximately $18.0 million in a cold-chain logistics
distribution center in Anyang, Henan province. This distribution center will
have a temperature-adjustable warehouse with a floor area of approximately
27,000 square meters, processing capacity, a distribution center, and a
quality control center. The distribution center will be used for third-party
cold-chain logistics service. Zhongpin expects to put this distribution center
into operation in the second quarter of 2013.

Zhongpin is investing approximately $87.5 million in a chilled and frozen food
processing and distribution center in Kunshan, Jiangsu province, which is near
Shanghai. The center will be built in three phases. The first phase will
include a processing center, cold-chain logistics center, and business
complex. Zhongpin invested about $35.0 million on the first phase that was put
into operation in February 2013.

Zhongpin will be investing approximately $47.6 million to build a cold-chain
logistics distribution center in Tangshan, Hebei province. This distribution
center will have a 27,000 square meter temperature-adjustable warehouse,
processing capacity, distribution center, and quality control center. This
distribution center will be used for third-party cold-chain logistics service
and is expected to be in operation in the fourth quarter of 2013.

As of March 31, 2013, Zhongpin had an annual capacity of 683,760 metric tons
for chilled and frozen pork, 176,000 tons for prepared pork products, 20,000
tons for pork oil, and 30,000 tons for vegetables and fruits, for a combined
total of 909,760 metric tons. In addition, its annual capacity for sausage
casings was 100 million meters, and its annual capacity for the raw material
to make heparin sodium was 300 billion units.

Sales revenues in the first quarter 2013

Total sales revenues increased $8.3 million or 2% to $382.4 million in the
first quarter 2013 from $374.1 million in the first quarter 2012 primarily due
to higher sales volume for pork and pork products sold at lower average
selling prices.

The higher revenues resulted mainly from continued increases in the number of
retail outlets, geographic expansion of its distribution network and
processing facilities, and higher sales to chain restaurants, food service
providers, and wholesalers and distributors in China, which were partially
offset by lower average pork prices resulting from market fluctuations and
industry competition. The following table shows tonnage, sales revenues, and
average selling price per metric ton by product division for the first
quarters of 2013 and 2012.



                        Sales by Product Division
                        (unaudited)
                        Firstquarterended           Firstquarterended
                                                      March31,2012
                        March31,2013
                                             Average                       Average
                        Metric   Sales       price    Metric   Sales       price
                        tons     revenues    per      tons     revenues    per
                                 (millions)  metric            (millions)  metric
                                             ton                           ton
PorkandPorkProducts
Chilledpork            92,349   $   243.1   $ 2,632  87,146   $   248.8   $ 2,855
Frozenpork             25,282       58.6    $ 2,318  25,523       67.0    $ 2,625
Preparedporkproducts  30,657       78.4    $ 2,557  21,426       55.7    $ 2,600
VegetablesandFruits   2,498        2.3     $ 921    2,906        2.6     $ 895
Total                   150,786  $   382.4   $ 2,536  137,001  $   374.1   $ 2,731

Chilled pork revenues decreased on higher tonnage at lower average prices per
metric ton. Chilled pork revenues decreased 2% in the first quarter 2013 from
the first quarter 2012. Chilled pork tonnage increased 6% and the average
price per metric ton decreased 8% in the first quarter 2013 from the first
quarter 2012. The lower revenues from chilled pork were mainly due to lower
average selling prices for chilled pork as a result of fluctuations in market
prices of chilled pork or chilled pork-related products, partly offset by the
higher tonnage sold.

Frozen pork revenues decreased on lower tonnage at lower average prices.
Frozen pork revenues decreased 13% in the first quarter 2013 from the first
quarter 2012. Frozen pork tonnage decreased 1% and the average price per
metric ton decreased 12% in the first quarter 2013 from the first quarter
2012. The lower tonnage in the first quarter 2013 was primarily due to
Zhongpin's strategic adjustment of its product mix towards selling less frozen
pork, which has a lower profit margin. The average price per metric ton for
frozen pork decreased due to fluctuations in the market prices of frozen pork
or frozen pork-related products.

Prepared pork revenues increased on higher tonnage at lower average prices.
Revenues from prepared pork products increased 41% in the first quarter 2013
from the first quarter 2012. Prepared pork tonnage increased 43% and the
average price per metric ton decreased 2% in the first quarter 2013 from the
first quarter 2012. Prepared pork products are becoming more important to our
business since customers are increasingly demanding them for their flavor and
convenience and are willing to pay higher average prices for these products.
We plan to gradually increase sales from prepared pork products by increasing
our brand recognition and expanding our capacity for these products.

Pork products totaled 99.4% of total sales revenues in the first quarter 2013
and 99.3% in the first quarter 2012.

Geographic coverage and distribution channels

The sales of pork and vegetable products are closely related to the particular
regional markets in which our distribution channels are located. Therefore,
the increase in metric tons sold in the first quarter 2013 was partly
attributable to our efforts to expand our geographic coverage and broaden our
distribution channels since 2011.

The following table shows sales revenues by distribution channel. In the first
quarter 2013, sales to wholesalers and distributors accounted for 41% of sales
revenues, restaurants and food services were 27%, retail channels were 30%,
and export and import were 2%.



                                  Sales Revenues by Distribution Channel
                                  (unaudited)
U.S.$inmillionsexcept%    First quarter ended      Net     Percent
                               March 31
                               2013           2012      change   change
Wholesalersanddistributors  $  157.2       $  153.7  $ 3.5    2%
Restaurantsandfoodservices     104.6          96.1     8.5    9 %
Retailchannels                  115.3          117.0    (1.7)  (1)%
Exportandimport                 5.3            7.3      (2.0)  (27)%
Total                          $  382.4       $  374.1  $ 8.3    2 %

The increase in sales revenues from different distribution channels was mainly
due to the following factors: (a) we have built our brand image and brand
recognition through general advertising, display promotions, and sales
campaigns; (b) we have increased the number of stores and other channels
through which we sell our products; and (c) we believe consumers are placing
more importance on food safety considerations and are willing to pay higher
prices for safe food products.

As of March 31, 2013, Zhongpin's customers included 158 international and
domestic fast food companies in China, 167 processing factories, and 1,392
school cafeterias, factory canteens, hotels, army bases, hospitals, and
government departments. As of March 31, 2013, Zhongpin also sold directly to
consumers in 3,502 retail outlets, including supermarkets, in China.

The following table shows the retail channels and number of stores and
counters that generated sales volume in the first quarters of 2013 and 2012.



                       Numbers of Retail Stores and Counters
                       (Generating Sales Volume)
                       (unaudited)
                       As of March 31,      Net       Percent

Retail channels        2013       2012      change    change
Showcase stores        152        161       (9)       (6)%
Branded stores        1,497      1,329     168       13%
Supermarket counters  1,853      1,948     (95)      (5)%
Total retail           3,502      3,438     64        2%

Geographic expansion and broader channel coverage together have been important
factors in our long-term success, including in the first quarter 2013. The
table below shows the number of cities, subdivided by the size, in which we
distribute our products through all of our distribution channels at the end of
the first quarters of 2013 and 2012.



                             Number of Cities by Tier
                             for All Distribution Channels
                             (unaudited)
                             As of March 31,  Net     Percent
                                              change
                             2013      2012           change
First-tier cities (largest)  29        29     -       0%
Second-tier cities          137       134    3       2%
Third-tier cities           439       435    4       1%
Total cities                 605       598    7       1%

Cost of sales and gross profit margin

Cost of sales primarily includes the costs of raw materials, labor costs, and
overhead. Of the total cost of sales, the cost of raw materials typically
accounts for about 95.5% to 95.8%, overhead typically accounts for 2.7% to
2.8%, and labor costs typically account for 1.5% to 1.7%, with slight
variations from period to period. All of our meat products are derived from
the same raw materials, which are live hogs. Vegetable and fruit products are
purchased from farmers located close to Zhongpin's processing facility in
Changge in Henan province. As a result, the purchasing costs of live hogs and
vegetables and fruits represent substantially all of the costs of raw
materials. The increase in our cost of sales was consistent with but
considerably lower than our increase in sales revenues.



                        Cost of Sales by Product Division
                        (unaudited)
                        First quarter ended           First quarter ended
                        March 31, 2013                March 31, 2012
                                             Average                       Average
                        Metric   Cost of     cost     Metric   Cost of     cost
                        tons     sales       per      tons     sales       per
                                 (millions)  metric            (millions)  metric
                                             ton                           ton
PorkandPorkProducts
Chilled pork            92,349   $   221.3   $ 2,396  87,146   $   227.1   $ 2,606
Frozen pork             25,282       54.8    $ 2,168  25,523       62.8    $ 2,461
Preparedporkproducts  30,657       65.8    $ 2,146  21,426       46.5    $ 2,170
VegetablesandFruits   2,498        2.0     $ 801    2,906        2.3     $ 791
Total                   150,786  $   343.9   $ 2,281  137,001  $   338.7   $ 2,472

Gross profit margin (gross profit divided by sales revenues) increased to
10.1% in the first quarter 2013 from 9.5% in the first quarter 2012 primarily
due to (a) a higher percentage of revenues from prepared pork products, which
contribute a higher margin than other products, and (b) an increase in the gap
between pork prices over hog prices, with hogs being the bulk of our cost of
sales.

General, administrative, and selling expenses

General and administrative expenses increased $1.7 million or 18% to $11.1
million in the first quarter 2013 from $9.4 million in the first quarter 2012.
As a percent of revenues, general and administrative expenses increased to
2.9% in the first quarter 2013 from 2.5% in the first quarter 2012. The higher
general and administrative expenses in the first quarter 2013 were primarily
the result of a $0.2 million increase in bad debt provision due to higher
accounts receivable on March 31, 2013, a $0.3 million increase in salary
expenses because the average salary paid to employees increased, and a $0.7
million increase in administrative expenses due mainly to higher expenses
related to the going private transaction.

Selling expenses increased $2.3 million or 34% to $8.7 million in the first
quarter 2013 from $6.4 million in the first quarter 2012. Selling expenses as
a percent of revenues increased to 2.3% in the first quarter 2013 from 1.7% in
the first quarter 2012. The higherselling expenses were primarily the result
of the higher sales of pork and pork products and were primarily due to a $0.3
million increase in salary expenses because of an increase in the average
salary paid to employees, $0.8 million increase in promotion expenses for
higher promotional activities to compete more effectively in the industry, and
a $0.6 million increase in super market management fees.

Interest expense, net

Interest expense, net of interest income, increased $0.7 million or 9% to $8.3
million in the first quarter 2013 from $7.6 million in the first quarter 2012.
The increase in interest expense, net of interest income, was primarily due to
higher average outstanding loan balances in the first quarter 2013 compared
with the first quarter 2012.

Other income and government subsidies

Other income and government subsidies decreased $0.3 million or 20% to $1.2
million in the first quarter 2013 from $1.5 million in the first quarter 2012
primarily due to a $0.2 million decrease in other income and a $0.1 million
decrease in government subsidies.

Provision for income taxes

The enterprise income tax rate in China on income generated from the sale of
prepared products is 25% and there is no income tax on income generated from
the sale of raw products, including raw meat products and raw vegetable and
fruit products. The provision for income taxes decreased $0.4 million in the
first quarter 2013 from the first quarter 2012 due to higher sales of prepared
pork products at lower gross profit margins.

Net income

As a result of the foregoing, net income decreased $1.6 million or 13% to
$10.6 million in the first quarter 2013 from $12.2 million in the first
quarter 2012. The net profit margin (net income divided by sales revenues)
declined to 2.8% in the first quarter 2013 from 3.3% in the first quarter
2012.

Earnings per share

The earnings per share numbers below are based on net income attributable to
Zhongpin Inc. shareholders.

Basic earnings per share decreased 12% to $0.29 in the first quarter 2013 from
$0.33 in the first quarter 2012. Weighted average basic shares outstanding
decreased 1% to 37,209,344 shares in the first quarter 2013 from 37,498,563
shares in the first quarter 2012.

Diluted earnings per share decreased 15% to $0.28 in the first quarter 2013
from $0.33 in the first quarter 2012. Weighted average diluted shares
outstanding decreased 1% to 37,278,630 shares in the first quarter 2013 from
37,503,019 shares in the first quarter 2012.

As of March 31, 2013, Zhongpin had 40,376,182 shares of common stock issued,
of which 37,209,344 were outstanding and 3,166,838 were held as treasury
stock.

Liquidity and capital resources

During the first quarter 2013, Zhongpin's cash and cash equivalents increased
by $117.9 million. Cash and cash equivalents (excluding restricted cash)
totaled $294.3 million as of March 31, 2013 compared with $176.4 million as of
December 31, 2012. As of March 31, 2013, working capital (current assets minus
current liabilities) was $31.6 million.

Net cash used in operating activities in the first quarter 2013 was $16.6
million, primarily from net income that provided $10.6 million, depreciation
and amortization that provided $6.5 million, a provision for allowance for bad
debts that provided $1.9 million, accounts receivable and accounts payable
that used a net total of $35.7 million, inventories that provided $3.5
million, deposits from customers that used $2.6 million, and other items that
used $0.8 million, net.

Net cash used in investing activities in the first quarter 2013 was $7.7
million for construction in progress, additions to land use rights, and
additions to property and equipment.

Net cash provided by financing activities in the first quarter 2013 was $141.4
million, primarily from the proceeds from loans, notes, and bonds, net of
repayments, that provided $107.5 million, proceeds from a capital lease
obligation that provided $29.5 million, and an increase in restricted cash
that provided $4.4 million.

As a result, including the effect from foreign currency exchange rate changes
on cash, Zhongpin increased its cash and cash equivalents in the first quarter
2013 by $117.9 million. Cash and cash equivalents on March 31, 2013 totaled
$294.3 million compared with $176.4 million as of December 31, 2012.

Zhongpin believes its existing cash and cash equivalents, together with its
ability to secure bank borrowings, will be sufficient to finance its
investment in new facilities, with budgeted capital expenditures of about
$103.5 million over the next 12 months, and to satisfy its working capital
needs. It intends to satisfy its short-term debt obligations that mature over
the next 12 months through additional short-term bank loans, in most cases by
rolling over the maturing loans into new short-term loans with the same
lenders as the Company has done in the past.

Conference call and webcast

Zhongpin will host its first quarter 2013 earnings conference call and live
webcast at 8:00 a.m. Eastern Daylight Time (New York) on Friday, May 10, 2013,
which is also 8:00 p.m. in China and Hong Kong on the same day.

The dial-in details for the live conference call are:

1 866 978 9970          United States toll free
1 800 033 457           Australia toll free
1 855 790 8866          Canada toll free
800 803 6103            China mainland toll free land line
400 681 6405            China mainland (small access fee) mobile
400 658 8165            China mainland (small access fee) mobile
8025 0180               Denmark toll free
0805 631 899            France toll free
3027 5500               Hong Kong local
180 940 6949            Israel toll free
005 3112 2600           Japan toll free
8002 8922               Luxembourg toll free
0800 022 7874           Netherlands toll free
800 120 6122            Singapore local
800 600 667             Spain toll free
0800 279 7785           United Kingdom toll free
1 866 978 9970          United States toll free
+852 3027 5500          International dial-in toll call
326 957# Live call -- participant access code

The live webcast and archive of the conference call will be available on the
Investor Relations section of Zhongpin's website at http://www.zpfood.com.

A telephone playback of the call will be available after the conclusion of the
conference call through 8:00 a.m. Eastern Daylight Time, June 8, 2013.

The dial-in details for the telephone playback are:

1 866 753 0743          United States toll free
1 800 792 965           Australia toll free
1 866 518 1652          Canada toll free
800 876 5016            China mainland toll free land line
8088 6774               Denmark toll free
0800 901 585            France toll free
3027 5520               Hong Kong local
0053 1121 925           Japan toll free
800 852 3586            Singapore toll free
0808 234 7126           United Kingdom toll free
1 866 753 0743          United States toll free
+852 3027 5520          International toll call
145 136# Playback -- conference reference

About Zhongpin

Zhongpin Inc. is a leading meat and food processing company that specializes
in pork and pork products, vegetables, and fruits in China. Its distribution
network in China covers 20 provinces plus Beijing, Shanghai, Tianjin, and
Chongqing and includes 3,502 retail outlets as of March 31, 2013. Zhongpin's
export markets include Europe, Hong Kong, and other countries in Asia.

For more information about Zhongpin, please visit Zhongpin's website at
http://www.zpfood.com.

Safe harbor statement

Certain statements in this news release may be forward-looking statements made
under the safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. Zhongpin has based its forward-looking statements largely on its
current expectations and projections about future events and trends that it
believes may affect its business strategy, results of operations, financial
condition, and financing needs.

These projections involve risks and uncertainties that could cause actual
results to differ materially from those in the forward-looking statements,
which may include but are not limited to such factors as downturns in the
Chinese economy, unanticipated changes in product demand, interruptions in the
supply of live pigs and or raw pork, the effects of weather on hog feed
production, poor performance of the retail distribution network, delivery
delays, freezer facility malfunctions, Zhongpin's ability to build and
commence new production facilities according to intended timelines, the
ability to prepare Zhongpin for growth, the ability to predict Zhongpin's
future financial performance and financing ability, changes in regulations,
the impacts of the proposed going private transaction, and other information
detailed in Zhongpin's filings with the United States Securities and Exchange
Commission. These filings are available fromwww.sec.govor from Zhongpin's
website atwww.zpfood.com.

You are urged to consider these factors carefully in evaluating Zhongpin's
forward-looking statements and are cautioned not to place undue reliance on
those forward-looking statements, which are qualified in their entirety by
this cautionary statement. All information provided in this news release is as
of the date of this release. Zhongpin does not undertake any obligation to
update any forward-looking statement as a result of new information, future
events, or otherwise, except as required by law.

For more information, please contact:

Zhongpin Inc.

Mr. Sterling Song (English and Chinese)
Director of Investor Relations
Telephone +86 10 8455 4188 extension 106 in Beijing
ir@zhongpin.com

Mr. Warren (Feng) Wang (English and Chinese)
Chief Financial Officer
Telephone +86 10 8455 4388 in Beijing
warren.wang@zhongpin.com

Christensen

Mr. Victor Kuo (English and Chinese)
Telephone +86 10 5826 4939 in Beijing
vkuo@christensenir.com

Mr. Tom Myers (English)
Mobile +86 139 1141 3520 in Beijing
tmyers@christensenir.com

www.zpfood.com

Financial statements follow.



ZHONGPIN INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(In U.S.dollars) (Unaudited)
                                                                 Three Months Ended March 31,
                                                                 2013             2012
Revenues
Sales revenues                                                   $ 382,358,018    $  374,127,384
Cost of sales                                                      (343,913,400)     (338,651,649)
Gross profit                                                      38,444,618        35,475,735
Operating expenses
General and administrative expenses                                (11,117,768)      (9,416,975)
Selling expenses                                                   (8,650,157)       (6,437,120)
Research and development expenses                                  (132,331)         (86,628)
Total operating expenses                                           (19,900,256)      (15,940,723)
Income from operations                                             18,544,362        19,535,012
Other income (expense)
Interest expenses, net                                             (8,289,066)       (7,625,481)
Other income, net                                                  400,325           563,605
Government subsidies                                              776,718           915,348
Total other expenses                                               (7,112,023)       (6,146,528)
Net income before taxes                                            11,432,339        13,388,484
Provision for income taxes                                         (811,687)         (1,193,329)
Net income after taxes                                            10,620,652        12,195,155
Net (income) loss attributable to non-controlling interests        (10,938)          2,160
Net income attributable to Zhongpin Inc. shareholders              10,609,714        12,197,315
Foreign currency translation adjustment                           1,555,861         582,654
Foreign currency translation adjustment attributable to           (2,337)           (863)
non-controlling interests
Foreign currency translation adjustment attributable to           1,553,524         581,791
Zhongpin Inc. shareholders
Comprehensive income                                              12,176,513        12,777,809
Comprehensive (income) loss attributable to non-                   (13,275)          1,297
controlling interests
Comprehensive income attributable to Zhongpin Inc.              $ 12,163,238     $  12,779,106
shareholders
Basic earnings per common share                                  $ 0.29           $  0.33
Diluted earnings per common share                                $ 0.28           $  0.33
Basic weighted average shares outstanding                          37,209,344        37,498,563
Diluted weighted average shares outstanding                        37,278,630        37,503,019
The accompanying notes are an integral part of these condensed
consolidated financial statements.
ZHONGPIN INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In U.S.dollars)
                                                                 March31,2013   December31,2012
ASSETS                                                           (Unaudited)
Current assets
Cash and cash equivalents                                        $ 294,315,174    $  176,441,332
Restricted cash                                                    105,866,898       109,954,161
Bank notes receivable                                              102,110,143       72,369,700
Accountsreceivable,netofallowancefordoubtfulaccountsof    120,800,332       85,167,801
$6,666,258 and $4,775,526
Other receivables, net of allowance for doubtful accounts of      977,803           865,060
$509,084 and $493,484
Purchase deposits                                                  7,034,952         6,798,356
Inventories                                                        34,600,019        37,979,226
Prepaid expenses                                                  389,955           449,127
Allowance receivables                                              958,698           956,166
VAT recoverable                                                    33,410,038        32,719,543
Deferred tax assets                                                802,297           800,179
Other current assets                                               699,311           73,413
Total current assets                                               701,965,620       524,574,064
Long-term investment                                               478,553           477,289
Property, plant and equipment, net                                 514,193,986       470,447,775
Deposits for purchase of land use rights                           15,389,482        17,285,461
Construction in progress                                           46,193,135        86,509,865
Land use rights                                                   118,412,570       116,785,769
Other non-current assets                                           4,452,434         2,554,680
Total assets                                                     $ 1,401,085,780  $  1,218,634,903
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term loans                                                $ 246,785,205    $  228,632,849
Bank notes payable                                                 209,955,495       219,333,386
Long-term loans - current portion                                  45,303,004        52,183,597
Short-term financial bonds                                         95,710,571        -
Capital lease obligation - current portion                         7,298,023         -
Accounts payable                                                   13,498,479        11,918,351
Other payables                                                     23,663,592        24,053,321
Accrued liabilities                                                19,335,514        18,353,887
Deposits from customers                                            7,343,501         9,935,877
Tax payable                                                        1,396,404         1,778,724
Deferred subsidy - current portion                                 84,943            84,852
Total current liabilities                                          670,374,731       566,274,844
Long-term liabilities
Deferred tax liabilities                                           745,839           743,869
Long-term loans                                                   143,374,475       101,792,652
Capital lease obligation                                           24,605,501        -
Deferred subsidy - long-term portion                               2,371,185         2,386,002
Total liabilities                                                  841,471,731       671,197,367
Equity
Common stock: par value $0.001; 100,000,000 authorized;
40,376,182and40,376,182sharesissuedasofMarch31,2013      40,376            40,376
andDecember31,2012;and37,209,344and37,209,344shares
outstanding as of March 31, 2013 and December 31, 2012
Additional paid-in capital                                         240,063,993       240,063,993
Retained earnings                                                  288,878,462       278,268,748
Treasury stock, at cost: 3,166,838 and 3,166,838 shares as of     (26,225,646)      (26,225,646)
March 31, 2013 and December 31, 2012
Accumulated other comprehensive income                             55,967,484        54,413,960
Total Zhongpin Inc. Shareholders' equity                           558,724,669       546,561,431
Non-controlling interests                                          889,380           876,105
Total shareholders' equity                                         559,614,049       547,437,536
Total liabilities and shareholders' equity                       $ 1,401,085,780  $  1,218,634,903
The accompanying notes are an integral part of these condensed
consolidated financial statements.
ZHONGPIN INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In U.S.dollars) (Unaudited)
                                                                 Three Months Ended March 31,
                                                                 2013             2012
Cash flows from operating activities:
Net income                                                       $ 10,620,652     $  12,195,155
Adjustments to reconcile net income to net cash used in
operations:
Depreciation                                                       5,899,289         5,537,984
Amortization of land use rights                                    644,802           516,966
Provision for allowance for bad debts                              1,889,563         1,657,949
Other income                                                       (88,790)          (129,699)
Deferred subsidy                                                   (21,236)          -
Stock-based compensation expense                                  -                 417,749
Changes in operating assets and liabilities:
Accounts receivable                                               (37,228,084)      (31,521,161)
Other receivables                                                  (124,907)         (950,981)
Purchase deposits                                                  (218,259)         1,489,444
Prepaid expenses                                                  60,153            75,128
Inventories                                                        3,474,455         (13,251,435)
Allowance receivables                                              -                 2,160,068
VAT recoverable                                                    (602,931)         (5,225,549)
Other current assets                                               (2,023)           (118,029)
Deferred charges                                                  -                 1,855
Accounts payable                                                   1,546,201         28,643,061
Other payables                                                     (318,966)         (2,035,430)
Accrued liabilities                                                933,980           388,216
Taxes payable                                                      (400,248)         373,669
Deposits from customers                                            (2,614,682)       (3,541,776)
Deposits from customers - long-term portion                        -                 (338,991)
Net cash used in operating activities                              (16,551,031)      (3,655,807)
Cash flows from investing activities:
Deposits for purchase of land use rights                           -                 (10,555,624)
Construction in progress                                           (5,413,842)       (11,461,585)
Additions to property and equipment                                (2,267,416)       (2,585,772)
Additions to land use rights                                       (21,559)          -
Proceeds on sale of fixed assets                                   -                 5,905
Net cash used in investing activities                              (7,702,817)       (24,597,076)
Cash flows from financing activities:
Proceeds from (repayment of) bank notes, net                       (39,447,085)      9,806,307
Proceeds from short-term bank loans                                60,524,010        88,785,573
Repayment of short-term bank loans                                 (43,003,902)      (49,538,008)
Proceeds from long-term loans                                      54,790,156        7,926,069
Repayment of long-term loans                                       (20,549,090)      -
Proceeds from short-term financial bonds, net of issuance costs    95,181,970        -
Proceeds from capital lease obligation, net of issuance costs      29,529,346        -
Repayment of capital lease obligation                              -                 (1,498,250)
Repurchases of common stock                                        -                 (2,812,322)
Increase in restricted cash                                        4,371,725         -
Net cash provided by financing activities                          141,397,130       52,669,369
Effects of rate changes on cash                                    730,560           226,450
Increase in cash and cash equivalents                              117,873,842       24,642,936
Cash and cash equivalents, beginning of period                     176,441,332       135,845,095
Cash and cash equivalents, end of period                         $ 294,315,174    $  160,488,031
Supplemental disclosures of cash flow information:
Cash paid for interest                                           $ 9,596,014      $  8,122,027
Cash paid for income taxes                                       $ 1,199,986      $  819,660
The accompanying notes are an integral part of these condensed
consolidated financial statements.



SOURCE Zhongpin Inc.

Website: http://www.zpfood.com
 
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