Harvest review

Lets review the past

ASXFM  |  1 December 2015 | ASX RELEASE   report Dec 2019

Harvest Update – Record Harvest Anticipated
Leading Chinese citrus producer Dongfang Modern Agriculture Holding Group (ASX: DFM) is pleased to report that the company’s current citrus harvest is nearing completion with record tonnages expected to exceed prospectus forecasts.

Tangerine and Camellia crop and price estimates are as follows;  Tangerines harvest expected to be 142,000 tonnes, up 35% on 2014 (and exceeding prospectus projections by 10%), primarily due to the addition of two extra plantations. Tangerine sales account for approximately 61% of the IPO forecast revenue.  Camellia harvest expected to be 23,100 tonnes, down 4.5% on 2014 and 1.7% down on prospectus forecasts. Camellia product sales account for approximately 13% of IPO forecast revenue.  Tangerine prices are expected to increase 4% on 2014 and 1% above IPO forecast prices. Camellia prices are expected to be 1.7% below 2014 and 3.9% below IPO forecast.

Orange and pomelo harvest results and expected prices (accounting for 26% of IPO forecast revenue) are anticipated soon.

Executive Chairman Hongwei Chai commented: “We are pleased with how the current harvest season is progressing, and look forward to strong sales as a result.

"We anticipate our biggest harvest ever, with output set to increase to approximately 230,000 tonnes this year on the back of additional and maturing plantations. This will also contribute to higher productivity, better yields and ultimately, increased value for shareholders.”

DFM controls 19 plantations covering some 9000 hectares in China's premier fruit growing region, the Jianxi Province.  Since formation in 2009, the company has grown to become the second largest harvester of citrus fruits in China.

Full year financial results will be released in February 2016.

So far this year we have heard

Primed for record harvest result –report ASX August 2016
Leading Chinese agricultural company Dongfang Modern Agriculture Holding Group Limited ("Dongfang") (ASXFM) today announced its financial results for the six months ended 30th June 2016 (1H2016).
Key highlights
 Upcoming harvest output expected to exceed previous year's record 240,000 tonnes
 Unit prices for primary fruit products expected to improve from previous year
 Gross profit margins anticipated to be maintained
 Administrative expenses expected to be lower in the 2nd Half
 Expect to maintain existing dividend policy
 Plantation acreage nearing 10,000 hectares within China's premier citrus region

Dongfang controls plantations spanning in excess of 9,800 hectares, all located in China's premier citrus fruit district, the Ganzhou City district of Jiangxi Province.

Dongfang's CEO Mr Charles So commented on today's results: "Since listing in October 2015, we continue to grow the Company, having bedded down the acquisition of four key plantations, which will all contribute to the upcoming harvest commencing in September 2016.

"We have spent over RMB$51 million (~AUD10 million) to date in preparing for our second harvest as a listed entity, and expect to surpass last year's record 240,000 tonnes result. With the new plantations in hand, we expect to increase earnings per share for the year ahead.
"Early indications are that prices for our products will improve from last season, and gross profit margins are anticipated to be maintained.

"We also anticipate lower administrative expenses in the 2nd half of this year."
For 1H2016, Dongfang posted a net loss of $3.1 million, $2.2 million greater than the previous corresponding period. This is primarily as a result of dividend withholding tax payment of $2.027 million associated with the 31 December 2015-year end final dividend. my comment is all produce is Oct-Dec
So what and when should we hear some further updates?
Some commentators here have cast doubt on the performance of directors both past and present and that they may be extending the truth somewhat and this has cast doubt on accuracy of past figures.
Directors have a responsibility to keep the ASX and shareholders informed of any event that would effect the anticipated profits (need for continuous disclosure). I am sure all directors are aware of this.
I consider that if profit is plus or minus 15% they ought to disclose this.
This site thru its members have brought directors into doubt and the current share price reflects this now trading at a all time low.
Directors are not nieve and may well wait to delay report on current season until full audited figures are available. This should remove fears of authenticity and Chinese doubts.
IMHO the best we can get in the next month is a pacifying statement with repeat of size of harvest is better that last year and prices have risen.