Pingtan Marine Enterprise Acknowledges Recent Notification by The Ministry of Agriculture Restricting New Fishing Licenses
Company Expects New Regulation will Serve as a Barrier to Potential New Competitors in the Region
FUZHOU, China, Sept. 26, 2013 /PRNewswire/ -- Pingtan Marine Enterprise Ltd. (Nasdaq: PME), ("Pingtan," or the "Company") an integrated marine services company in the People's Republic of China (PRC), today announced that The Ministry of Agriculture of the People's Republic of China ("MOA") recently issued a notification that it will suspend accepting shipbuilding applications for tuna harvesting vessels, squid harvesting vessels, Pacific saury harvesting vessels, trawlers operating on international waters, seine on international waters, and trawlers operating on the Arafura Sea, Indonesia.
Pingtan previously announced the addition of acquired and newly built vessels in June and September, which are intended to operate mainly on the Arafura Sea, Indonesia. The applications for these vessels preceded the MOA's recent notification, and the Company is currently one of the largest fishing companies operating on the Arafura Sea with total of 106 fishing vessels.
The Company is including a link to the notification by the MOA (in Mandarin): http://www.gov.cn/gzdt/2013-09/03/content_2480463.htm.
Mr. Xinrong Zhou, Pingtan's Chairman and CEO, stated, "We acknowledge the recent notification from the MOA, which we believe is a positive indicator for long-term stability and balance in China's fishing industry. We have closely followed recent discussions surrounding the issue of over-fishing, most notably in November 2012 when the MOA issued a notification to limit new licenses. At that time, our management acted quickly to accelerate our new build efforts. We believe that this has helped to ensure our fishing productivity in international waters, while also serving as a major barrier to entry for competitors in our industry. In addition to strengthening our competitive advantage through asset expansion, we are also positioning the Company to begin directly selling our products to end markets. We feel that delivering our seafood straight from the sea to the consumer will provide a fresher, more attractive product, while simultaneously expanding Pingtan's margins through the elimination of a distributor. We are pleased with the direction of our Company's operations, and feel that today's announcement strengthens Pingtan's competitive position in our markets."
Pingtan is a marine enterprises group, engaging in dredging services and ocean fishing through its wholly-owned subsidiaries, China Dredging Group and Merchant Supreme, and their respective PRC operating subsidiaries, Fujian Xinggang Port Service Co., Ltd., or Fujian Service, Pingtan Xingyi Port Service Co., Ltd., or Pingtan Xingyi and Fujian Provincial Pingtan County Ocean Fishing Group Co., Ltd., or Pingtan Fishing.
Pingtan Fishing primarily engages in ocean fishing with many of its self-owned vessels operating within the Indian Exclusive Economic Zone and the Arafura Sea of Indonesia. Pingtan Fishing is a growing fishing company and provider of high quality seafood in the PRC.
Business Risks and Forward-Looking Statements
This press release may contain forward-looking statements that are subject to the safe harbors created under the Securities Act of 1933 and the Securities Exchange Act of 1934. Readers are cautioned that actual results could differ materially from those expressed in any forward-looking statements. In addition, please refer to the risk factors contained in Pingtan's SEC filings available at www.sec.gov, including Pingtan's most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Definitive Proxy Statement and Registration Statement on Form S-3. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date on which they are made. Pingtan undertakes no obligation to update or revise any forward-looking statements for any reason.
Chief Financial Officer
Pingtan Marine Enterprise Ltd.
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The Equity Group Inc.
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SOURCE Pingtan Marine Enterprise Ltd.