HQ Sustainable Reports Strong Q2 Results

For the quarter ended June 30, 2009, sales increased by 10 per cent to $16 million, compared to $14.5 million for the second quarter of 2008. The Aquaculture Product segment accounted for $10.5 million in sales, up 9 per cent from $9.6 million reported for the same period last year.

Gross profit for the second quarter of 2009 increased by 37 per cent to $6.8 million, compared to gross profit of $5 million for the same period of 2008.

"The second quarter once again saw strong top line growth across our business segments, and though our net income was adversely affected by new accounting rules, we believe that this revenue growth demonstrates the significant leverage that our business model continues to hold. Highlights for the second quarter also included very favorable increases in our gross profit margins. Fueling this leverage and our continued vertical integration was the recent completion of our feed mill.

This addition renders our feed the most efficient feed available in China to Tilapia farmers, reducing feed cost for farmers while guaranteeing for consumers quality at a very high level," said Norbert Sporns, CEO of HQ Sustainable Maritime Industries, Inc.

Mr. Sporns concluded, "Another highlight of the quarter was the successful analyst day in early June. Representatives from both the sell side and the buy side toured our facilities in Hainan, China and observed, in person, the lengths that we go to in order to ensure the highest quality global production standards.

Participants were also able to assess the depth of our management team, and to view presentations on our operations. We are very proud of the operational infrastructure we have built and of the quality of the team we have put in place. We look forward to building upon this momentum and to the continued execution of our growth objectives."