7 May 2015 09:00
For immediate release 7 May 2015
Asian Citrus Holdings Limited
("Asian Citrus" together with its subsidiaries, the "Group")
Market Update
Asian Citrus provides the following update on the financial and operational impact of the presence of Huanglongbing (the "HLB Disease") identified at the Group's Xinfeng Plantation, as previously announced on 15 April 2015.
Based on the current information available to the Board from the comprehensive investigation, as announced on 15 April 2015, the Board confirms that the rate of infection of HLB Disease is currently anticipated to be approximately 18% of the total orange trees in Xinfeng Plantation.
In order to prevent the spread of the HLB Disease and protect the unaffected orange trees, approximately 300,000 orange trees infected with HLB Disease are expected to be removed in May 2015. The estimated removal and additional pesticides costs amounting to approximately RMB12 million will be incurred in the fourth quarter for the financial year ending 30 June 2015. The Group's insurance policy does not cover damage from the presence of any diseases and as such there will be no reimbursement for the losses incurred from the HLB Disease.
The Board estimates the 2015 winter harvest from Xinfeng Plantation will see a significant reduction compared to the 2014 winter harvest, which will have an ongoing adverse effect on the results of the Group from the financial year ending 30 June 2016.
The Board wishes to highlight that the HLB Disease itself, despite current industry know how, is fatal once the trees are infected. The content contained in this announcement is based on the latest information available to the Board and it should be read in conjunction with the Market Update as previously announced on 15 April 2015.
For further enquiries please contact:
Asian Citrus +852 2559 0323
MarkNg, Executive Director and Chief Financial Officer
Cantor Fitzgerald Europe (NOMAD and Broker) +44 (0) 20 7894 7000 Rick Thompson/David Foreman (Corporate Finance)
Richard Redmayne (CorporateBroking)
Weber Shandwick Financial +44 (0) 20 7067 0700 Nick Oborne, Stephanie Badjonat, Tom Jenkins