Renmin Tianli Group, Inc. (NASDAQ:ABAC)

WUHAN, China, Jan. 2, 2019 /PRNewswire/ -- Renmin Tianli Group, Inc. (ABAC) ("Renmin Tianli" or the "Company"), a producer of breeder hogs, market hogs and black hogs, as well as specialty processed black hog pork products sold through retail outlets and the internet, with headquarters in Wuhan City, Hubei Province, China, today announced that it has entered into a purchase agreement with Hubei Science and Technology Industrial Park (the "Seller") to acquire a portfolio of industrial and residential properties (the "Properties") for a total consideration of RMB432 million, including 1) cash consideration of RMB411 million (approximately $59.7 million); and 2) 3,000,000 shares of Renmin Tianli common stock, par value of $0.004 per share, to be issued to certain shareholders of the Seller. The Company's Board of Directors has approved the transaction.

Located at No. 1 Qilin Road, Xiangcheng District, Xiangyang City, Hubei Province, the Properties include two industrial buildings (building #4 and #7) with aggregate floor area of approximately 50,000 square meters and a residential building with usage area of approximately 19,000 square meters.

Upon completion of the transaction, the Company expects rental streams from the leasing the Properties to complement its existing hog farming business.

WUHAN CITY, China, Nov. 29, 2018 /PRNewswire/ -- Renmin Tianli Group, Inc. (ABAC) ("Renmin Tianli" or the "Company"), a producer of breeder hogs, market hogs and black hogs, as well as specialty processed black hog pork products sold through retail outlets and the internet, with headquarters in Wuhan City, Hubei Province, China, today received a notification letter from the Nasdaq Stock Market ("Nasdaq") stating that, based on the November 28, 2018, filing of the Company's Form 10-Q for the period ended September 30, 2018, the Company regained compliance with Nasdaq Listing Rule 5250(c)(1).

First Quarter 2018 Financial Results

• Revenues for the first quarter of 2018 increased by $0.55 million, or 8.2%, to $7.23 million from $6.68 million for the same period of last year.
• Net income was $0.20 million, or $0.025 per basic and diluted share, for the first quarter of 2018, compared to $0.03 million, or $0.004 per basic and diluted share, for the same period of last year.

Mr. Luchang Zhou, Chief Executive Officer of Renmin Tianli, commented, "With total number of hogs sold increasing by 23.7% year-over-year, our hog farming business performed well during the first quarter that more than offset the decrease in blended average selling price ("ASP") and the moderate decrease in our retail business, leading to an 8.2% increase in total revenues and improvement in both margins and profitability. Looking ahead, as we continue to focus on improving our inventory turnover rate and managing our expenses, we anticipate a stabilization in our hog farming business despite uncertainty in hog pricing and feed costs."

WUHAN CITY, China, May 2, 2018 /PRNewswire/ -- Renmin Tianli Group, Inc. (ABAC) ("Renmin Tianli" or the "Company"), a producer of breeder hogs, market hogs and black hogs, as well as specialty processed black hog pork products sold through retail outlets and the internet, with headquarters in Wuhan City, Hubei Province, China, today announced that, on April 30, 2018, it completed the acquisition of a 10% equity interest in Youyang County Jinzhu Forestry Development Co. Ltd. ("Jinzhu Forestry"), a bamboo cultivation and processing facility located in Youyang County, Chongqing, for a total consideration of RMB 18 million (approximately $2.8 million) and 2,000,000 shares of Renmin Tianli's common stock. The acquisition was accomplished by acquiring all of the issued and outstanding capital stock of Chongqing Kangduo Commercial Trade Co., Ltd., a private corporation which holds 10% of the outstanding equity of Jinzhu Forestry.

Jinzhu Bamboo commenced operations in April 2016. It currently operates a bamboo plantation of approximately 3,853.5 mu (approximately 635 acres) on which it will construct a bamboo processing facility. Bamboo is a fast-growing plant which can be used as a substitute for wood in a variety of uses, including flooring, furniture and as a construction material. The cultivation of bamboo is an activity favored by the Chinese Government, particularly as the country attempts to expand its forests. Although Jinzhu Forestry is anticipated to begin generating operating profits within the next two years, for 2016 and 2017 it operated slightly below break-even.

Fourth Quarter 2017 Financial Results

• Revenues for the fourth quarter of 2017 increased by $0.12 million, or 1.7%, to $7.31 million from $7.19 million for the same period of last year.
• Net income increased by $0.26 million, or 71.7%, to $0.63 million for the fourth quarter of 2017, compared to $0.36 million for the same period of last year. Our net income from continuing operations, including both hog farming and retail, was $0.63 million for the fourth quarter of 2017, compared to $0.37 million for the same period of last year. Net income for the fourth quarter of 2016 was adversely impacted by the net loss from our discontinued operation, Hang-ao, which was $6,215 for the fourth quarter of 2016. Hang-ao was sold on December 23, 2016.

Mr. Luchang Zhou, Chief Executive Officer of Renmin Tianli, commented, "We saw a moderate increase of 1.7% in total revenues for the fourth quarter of 2017 as a result of 31.7% growth in the number of hogs sold from our hog farming business, which was partially offset by a decrease in the blended average selling price per hog as well as a decrease in retail sales volume. Gross and operating margins and net income all improved significantly in the fourth quarter of 2017, as we continued to improve our inventory turnover rate and reduce our employee payroll. Looking ahead, we expect the hog farming industry to continue to face significant uncertainty in market demand and high volatilities in both hog pricing and feed costs."

WUHAN, China, Dec. 27, 2016 /PRNewswire/ -- Aoxin Tianli Group, Inc. (ABAC) ("Aoxin Tianli" or the "Company"), a leading producer of breeder hogs, market hogs and black hogs, as well as specialty processed black hog pork products sold through retail outlets and the internet, with headquarters in Wuhan City, Hubei Province, China, today announced that it has executed an equity transfer agreement (the "Equity Transfer Agreement") to sell the Company's 88% equity interest in Hubei Hang-ao Servo-valve Manufacturing Technology Co., Ltd. ("Hang-ao") to Zhong Bi Cheng Holdings Co., Ltd. ("Zhong Bi Cheng"), a Hangzhou-based PRC corporation.

Pursuant to the Equity Transfer Agreement entered in by and between the Company and Zhong Bi Cheng on December 23, 2016, the Company agreed to transfer 88% of the equity interest in Hang-ao for a total consideration of RMB 26 million (approximately US$ 3.7 million), of which RMB 5 million has been paid to the Company and the remaining RMB 21 million due by December 30, 2016. The Company's Board of Directors voted in favor of the transaction on December 23, 2016.

Third Quarter 2016 Financial Results

• Revenues for the third quarter of 2016 decreased by $1.34 million, or 14.5%, to $7.84 million from $9.18 million for the same period of last year.
• Earnings (loss) per share was $(0.35) vs. last years gain of $0.10.

"As we previously announced, our hog farms in Wuhan City and some of the independently operated black hog farms in Enshi Prefecture suffered various levels of damage as torrential rains in July caused devastating flooding in Southern China with Wuhan being one of the hardest hit areas. Our third quarter results, with significant decreases in both revenues and margins, resulting in a net loss from continuing operations, reflected the impact of floods on our inventories and biological assets of $0.67 million, and related non-operating expenses of $1.70 million," said Mr. Wocheng Liu, Chairman and Co-Chief Executive Officer of Aoxin Tianli. "Despite the challenges caused by the floods, the momentum for our retail business remained strong, with revenues increasing by 65.8% year-over-year. We also started to sell our specialty black hog pork products through third-party online stores on Taobao.com, Meituan.com and the popular mobile app platform Wechat, as well as on leading group-buying web portal Ixiaop.com, setting us up for further growth in coming quarters."

WUHAN, China, Sept. 28, 2016 /PRNewswire/ -- Aoxin Tianli Group, Inc. (NASDAQ: ABAC) ("Aoxin Tianli" or the "Company"), a leading producer of breeder hogs, market hogs and black hogs, as well as specialty processed black hog pork products sold through retail outlets and the internet, with headquarters in Wuhan City, Hubei Province, China, today announced that it received notice from The Nasdaq Stock Market LLC ("NASDAQ") that it has regained compliance with NASDAQ Marketplace Rule 5550(a)(2) (the "Rule"), which requires that the closing bid price per share of a listed company be at least $1.00 per share.

As previously announced, on September 21, 2015, NASDAQ notified the Company that the bid price of its common shares had closed at less than $1.00 per share over the previous 30 consecutive business days and, as a result, the Company was not in compliance with the Rule. On March 22, 2016, the Company received a letter from NASDAQ granting the Company an additional 180-day period, or until September 19, 2016, in which to regain compliance with the Rule.

On September 26, 2016, NASDAQ notified the Company that the closing bid price of the common shares had been $1.00 per share or greater for more than 10 consecutive business days, from September 9, 2016 to September 22, 2016. Accordingly, the Company has regained compliance with the Rule.

WUHAN, China, Aug. 25, 2016 /PRNewswire/ -- Aoxin Tianli Group, Inc. (ABAC) ("Aoxin Tianli" or the "Company"), a leading producer of breeder hogs, market hogs and black hogs, as well as specialty processed black hog pork products sold through retail outlets and the internet, with headquarters in Wuhan City, Hubei Province, China, today announced that it had signed a sales agreement (the "Agreement") with Wuhan Fengyu Agricultural Development Co., Ltd. ("Fengyu") to sell the Company's Tianli-Xiduhei™ black hog pork products through Fengyu's online stores on Taobao.com, Meituan.com and the mobile app platform Wechat. The Agreement has a one year term, effective August 24, 2016, and can be automatically extended for successive one-year periods.

Sales of the Company's black hog pork cuts, sausages, and cured hams through Fengyu's web portals are expected to commence by Mid-September this year. 

"This follows our announcement last week of a sales agreement with the online group buying site www.ixiaop.com and further expands online and mobile distribution channels for our black hog pork products. With the effective combination of online and offline sales, we believe that our retail business is poised for strong growth in the near term," said Mr. Wocheng Liu, Chairman and Co-Chief Executive Officer of Aoxin Tianli.

WUHAN, China, Aug. 22, 2016 /PRNewswire/ -- Aoxin Tianli Group, Inc. (ABAC) ("Aoxin Tianli" or the "Company"), a leading producer of breeder hogs, market hogs and black hogs, as well as specialty processed black hog pork products sold through retail outlets and the internet, with headquarters in Wuhan City, Hubei Province, China, today announced that it had signed a sales agreement (the "Agreement") with Shangzhi Xiaop (Dalian) E-Commerce Co., Ltd. ("Xiaop") to sell the Company's Tianli-Xiduhei™ black hog pork products through Xiaop's group-buying web portal www.ixiaop.com (the "Ixiaop.com"). The Agreement has a one year term, effective as of August 19, 2016, and can be automatically extended for successive one-year periods.

Mr. Wocheng Liu, Chairman and Co-Chief Executive Officer of Aoxin Tianli commented, "With the increasing popularity of online shopping, especially group buying in China, we believe that Ixiaop.com could potentially open up tremendous opportunities for our retail business. As an emerging online group buying site in China, Ixiaop.com is the sister site of www.popular.com.tw, a top-3 ranked online group buying site in Taiwan. Our branded specialty black hog pork products are now available for sale at http://www.ixiaop.com/."

WUHAN CITY, China, July 19, 2016 /PRNewswire/ -- Aoxin Tianli Group, Inc. (ABAC) ("Aoxin Tianli" or the "Company"), a leading producer of breeder hogs, market hogs and black hogs, as well as specialty processed black hog pork products sold through retail outlets and the internet, today announced that its wholly-owned subsidiary, Wuhan Fengze Agricultural Science and Technology Development Co., Ltd. ("Fengze"), has entered into a Letter of Intent (the "LOI") to acquire a majority stake in Hainan Chengmai Zaohuaxiang Hog Industry Co., Ltd. ("Zaohuaxiang"), a high-end specialty black hog farm operator based in Hainan Province with annual production capacity of 30,000 hogs.

Pursuant to the LOI entered into on July 18, 2016 among Fengze and the three shareholders --Sheng Yang, Jun Yang, and Haicheng Pan, who collectively own 100% of the equity interest in Zaohuaxiang, Fengze will acquire a 51~60% equity interest in Zaohuaxiang for a combination of cash and stock (the "Transaction"). The Transaction is subject to due diligence investigations by the relevant parties, the negotiation and execution of definitive agreements, the approval of the Company's Board of Directors, and the satisfaction of other customary closing conditions.

Mr. Wocheng Liu, Chairman and Co-Chief Executive Officer of Aoxin Tianli, commented, "Zaohuaxiang is a well-known consumer brand with its specialty black hog pork products currently sold through both retail outlets and the internet, including China's leading e-commerce platform, Taobao.com. We are excited about the opportunity as we believe it represents a unique opportunity for us to expand our geographical outreach beyond the Hubei market while augmenting our specialty back hog and pork products portfolio. Upon completion of the Transaction, we intend to expand Zaohuaxiang's annual production capacity to 50,000 hogs."

About Hainan Chengmai Zaohuaxiang Hog Industry Co., Ltd.

Established in August 2010, Hainan Chengmai Zaohuaxiang Hog Industry Co., Ltd. ("Zaohuaxing") is in the business of breeding, raising and selling Zaohuaxiang-branded specialty black hogs with its 57.7 acres of hog farm located in Jinjiang Town, Chengmai County, Hainan Province. It also has ancillary businesses of producing spirulina,

WUHAN CITY, China, June 16, 2016 /PRNewswire/ -- Aoxin Tianli Group, Inc. (NASDAQ: ABAC) ("Aoxin Tianli" or the "Company"), a leading producer of breeder hogs, market hogs and black hogs, as well as specialty processed black hog pork products sold through retail outlets and the internet, today announced that the Board of Directors of the Company has appointed Mr. "Tommy"Chun Choi Law as the Company's Chief Financial Officer, replacing Mr. Houliang Yu, who resigned as Chief Financial Officer of the Company due to personal reasons on June 13, 2016.

Mr. Law, 55, is a seasoned CPA licensed in Hong Kong with over 32 year of professional experience in auditing, financial reporting, internal controls and risk management. Mr. Law joined Aoxin Tianli from a public accounting firm he formed in January 2013. Previously, Mr. Law served in various leadership capacities at multiple entities, including most recently, as financial controller, corporate secretary, and chief financial officer of China Infrastructure Investment Limited (0600.HK) which he served from April 2005 to November 2012 and as an independent director of Karce International Holdings Co. Ltd., a manufacturer and distributor of calculators and other consumer electronic products, which he served from April 2010 to September 2012. Mr. Law graduated from the Hong Kong Polytechnic University with a professional Diploma in Accountancy in 1984 and a postgraduate Diploma in Corporate Administration in 2000.

Mr. Wocheng Liu, Chairman and Co-CEO of Aoxin Tianli commented, "We appreciate Houliang's contributions to the Company over the past year and we wish him well in all of his future endeavors." Mr. Liu continued, "We are delighted to welcome Tommy to our senior management team and are confident that his over 30 years of experience and expertise will benefit us tremendously in years to come."

WUHAN CITY, China, Dec. 30, 2015 /PRNewswire/ -- Aoxin Tianli Group, Inc. (NASDAQ: ABAC) ("Aoxin Tianli" or the "Company"), a company focused on hog farming in China, today announced that it has executed an equity transfer agreement (the "Equity Transfer Agreement") to sell the Company's 95% equity interest in Wuhan Optical Valley Orange Technology Co., Ltd. ("OV Orange") to a group of third party investors (collectively, the "Transferees"). Pursuant to the Equity Transfer Agreement entered into by and between the Company and the Transferees on December 29, 2015, the Company agreed to transfer 95% of the equity interests in OV Orange for a total consideration of RMB47.5 million (approximately $7.3 million). To facilitate the transaction, the Company also agreed to waive the earn-out provisions set forth in the Stock Purchase Agreement executed on August 26, 2014 (please refer to the Company's SEC filing at: http://www.sec.gov/Archives/edgar/data/1486299/000119380514001769/e612663_ex10-1.htm) and to release the 403,000 "earn-out" shares of the Company's common stock that are currently held in escrow to Ms. Li-Na Deng at the end of March 2017. The Company's Board of Directors voted in favor of the transaction on December 29, 2015.

Additionally, the Company announced that it and Guangxi Hongzhen Investment Co., Ltd. ("Guangxi Hongzhen") have agreed to terminate the Equity Transfer Agreement, previously entered into by them on November 13, 2015, whereby Guangxi Hongzhen was to purchase the Company's interest in Hubei Hang-ao Servo-valve Manufacturing Technology Co., Ltd.   (please refer to the Company's SEC filing at: http://www.sec.gov/Archives/edgar/data/1486299/000119380515001884/e614246_ex10-1.htm) . The Agreement was terminated at the request of Guangxi Hongzhen as a result of the inability to obtain proper land use permits and deeds for Hang-ao's properties as a result of the failure of the developer of the industrial park in which Hang-ao is located to complete the development of the industrial park and related permitting procedures. As a result, Hang-ao remains an 88% owned subsidiary of the Company.

WUHAN CITY, China, Dec. 3, 2015 /PRNewswire/ -- Aoxin Tianli Group, Inc. (ABAC) ("Aoxin Tianli" or the "Company"), a company focused on hog farming in China, today announced that it has entered into a strategic cooperation framework agreement (the "Framework Agreement") with Beijing Huinongfeng Biological Technology Co., Ltd. ("Huinongfeng"), a Beijing-based production-to-consumer ("P2C") e-commerce company, for the construction of a new pork production facility and a food processing plant and the sale of the Company's pork products through Huinongfeng's online portal www.inongfeng.com .  

The Framework Agreement contemplates that the Company and Huinongfeng will jointly acquire real property and establish a pork production facility and a food processing plant in the Huangpi District of Wuhan City, subject to approval of the relevant authorities. The parties anticipate obtaining the requisite approvals by the end of 2015, and acquiring the real property by the end of the first quarter of 2016, with construction to commence in early May, 2016. The parties expect to commence operations at the new facility in October 2016 at which time they will begin to distribute the Company's Xiduhei-branded black hog meat products direct to consumers via Huinongfeng's online portal and overnight delivery services.

Mrs. Hanying Li, Chairwoman and Chief Executive Officer of Aoxin Tian Group, Inc., commented, "We are excited about the prospects of working with Huinongfeng to jointly build a new pork processing plant and develop a P2C e-commerce platform for the sale of our branded black hog pork products. As we refocus our business on hog farming and related businesses such as pork processing and wholesale/retail distribution, we believe that this new cooperation initiative with Huinongfeng will allow us to extract greater value from our assets once fully launched."

Third Quarter 2015 Financial Results

• Revenues for the third quarter of 2015 decreased by $2.02 million, or 17.6%, to $9.46 million from $11.48 million for the same period of last year.
•  After the deduction of non-controlling interests, net income attributable to common shareholders for the third quarter of 2015 was $0.88 million, or $0.03 per diluted share. This compared to net income attributable to common shareholders of $1.81 million, $0.08 per diluted share, for the same period of last year.

Ms. Hanying Li, Chairwoman and Chief Executive Officer of Aoxin Tianli Group, Inc., commented, "Our revenues and net income for the third quarter decreased significantly primarily driven by weakness in our hog farming and servo businesses. We sold less hogs despite an uptick in hog selling prices in the third quarter, and we saw the continuation of a dramatic slowdown in our servo business that started in the second quarter."

Ms. Li continued, "Additionally, the Chinese stock market turmoil this year has prevented us from carrying out our acquisition and diversification strategy effectively and successfully so far this year and caused us to reassess our growth and diversification strategy. With the recent change of management and the support of our Board of Directors, the Company will in the immediate term focus its efforts on hog farming and related businesses such as meat processing and wholesale distribution of pork products while in the longer term continue to pursue selective acquisition and/or strategic investment opportunities. Our decision of selling the 88% equity interest in Hang-ao, which has been underperforming this year reflects the latest changes in our immediate focus."

WUHAN CITY, China, Sept. 25, 2015 /PRNewswire/ -- Aoxin Tianli Group, Inc. (NASDAQ: ABAC) ("Aoxin Tianli" or the "Company"), a diversified company with businesses in hog farming and manufacture and marketing of electro-hydraulic servo-valves and optical fiber hardware and software solutions, today announced that on September 21, 2015 the Company received a letter from the NASDAQ Stock Market stating that for the previous 30 consecutive business days, the closing bid price of the Company's stock was below the minimum bid price of $1.00 per share for continued listing on the NASDAQ Capital Market pursuant to NASDAQ Marketplace Rule 5550(a)(2) (the "Minimum Bid Price Rule"). The NASDAQ letter has no immediate effect on the listing of the Company's shares.

In accordance with NASDAQ Marketplace Rule 5810(c)(3)(A), the Company has been provided with a period of 180 calendar days, or until March 21, 2016, to regain compliance with the Minimum Bid Price Rule.  If at any time during this 180-day period the closing bid price of the Company's Common Shares is at least $1.00 for a minimum of ten consecutive days, NASDAQ will provide written confirmation of compliance and the matter will be closed.

The Company intends to evaluate available options to resolve the deficiency and regain compliance with the Minimum Bid Price Rule.

Item 3.01.   Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.
 

On September 21, 2015, Aoxin Tianli Group, Inc. (the “Company”) received a letter from The NASDAQ Stock Market notifying the Company that the minimum bid price of the Company’s common shares was below $1.00 per share for 30 consecutive business days and that the Company was therefore not in compliance with Marketplace Rule 5450(a)(1). The notification letter has no immediate effect at this time on the listing of the Company’s common shares on The NASDAQ Capital Market. The Company’s common shares will continue to trade on The NASDAQ Capital Market under the symbol ABAC.
 
The notification letter states that the Company will be afforded 180 calendar days, or until March 21, 2016, to regain compliance with the minimum closing bid requirement. In accordance with Marketplace Rule 5810(c)(3)(A), the Company can regain compliance if the closing bid price of the Company’s common shares meets or exceeds $1.00 per share for at least 10 consecutive business days, and that if the Company’s common shares regain compliance with the minimum closing bid requirement for continued listing, the NASDAQ staff will provide the Company with written notification that it has achieved compliance with the minimum closing bid requirement for continued listing and the matter will be closed. The notification letter states that if the Company chooses to implement a reverse stock split to achieve compliance, the Company must complete the split no later than ten business days prior to March 21, 2016.

If the Company does not regain compliance by March 21, 2016, the Company may be eligible for additional time. To qualify, the Company will be required to meet the continued listing requirement for market value of publicly held shares and all other initial listing standards for The Nasdaq Capital Market, with the exception of the bid price requirement, and will need to provide written notice of its intention to cure the deficiency during the second compliance period, by effecting a reverse stock split, if necessary. If the Company meets these requirements, the Staff of NASDAQ will inform the Company that it has been granted an additional 180 calendar days. However, if it appears to the Staff of NASDAQ that the Company will not be able to cure the deficiency, or if the Company is otherwise not eligible, the Staff of NASDAQ will provide notice to the Company advising that its securities will be subject to delisting.

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On June 1, 2015, Houliang Yu, age 50, was appointed as our Chief Financial Officer. Jun Wang, who has served as our Chief Financial Officer since July 10, 2013, will become our Finance Manager.
 
From July 2011 until his appointment as our CFO, Mr. Yu was Chief Financial Officer of Aoxin Holdings Co., Ltd., a leading industrial park developer and operator headquartered in Beijing, of which our Chairman, Ping Wang, is Chairman.
 
From May 2003 to June, 2011, Mr. Yu was Audit Manager of Anhua Accounting Firm Co., Ltd of Hubei Province. From August 1998 to April 2003, Mr. Yu was CFO of Wuhan Mingdi Industry Group Corporation. From January 1996 to July 1998, Mr. Yu was Financial Manager of Zhangjiajie Water Resources and Hydropower Development Corporation of Hunan Province. From July 1984 to December 1995, he was Chief Accountant of Wuhan Municipal Building Materials Bureau.
 
Mr. Yu graduated from Jianghan University with the specialty of Accounting. He was an accountant and CFP (China Certified Financial Planner).

• Revenues increased by 16.8% year-over-year to $11.35 million with the newly acquired servo and security and protection businesses contributing $1.76 million, or 15.5% of total revenues
• Net loss for common shareholders was $0.24 million, or net loss of $0.01 per share, compared to net income for common shareholders of $0.43 million, or $0.03 per diluted share. The decrease was mainly related to non-cash stock-based compensation expense of $0.60 million and an increase of $0.30 million in operating expenses for our retail segment, partially offset by net income of $0.32 million contributed by our newly operating servo segment

Mr. Ping Wang, Chairman and Chief Executive Officer of Aoxin Tianli Group, Inc., commented, "Despite continued weakness in demand for market hogs, our black hog program remained strong and generated $3.80 million in revenues through black hog farming and retail sales of specialty black hog products, or one third of total revenues, in the first quarter this year. Our newly acquired servo and security and protection businesses also contributed $1.76 million in revenues, leading to a 16.8% growth in our overall revenues. Overall gross margin also improved by 4.8% to 19.8% for the first quarter of 2015 from 15.0% for the same period of last year, thanks to the new segments which contributed 15.5% of overall revenues but 31.4% of overall gross profit."

Mr. Wang continued: "While we expect the new segments, both servo and security & protection, to continue to drive growth in revenues and expansion in gross margin in the future, we are committed to further carry out our New Strategic Development Plan which we launched last July. Our in-house M&A team has been working diligently on several potential investment or acquisition targets in recent months and expects to pull the trigger when the right opportunities arise after thorough due diligence review."

Fourth Quarter 2014 Financial Results:

• Revenues grew 40% to a record level of $14.51 million for the fourth quarter of 2014
• Net income attributable to common shareholders for the fourth quarter of 2014 was $1.95 million, or $0.07 per diluted share. This compared to net loss attributable to common shareholders of $1.22 million, or net loss of $0.09 per diluted share, for the fourth quarter of 2013.

Mr. Ping Wang, Chairman and Chief Executive Officer of Aoxin Tianli Group, Inc., commented, "We are very pleased to end 2014 on a high note. During the fourth quarter of 2014, we grew our revenues by 40% compared to the fourth quarter of 2013, to a record level of $14.51 million, thanks to the solid contributions from the newly acquired Hang-ao and OV Orange subsidiaries which generated $3.31 million in revenues, or 23% of total revenues for the quarter. Both gross margin and net income also reached their highest levels in more than three years during the fourth quarter, capping a tremendous year for Aoxin Tianli."

Mr. Wang continued: "2014 was truly a transformational year for Aoxin Tianli as we: 1) orchestrated a smooth leadership transition; 2) initiated a New Strategic Plan to transform the Company from a single revenue stream � hog farming to a well � diversified company through targeted investments and acquisitions in selected high-growth industries; 3) completed 5 rounds of private placements that raised $33.8 million; and 4) added two new lines of businesses with the acquisition of Hang-ao and OV Orange."

"We remain steadfast in carrying out our New Strategic Plan and we firmly believe that our much strengthened balance sheet and diversified business platform position us well for further growth in 2015 and beyond," concluded Mr. Wang.

WUHAN, China, Dec. 2, 2014 /PRNewswire/ -- Aoxin Tianli Group, Inc. (NASDAQ: ABAC) ("Aoxin Tianli" or the "Company"), a diversified company with businesses in hog farming, manufacture and marketing of electro-hydraulic servo-valves, and optical fiber hardware and software solutions, today announced that the Company has completed a $11.04 million private placement of its common stock (the "Offering") to four PRC citizens (the "Investors").

Pursuant to a Subscription Agreement executed on November 25, 2014, the Company issued and sold 4.6 million shares of its common stock (the "Shares") to the Investors for aggregate consideration of $11.04 million, or $2.40 per share. The offering price represents an approximately 9% premium over the closing price of $2.20 on November 24, 2014. Upon completion of the Offering, the Company had 32,363,000 common shares outstanding, of which the Investors own approximately 14.2%. As a condition of the Offering, the Investors agreed not to sell the Shares for 9 months and thereafter at not less than $2.40 per share.  The Company intends to use the proceeds from this Offering and cash on hand to implement its diversification strategy and acquire larger-sized businesses and/or assets than those it has acquired to date.

Item 1.01 Entry into a Material Definitive Agreement.

On November 28, 2014, we entered into a subscription agreement for the issuance and sale of a total of 4,600,000 of our common shares (the “Shares”), representing approximately 16.57 % of our then outstanding 27,763,000 common shares, for a total purchase price of $11,040,000, or $2.40 per share to Kai Xiao (1,500,000 shares), Wei Huang (1,500,000 shares), Yingjian Li (800,000 shares) and Ruinao Yang (800,000 shares). The subscription agreement is filed as Exhibit 10.1 to this report (the “Subscription Agreement”).
 
As a condition of the sale, each of the purchasers agreed not to sell the Shares for nine months and thereafter at not less than $2.40 per share.

Item 3.02 Sale of Unregistered Securities.
 
On November 28, 2014, we sold to a total of 4,600,000 common shares, representing approximately 16.57% of our outstanding common shares immediately prior to the sale, for a total purchase price of $11,040,000, or $2.40 per share, to Kai Xiao (1,500,000 shares), Wei Huang (1,500,000 shares), Yingjian Li (800,000 shares) and Ruinao Yang (800,000 shares) pursuant to the Subscription Agreement. As a condition of the sale, each of the purchasers agreed not to sell the common shares which they purchased for nine months and thereafter at not less than $2.40 per share. We did not pay any brokerage or other commissions to an underwriter, broker-dealer or other person in connection with the sale.

Third Quarter 2014 Financial Results:

• Revenues were $11.48 million, an increase of 32%, from $8.73 million in the same period 2013.
• Non-GAAP Net Income per dilluted share was $0.08 vs $0.03 in prior year.

Mr. Ping Wang, Chairman and Chief Executive Officer of Aoxin Tianli Group, Inc., commented, "Despite continued weakness in the demand for our regular breeder and market hogs as a result of weakening macro conditions in China and the government's continuing efforts to curb corruption and excess spending, continued momentum in our Black Hog Program and solid contributions from our newly acquired subsidiaries, Hang-ao and OV Orange, allowed us to deliver the strongest quarterly results in three years, highlighting that our years of investment in the Enshi Prefecture and the newly adopted diversification strategy are bearing fruit."

Mr. Wang continued, "As we approach the tail end of 2014, we are proud of what we have achieved throughout this truly transformational year. With diversified revenue streams and a much strengthened balance sheet, we look forward to better days ahead of us."

WUHAN CITY, China, Aug. 28, 2014 /PRNewswire/ -- Aoxin Tianli Group, Inc. (ABAC) ("Aoxin Tianli" or the "Company"), a diversified company with businesses in hog farming and electro-hydraulic servo-valves manufacturing and marketing, today announced that the Company has acquired a 95% equity interest in Wuhan Optical Valley Orange Technology Co., Ltd. ("OV Orange"), a leading company focused on delivering next-generation optical fiber hardware and software solutions for the security and protection industry. Hubei Aoxin Science and Technology Co., Ltd. ("Hubei Aoxin"), a wholly owned subsidiary of Aoxin Holdings Co., Ltd. ("Aoxin") and a holder of 3,000,000 of the Company's common shares prior to the Company's acquisition of OV Orange, controls the remaining 5% equity interest in OV Orange.

Pursuant to a Stock Purchase Agreement executed on August 26, 2014, the Company acquired 47,500,000 shares of OV Orange, representing 95% of its outstanding equity, for 2,552,000 shares of the Company, of which: 1,075,000 shares were issued to Hubei Aoxin for a 40% equity interest in OV Orange; 268,000 shares were issued to Mr. Guoqiang Wan for a 10% equity interest in OV Orange; 806,000 shares were issued to Mr. Jin Wu, in respect of shares registered in the name of Ms. Ting Liu (collectively, "Jin Wu"), for a 30% equity interest in OV Orange; 403,000 shares, to be held in escrow pending the achievement of certain earnings targets, were issued in the name of Mr. Hai Liu, Chief Executive Officer of OV Orange, whose shares are registered in the name of Ms. Li-Na Deng (collectively, the "Management Stockholder"), for a 15% equity interest in OV Orange. All or a portion of the shares held in escrow will be released to Mr. Liu  in 2017, subject to OV Orange achieving certain net profit targets, specifically, 90% of RMB 2.6 million, RMB 6.8 million, and RMB 10.5 million for the years ending December 31, 2014, 2015, and 2016, respectively.

The shares issued to Hubei Aoxin, Mr. Guoqiang Wan, and Jin Wu are subject to restrictions which prohibit their sale prior to September 1, 2015. Additionally, if OV Orange achieves the aforementioned net income targets for all three years, the Management Stockholder and Jin Wu shall have the option, exercisable for a period of three months commencing March 16 and terminating June 15, 2017, to exchange all or portions of the shares of the Company they received for up to 7,500,000 and 15,000,000 shares, respectively, of OV Orange. All persons mentioned in this release, including Mr. Guoqiang Wan, Mr. Jin Wu, Ms. Ting Liu, Mr. Hai Liu, and Ms. Li-Na Deng, are PRC citizens. Mr. Ping Wang, the Company's Chairman and Chief Executive Officer, is also the Chairman and a major shareholder of Hubei Aoxin and Aoxin Holdings Co., Ltd.

As a result of the transaction, OV Orange became a 95% owned subsidiary of the Company's WFOE subsidiary, Wuhan Aoxin Tianli Enterprise Investment Management Co., Ltd. (the "WFOE Subsidiary"). The WFOE Subsidiary also holds an 88% equity interest in Hubei Hang-ao Servo-valve Manufacturing Technology Co., Ltd. ("Hang-ao") which the Company acquired last month, and 100% of the equity in Wuhan Fengze Agricultural Science and Technology Development Co., Ltd. which runs the Company's hog farming business.

Ping Wang, Chairman and Chief Executive Officer of Aoxin Tianli, commented, "Today marks another milestone for Aoxin Tianli as we completed our second acquisition of the year. We are thrilled to get OV Orange, an emerging company with its award-wining proprietary optical fiber technologies, at a very attractive price based on our evaluation and calculations. As Aoxin Tianli continues to evolve under the New Strategic Development Plan launched in July aimed at transforming Aoxin Tianli into a higher growth, more diversified company through strategic investments and acquisitions, we firmly believe that we are on the right track for better days ahead."

WUHAN CITY, China, Aug. 21, 2014 /PRNewswire/ -- Aoxin Tianli Group, Inc. (ABAC) ("Aoxin Tianli" or the "Company"), a diversified company with businesses in hog farming and electro-hydraulic servo-valves manufacturing and marketing, today announced that the Company has completed a $7.2 million private placement of its common stock (the "Offering") to Hubei Aoxin Science and Technology Group Co., Ltd ("Hubei Aoxin"). Established in 2009 as a PRC corporation, Hubei Aoxin is a wholly owned subsidiary of Aoxin Holdings Co. Ltd. ("Aoxin"), a diversified holding company whose main business is in industrial park development and operations. Mr. Ping Wang, Aoxin Tianli's Chairman and Chief Executive Officer, is a major shareholder and Chairman of Aoxin.

Pursuant to a Regulation S Subscription Agreement executed on August 18, 2014, the Company issued and sold 3 million shares of its common stock (the "Shares") to Hubei Aoxin for an aggregate consideration of $7.2 million, or $2.40 per share. The offering price represents an approximately 24% premium over the closing price of $1.93 on August 15, 2014. Upon completion of the Offering, the Company had 25,211,000 common shares outstanding, of which Hubei Aoxin owns approximately 11.9%. As a condition of the Offering, Hubei Aoxin agreed not to sell the Shares for 12 months and thereafter at not less than $2.40 per share. The Company intends to use the proceeds from this Offering and cash on hand to pursue accretive M&A opportunities under the company's new strategic development plan which was announced last month.

Item 1.01 Entry into a Material Definitive Agreement.

On August 18, 2014, we entered into a subscription agreement with Hubei Aoxin Science and Technology Group Co., Ltd., a company organized under the laws of the PRC, for the issuance and sale of 3,000,000 of our common shares (the “Shares”) representing approximately 13.51% of our then outstanding 22,211,000 common shares, for a total purchase price of $7,200,000, or $2.40 per share. After giving effect to the sale, Hubei Aoxin Science and Technology Group Co., Ltd., will own approximately 11.90% of our outstanding common shares. The subscription agreement is filed as Exhibit 10.1 to this report (the “Subscription Agreement”).
 
Mr. Wang, our Chairman and CEO, is the Chairman and a principal shareholder of Hubei Aoxin Science and Technology Group Co., Ltd.
 
As a condition of the sale, Hubei Aoxin Science and Technology Group Co., Ltd., agreed not to sell the Shares for 12 months and thereafter at not less than $2.40 per share.

Item 3.02 Sale of Unregistered Securities.
 
On August 18, 2014, we sold to Hubei Aoxin Science and Technology Group Co., Ltd., 3,000,000 common shares, representing approximately 13.51% of our outstanding common shares immediately prior to the sale, for a total purchase price of $7,200,000, or $2.40 per share, pursuant to the Subscription Agreement. After giving effect to the sale, Hubei Aoxin Science and Technology Group Co., Ltd., will own approximately 11.90% of our outstanding common shares. As a condition of the sale, Hubei Aoxin Science and Technology Group Co., Ltd., agreed not to sell the Shares for 12 months and thereafter at not less than $2.40 per share. We did not pay any brokerage or other commissions to an underwriter, broker-dealer or other person in connection with the sale.
 

The Shares were issued in an “off-shore” transaction exempt from the registration requirements of the Securities Act under Rule 903 of Regulation S of the Securities Act. Hubei Aoxin Science and Technology Group Co., Ltd., is a non-U.S. Person, as defined in Rule 902of Regulation S. The certificates evidencing the Shares were endorsed with restrictive legends in accordance with Regulation S.

Item 7.01 Regulation FD Disclosure.
 
On August 21, 2014, we issued a press release reporting the sale of the Shares to Hubei Aoxin Science and Technology Group Co., Ltd. A copy of the press release is attached hereto as Exhibit 99.1.
 
The information in Exhibit 99.1 shall not be deemed as “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), or otherwise subject to the liability of such Section, nor shall it be deemed incorporated by reference in any filing by us under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing, unless expressly incorporated by specific reference in such filing.

• Revenue for the second quarter of 2014 increased $1.23 million, or approximately 18%, to $8.07 million from $6.84 million for the same period of 2013.
• Net income attributable to non-controlling interest, net income attributable to common shareholders for the second quarter of 2014 was $0.56 million, or $0.03 per diluted share. This compared to net loss attributable to common shareholders of $1.00 million, or net loss of $0.09 per diluted share, for the second quarter of 2013. 

Mr. Ping Wang, Chairman and Chief Executive Officer of Aoxin Tianli Group, Inc., commented, "Despite continued weakness in market demand for our regular breeder and market hogs, strong sales of black hogs and black hog specialty pork products continued to drive double-digit top-line growth for us, with revenue growing 18% year-over-year in the second quarter. Our gross margin also improved to 7.7% for the second quarter, from negative 4.0% in the prior year, benefitting from lower feed costs as well as a more favorable product mix."

Mr. Wang continued, "2014 is a transformational year for Aoxin Tianli as the recent changes to our corporate name and ticker symbol highlight our newly adopted strategy to transform the Company from a single revenue stream � hog farming to a well-diversified company through targeted investments and acquisitions in selected high-growth industries such as equipment manufacturing, optoelectronics, new materials & new energy products, electromechanics and healthcare devices. Last month, we successfully acquired an 88% equity interest in Hubei Hang-ao Servo-valve Manufacturing Technology Co., Ltd. ("Hang-ao"), allowing us to tap into the underdeveloped domestic Servo-valve market which is poised to benefit from favorable national industrial policies and increasing domestic brand market penetration."

"Looking forward, with our much improved cash position following our recent private placements, we are excited about the prospects of our business and will actively pursue investment and acquisition targets to further diversify into high growth and profitable segments. We want to thank our shareholders, many of whom have been with us since our IPO in 2010 for their continuing support. We are confident that our new strategy and execution capabilities will allow us to deliver significant long-term returns for our shareholders." Mr. Wang concluded.

WUHAN CITY, China, July 17, 2014 /PRNewswire/ -- Tianli Agritech, Inc. (NASDAQ:OINK) ("Tianli" or the "Company"), a leading producer of breeder hogs, market hogs and black hogs headquartered in Wuhan City, China, today announced a strategic development plan (the "New Strategic Plan") to transform the Company into a higher growth, more profitable business through targeted investments and acquisitions. Building on Tianli's status as a Nasdaq-listed public company with a strong balance sheet and the current management team's deep knowledge and experience in managing a wide array of businesses across different industries, the New Strategic Plan aims to transform Tianli from a single revenue stream - hog farming to a well - diversified company through targeted investments and acquisitions in selected high-growth industries such as equipment manufacturing, optoelectronics, new material & new energy products, electromechanics and healthcare devices.

In connection with the Strategic Development Plan, the Company also announced that it had consummated a stock purchase agreement (the "Stock Purchase Agreement") whereby it acquired an 88% equity interest in Hubei Hang-ao Servo-valve Manufacturing Technology Co., Ltd. ("Hang-ao") for: 1) cash consideration of RMB 42 million (approximately US$6.8 million), paid to Youbin Li and Hongwen Tong who collectively controlled 60% of the equity in Hang-ao; and 2) up to 1,047,000 shares of Tianli common stock (the "Share Consideration"), par value of $0.001 per share, to be issued to certain management shareholders who transferred to Tianli 28% of the equity in Hang-ao. Vesting of the Share Consideration is contingent upon Hang-ao achieving certain agreed upon net profit targets. Specifically, the entire Share Consideration will only vest in the management stockholders if Hang-ao achieves net profits of RMB 4.5 million, RMB 9.0 million, and RMB 15.0 million for the years ending December 31, 2014, 2015, and 2016, respectively. As a result of the completion of the transaction, Hang-ao became an 88% owned subsidiary of Tianli's WFOE subsidiary, Wuhan Aoxin Tianli Enterprise Investment Co., Ltd. (previously known as Wuhan Fengxin Agricultural Science and Technology Development Co., Ltd.)("WFOE"). Wuhan Fengze Agricultural Science and Technology Development Co., Ltd., the Company's wholly-owned operating subsidiary for its hog farming business, will remain under WFOE, in parallel with Hang-ao.

Ping Wang, Chairman and Chief Executive Officer of Tianli, commented, "The New Strategic Plan we are announcing today stems from the new management team's close collaboration with the Board of Directors to reposition Tianli for consistent and profitable growth through targeted strategic investments and acquisitions. Thanks to our much improved cash position following our recent private placements, we are able to jump start this multi-year New Strategic Plan with the acquisition of Hang-ao, an emerging electro-hydraulic servo-valve manufacturer with a strong patent portfolio and an impressive management team. We expect Hang-ao to contribute significantly to us following the transaction. Looking ahead, we are very excited about the prospect of our businesses and plan to aggressively seek M&A targets to drive growth and profitability and enhance shareholder value."

Item 1.01 Entry into a Material Definitive Agreement.

 
On July 15, 2014, Tianli Agritech, Inc. (the “Company”), consummated a stock purchase agreement (the “Stock Purchase Agreement”) whereby it acquired 88% of the outstanding equity of Hubei Hang-ao Servo-valve Manufacturing Technology Co., Ltd. (“Hang-ao”). Pursuant to the Stock Purchase Agreement, Tianli paid RMB 42 million (approximately US$6.8 million) to Youbin Li and Hongwen Tong who collectively transferred to Tianli 60% of the equity in Hang-ao and agreed to issue up to 1,047,000 shares of Tianli common stock (the “Share Consideration”), par value of $0.001 per share, to certain management shareholders who transferred to Tianli 28% of the equity in Hang-ao. Vesting of the Share Consideration is contingent upon Hang-ao achieving certain agreed upon net profit targets as fully set forth in the Stock Purchase Agreement. Specifically, the entire Share Consideration will only vest in the management stockholders if Hang-ao achieves net profits of RMB 4.5 million, RMB 9.0 million and RMB 15.0 million for the years ending December 31, 2014, 2015, and 2016, respectively. As a result of the completion of the transaction, Hang-ao became an 88% owned subsidiary of Tianli’s WFOE subsidiary, Wuhan Aoxin Tianli Enterprise Investment Co., Ltd. (previously known as Wuhan Fengxin Agricultural Science and Technology Development Co., Ltd.)(“WFOE”). Wuhan Fengze Agricultural Science and Technology Development Co., Ltd., the Company’s wholly-owned operating subsidiary for its hog farming business, will remain under WFOE, in parallel with Hang-ao.

WUHAN CITY, China, June 18, 2014 /PRNewswire/ -- Tianli Agritech, Inc. (NASDAQ:OINK) ("Tianli" or the "Company"), a leading producer of breeder hogs, market hogs and black hogs headquartered in Wuhan City, China, today announced that the Company has completed a $3.84 million private placement of its common stock (the "Offering") to Mr. Houliang Yu, a citizen of the PRC.

Pursuant to a Regulation S Subscription Agreement entered into on June 6, 2014, the Company issued and sold 1.6 million shares of its common stock (the "Shares") to Mr. Yu for an aggregate consideration of $3.84 million, or $2.40 per share. The offering price represents an approximately 11.6% premium over the closing price of $2.15 on June 6, 2014. Upon completion of the Offering, the Company had 21,164,000 common shares outstanding, of which Mr. Yu owns approximately 7.56%. The Company intends to use the proceeds from this Offering and cash on hand to pursue accretive M&A opportunities.

Mr. Yu currently resides in Wuhan City, Hubei Province and serves as Chief Financial Officer of Aoxin Holdings Co. Ltd. ("Aoxin"), a diversified holding company whose main business is in industrial park development and operations. Mr. Ping Wang, Tianli's Chairman and Chief Executive Officer, is a major shareholder and Chairman of Aoxin. As a condition of the Offering, Mr. Yu agreed not to sell the Shares for 12 months and thereafter at not less than $2.40 per share.

Item 1.01 Entry into a Material Definitive Agreement.

On June 6, 2014, we entered into a subscription agreement with Mr. Houliang Yu for the issuance and sale of 1,600,000 of our common shares (the “Shares”), representing approximately 8.18% of our then outstanding 19,564,000 common shares, for a total purchase price of $3,840,000, or $2.40 per share. After giving effect to the sale, Mr. Yu will own 1,600,000 common shares, representing approximately 7.56% of our outstanding common shares. The subscription agreement is filed as Exhibit 10.1 to this report (the “Subscription Agreement”).
 
As a condition of the sale, Mr. Wang agreed not to sell the Shares for 12 months and thereafter at not less than $2.40 per share.

Item 3.02 Sale of Unregistered Securities.
 
On June 12, 2014, we sold to Mr. Houliang Yu 1,600,000 common shares, representing approximately 8.18% of our outstanding common shares immediately prior to the sale, for a total purchase price of $3,840,000, or $2.40 per share, pursuant to the Subscription Agreement. After giving effect to the sale, Mr. Yu will own 1,600,000 common shares, representing approximately 7.56% of our outstanding common shares. As a condition of the sale, Mr. Yu agreed not to sell the Shares for 12 months and thereafter at not less than $2.40 per share. We did not pay any brokerage or other commissions to an underwriter, broker-dealer or other person in connection with the sale.

First Quarter 2014 Financial Results:

• Revenue for the first quarter of 2014 increased $2.33 million, or approximately 32%, to $9.72 million from $7.39 million for the same period of 2013.
• Basic & diluted EPS was 0.03 vs last years quarterly loss of $(0.01)

Mr. Ping Wang, Chairman and Chief Executive Officer of Tianli commented, "We are pleased to deliver another solid quarter, achieving 32% top-line growth and $0.03 EPS for the three months ended March 31, 2014. Our black hog program and retail operations are showing strength, positioning us well for future growth. Looking ahead, despite near-term challenges facing the hog industry- slowing economic growth momentum, tightened credit environment, and the government's crackdown on corruption and extravagant spending, we are confident about the long-term growth prospects of the Chinese hog industry and Tianli's market position."

Item 1.01 Entry into a Material Definitive Agreement.

On April 10, 2014, we entered into a subscription agreement with Mr. Ping Wang, our Chairman and CEO, for the issuance and sale of 2,600,000 of our common shares (the “Shares”), representing approximately 15.33% of our then outstanding 16,964,000 common shares, for a total purchase price of $5,720,000, or $2.20 per share. After giving effect to the sale, Mr. Wang will own 5,600,000 common shares, representing approximately 28.6% of our outstanding common shares. The subscription agreement is filed as Exhibit 10.1 to this report (the “Subscription Agreement”).
 
NASDAQ Marketplace Rule 5635(d) requires shareholder approval prior to the issuance of a number of our common shares in a private placement at a price less than the greater of book or market value which equals 20% or more of the outstanding common shares before the issuance, unless as a foreign private issuer organized under the laws of the British Virgin Islands, such issuance does not require shareholder approval. Although the per share closing price of our common shares on April 9, 2014, the last trading day prior to the date of the subscription agreement, was $1.82, the book value per share of our common shares was greater than $2.20. NASDAQ Marketplace Rule 5615(a)(3) permits a foreign private issuer to follow its home country practice in lieu of most of the requirements of the 5600 Series of the NASDAQ Marketplace Rules. In order to claim such an exemption, we must disclose the significant differences between our corporate governance practices and those required to be followed by U.S. domestic issuers under NASDAQ’s corporate governance requirements. We previously determined to follow our home country rule which allowed us to sell more than 20% or more of our shares outstanding prior to the transaction for less than the greater of book or market value of the stock.

The proceeds of the sale will be used as working capital by our variable interest entity, Wuhan Fengze Agricultural Science and Technology Development Co., Ltd. As a condition of the sale, Mr. Wang agreed not to sell the Shares for 18 months and thereafter at not less than $2.20 per share.

Item 3.02 Sale of Unregistered Securities.
 
On April 10, 2014, we sold to Mr. Ping Wang, our Chairman and CEO, 2,600,000 common shares, representing approximately 15.33% of our outstanding common shares immediately prior to the sale, for a total purchase price of $5,720,000, or $2.20 per share, pursuant to the Subscription Agreement. After giving effect to the sale, Mr. Wang will own 5,600,000 common shares, representing approximately 28.6% of our outstanding common shares. The proceeds of the sale will be used by our variable interest entity, Wuhan Fengze Agricultural Science and Technology Development Co, Ltd to provide additional funds for operations, to repay a portion of our bank debt and for general corporate purposes. As a condition of the sale, Mr. Wang agreed not to sell the Shares for 18 months and thereafter at not less than $2.20 per share. We did not pay any brokerage or other commissions to an underwriter, broker-dealer or other person in connection with the sale.

The Shares were issued in an “off-shore” transaction exempt from the registration requirements of the Securities Act under Rule 903 of Regulation S of the Securities Act. Mr. Wang is a non-U.S. Person, as defined in Rule 902of Regulation S. The certificates evidencing the Shares were endorsed with restrictive legends in accordance with Regulation S.

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On April 8, 2014, Tong Zhao was elected a director of our company.

Mr. Zhao, age 39, has served as Executive President of Aoxin Holdings Group, Ltd. a leading industrial park developer and operator headquartered in Beijing, since February 2012. From September 2009 to January 2012, Mr. Zhao was employed as investment director by China Galaxy Securities, a subsidiary of China Construction Bank of China, where he was mainly responsible for the asset management and investment and financing business. From February 1996 to August 2009, he was employed by Morgan Stanley& Co. LLC as Director of Asset Management in New York. Mr. Zhao received a Bachelor‘s degree in International Economics from the State University of New York at Buffalo in July 1993 and an MBA in Finance from the University of Washington in July 1996.

WUHAN CITY, China, April 11, 2014 /PRNewswire/ -- Tianli Agritech, Inc. (NASDAQ:OINK) ("Tianli" or the "Company"), a leading producer of breeder hogs, market hogs and black hogs headquartered in Wuhan City, China, today announced that the Company has completed a $5.72 million private placement of its common stock (the "Offering") to Mr. Ping Wang, the Company's newly appointed Chairman and CEO.

Pursuant to a Subscription Agreement executed on April 10, 2014, the Company issued and sold 2.6 million shares of its common stock (the "Shares") to Mr. Wang for an aggregate consideration of $5.72 million, or $2.20 per share. The offering price represents an approximately 20.9% premium over the closing price of $1.82 on April 9, 2014. The Company intends to use the proceeds of the Offering to provide additional funds for operations, to repay a portion of the Company's bank debt and for general corporate purposes. As a condition of the Offering, Mr. Wang agreed not to sell the Shares for 18 months and thereafter at not less than $2.20 per share.

This placement follows Mr. Wang's recent investment in the Company through a $6 million private placement consummated on March 24, 2014 (see FORM 8-K filed on March 27, 2014) and brings Mr. Wang's total stake in the Company to 5.6 million shares, or 28.6% of its outstanding common shares as of today.

Additionally, on April 8, 2014, Mr. Wang and the Company's Nominating Committee recommended, and the Board of Directors approved, the appointment of Mr. Tong Zhao as a Director of the Board. Mr. Zhao, 39, currently serves as Executive President of Aoxin Holding Co., Ltd. ("Aoxin"), where Mr. Wang also serves as Chairperson. Prior to joining Aoxin in February 2012, Mr. Zhao worked for China Galaxy Securities from September 2009 to January 2012 and Morgan Stanley from February 1996 to August 2009. Mr. Zhao received his MBA degree

WUHAN CITY, China, March 27, 2014 /PRNewswire/ -- Tianli Agritech, Inc. (NASDAQ:OINK) ("Tianli" or the "Company"), a leading producer of breeder hogs, market hogs and black hogs headquartered in Wuhan City, China, today announced that the Company has completed a $6 million private placement of its common stock to Mr. Ping Wang, a citizen of the PRC.

Pursuant to a Subscription Agreement executed on March 24, 2014, the Company issued and sold 3 million shares of its common stock (the "Shares") to Mr. Wang for an aggregate consideration of $6 million, or $2.00 per share. The offering price represents an approximately 13% premium over the closing price of $1.77 on March 21, 2014. The proceeds of the offering will be used as working capital by Tianli's variable interest entity, Wuhan Fengze Agricultural Science and Technology Development Co., Ltd. As a condition of the sale, Mr. Wang agreed not to sell the Shares for 18 months and thereafter at not less than $2.00 per share. In addition, the Company agreed to use its best efforts to cause the election of Mr. Wang as a member of its Board of Director.

Mr. Ping Wang, 51, currently serves as Chairman of Auxin Holdings Co., Ltd., a leading industrial park developer and operator headquartered in Beijing with over 5,000 employees and over RMB 1 billion in assets

Item 1.01 Entry into a Material Definitive Agreement.

On March 24, 2014, we entered into a subscription agreement with Mr. Ping Wang for the issuance and sale of 3,000,000 of our common shares (the “Shares”) representing approximately 21.48% of our then outstanding 13,964,000 common shares, for a total purchase price of $6,000,000, or $2.00 per share. After giving effect to the sale, Mr. Wang will own approximately 17.68% of our outstanding common shares. The subscription agreement is filed as Exhibit 10.1 to this report (the “Subscription Agreement”).
 
Mr. Wang is Chairman of Auxin Holdings Co., Ltd., a leading industrial park developer and operator headquartered in Beijing with over 5,000 employees and over RMB 1 billion in assets.

Item 3.02 Sale of Unregistered Securities.
 
On March 26, 2014, we sold to Mr. Ping Wang 3,000,000 common shares, representing approximately 21.48% of our outstanding common shares immediately prior to the sale, for a total purchase price of $6,000,000, or $2.00 per share, pursuant to the Subscription Agreement. After giving effect to the sale, Mr. Wang will own approximately 17.68% of our outstanding common shares. The proceeds of the sale will be used as working capital by our variable interest entity, Wuhan Fengze Agricultural Science and Technology Development Co, Ltd. As a condition of the sale, Mr. Wang agreed not to sell the Shares for 18 months and thereafter at not less than $2.00 per share. We did not pay any brokerage or other commissions to an underwriter, broker-dealer or other person in connection with the sale.

The Shares were issued in an “off-shore” transaction exempt from the registration requirements of the Securities Act under Rule 903 of Regulation S of the Securities Act. Mr. Wang is a non-U.S. Person, as defined in Rule 902of Regulation S. The certificates evidencing the Shares were endorsed with restrictive legends in accordance with Regulation S.

Fourth Quarter 2013 Financial Results:

• Revenues for the fourth quarter of 2013 increased by $3.54 million, or 51.6%, to $10.39 million from $6.86 million for the same period.
• Diluted earnings per share was (0.09) vs. last years same quarter loss of (0.01).

Mrs. Hanying Li, Chairwoman and CEO of Tianli Agritech, Inc. commented, "The hog industry remained challenged in 2013 as pork demand in China was negatively affected by the outbreak of H7N9 avian flu and the government's crackdown on corruption and extravagant government spending. Meanwhile, domestic pork supply continued to grow as a result of preferential government policies such as tax breaks and subsidies, leading to further reductions in pork prices in 2013," said Mrs. Hanying Li, Tianli's Chairwoman and Chief Executive Officer. "Despite a challenging industry environment, we saw solid growth in our business in 2013 with revenues increasing by 25.7% to $33.35 million and the number of hogs sold increasing by 28.9% to 149,181 hogs as our years of investment in the black hog program in Enshi Prefecture started paying dividends. With black hog sales now generating a significant portion of our total revenues and our retail network expanding, we believe Tianli is on a solid footing for future growth."

Third Quarter 2013 Financial Results:

• Revenue for the third quarter of 2013 increased by $2.15 million, or 33%, to $8.73 million from $6.57 million for the same period of 2012.
• Diluted earnings per share was $0.03 vs. last years third quarter loss of ($0.10.)

Mrs. Hanying Li, Chairwoman and CEO of Tianli Agritech, Inc. commented, "On the back of a gradual recovery of pork prices and strong growth momentum for our black hog program and retail operations, we are very pleased to report our third quarter financial results that highlighted 33% top-line growth and the return to profitability after more than a year. Recently, we also regained compliance with the minimum bid price requirement of $1.00 per share for continued listing of our common stock on the Nasdaq Capital Market and completed a $3.2 million Private Placement with Mr. Wei Gong, a prominent investor and one of the pioneers of incubation centers in China. As we continue to advance our black hog program and expand our retail presence, we believe better days lie ahead of us. We want to thank our shareholders, many of whom have been with us since our IPO in 2010, for their continued patience and support."

WUHAN CITY, China, Oct. 30, 2013 /PRNewswire/ -- Tianli Agritech, Inc. (NASDAQ: OINK) ("Tianli" or the "Company"), a leading producer of breeder hogs, market hogs and black hogs, headquartered in Wuhan City, China, today announced that on October 28, 2013 the Company issued and sold an additional 522,000 common shares (the "Shares") at $1.16 per share for a total consideration of $605,520 to Mr. Wei Gong, a PRC citizen and a member of the Board of Directors. This is the balance of a previously announced Private Placement (the "Transaction") that raised an aggregate of $3,201,600 for the Company, pursuant to a Subscription Agreement dated September 28, 2013 (please refer to our FORM 8-K filed on September 30, 2013). Mr. Wei Gong now owns a total of 2,7600,000 common shares, or 19.77% of total outstanding common shares.

The Shares were issued in an "Off-shore" transaction exempt from the registration requirement of the Securities Act under Rule 903 of Regulation S of the Securities Act. The proceeds of the sale will be used as working capital by the Company's variable interest entity, Wuhan Fengze Agricultural Science and Technology Development Co., Ltd. As a condition of the sale, Mr. Gong agreed not to sell the Shares for 18 months and thereafter at not less than $1.16 per share. No brokerage or other commissions were paid to any underwriter, broker-dealer or other person in connection with the Transaction.

WUHAN CITY, China, Oct. 17, 2013 /PRNewswire/ -- Tianli Agritech, Inc. (NASDAQ: OINK) ("Tianli" or the "Company"), a leading producer of breeder hogs, market hogs and black hogs, headquartered in Wuhan City, China, today announced that it received written notification from the NASDAQ Stock Market ("NASDAQ") on October 15, 2013 confirming that the Company has regained compliance with the minimum bid price requirement of $1.00 per share for continued listing of its common stock on the Nasdaq Capital Market.

As previously announced, on February 6, 2013, NASDAQ notified the Company that the bid price of its common stock had closed at less than $1.00 per share over the previous 30 consecutive business days and, as a result, the Company was not in compliance with Listing Rule 5550(a)(2)("Rule"), the minimum bid price rule. The Company was provided 180 calendar days, or until August 5, 2013, to regain compliance with the Rule. Additionally, on August 2, 2013, NASDAQ notified the Company that it had been granted an additional 180-day extension period, or until February 3, 2014, in which to regain compliance with the Rule.

On October 15, 2013, NASDAQ notified the Company that the closing bid price of its common stock has been at $1.00 per share or greater for 10 consecutive business days, from October 1, 2013 to October 14, 2013. Accordingly, the company has regained compliance with Nasdaq Listing Rule 5550(a)(2)("Rule"), and the matter is now closed.

If the Company remains in compliance with the minimum bid price Rule, its Board of Directors is not likely to use the authority given to it at the Company's shareholder meeting on October 11^th to cause a reverse split of the Company's common stock. Any decision regarding a reverse stock split will be made by the Board of Directors in light of the relevant factors at the time a reverse split is considered by the Board.

WUHAN CITY, China, Oct. 17, 2013 /PRNewswire/ -- Tianli Agritech, Inc. (NASDAQ: OINK) ("Tianli" or the "Company"), a leading producer of breeder hogs, market hogs and black hogs, headquartered in Wuhan City, China, today announced that it received written notification from the NASDAQ Stock Market ("NASDAQ") on October 15, 2013 confirming that the Company has regained compliance with the minimum bid price requirement of $1.00 per share for continued listing of its common stock on the Nasdaq Capital Market.

As previously announced, on February 6, 2013, NASDAQ notified the Company that the bid price of its common stock had closed at less than $1.00 per share over the previous 30 consecutive business days and, as a result, the Company was not in compliance with Listing Rule 5550(a)(2)("Rule"), the minimum bid price rule. The Company was provided 180 calendar days, or until August 5, 2013, to regain compliance with the Rule. Additionally, on August 2, 2013, NASDAQ notified the Company that it had been granted an additional 180-day extension period, or until February 3, 2014, in which to regain compliance with the Rule.

On October 15, 2013, NASDAQ notified the Company that the closing bid price of its common stock has been at $1.00 per share or greater for 10 consecutive business days, from October 1, 2013 to October 14, 2013. Accordingly, the company has regained compliance with Nasdaq Listing Rule 5550(a)(2)("Rule"), and the matter is now closed.

If the Company remains in compliance with the minimum bid price Rule, its Board of Directors is not likely to use the authority given to it at the Company's shareholder meeting on October 11^th to cause a reverse split of the Company's common stock. Any decision regarding a reverse stock split will be made by the Board of Directors in light of the relevant factors at the time a reverse split is considered by the Board.

WUHAN CITY, China, October 3, 2013 /PRNewswire/ -- Tianli Agritech, Inc. (NASDAQ:OINK) ("Tianli" or the "Company"), a leading producer of breeder hogs, market hogs and black hogs, headquartered in Wuhan City,China, today announced that its operating subsidiary, Hubei Tianzhili Breeder Hog Co. Ltd. ("Tianzhili"), had signed one-year sales contracts with eight hotels and restaurants in Wuhan City, Hubei Province. Among the eight new customers for the Company's Tianli-Xiduhei� black hog meat cuts are three hotels - WuLingNianDai, DongXin, and Citizen and five restaurants - NongJiaXiaoYuan, ChuYuWang, ShuiMoRenJia, CuiZhuYuan, and XiaXingTianXia.

"We are delighted to serve these leading hotels and restaurants with our premium quality black hog meat cuts. Our association with these well-known hotels and restaurants should enhance the reputation of our branded black hog meat. As our distribution network continues to expand at a fast clip, we are increasingly excited about the growth prospects of our black hog program and our retail business. This, combined with the recovery of pork prices in recent months, sets the stage for continuing top-line growth and Tianli's return to profitability in coming quarters," said Mrs. Hanying Li, Chairwoman and Chief Executive Officer of Tianli.

WUHAN CITY, China, October 3, 2013 /PRNewswire/ -- Tianli Agritech, Inc. (NASDAQ:OINK) ("Tianli" or the "Company"), a leading producer of breeder hogs, market hogs and black hogs, headquartered in Wuhan City, China, today announced that its operating subsidiary, Hubei Tianzhili Breeder Hog Co. Ltd. ("Tianzhili"), had signed one-year sales contracts with eight hotels and restaurants in Wuhan City, Hubei Province. Among the eight new customers for the Company's Tianli-Xiduhei™ black hog meat cuts are three hotels - WuLingNianDai, DongXin, and Citizen hogand five restaurants - NongJiaXiaoYuan, ChuYuWang, ShuiMoRenJia, CuiZhuYuan, and XiaXingTianXia.

"We are delighted to serve these leading hotels and restaurants with our premium quality black  meat cuts. Our association with these well-known hotels and restaurants should enhance the reputation of our branded black hog meat. As our distribution network continues to expand at a fast clip, we are increasingly excited about the growth prospects of our black hog program and our retail business. This, combined with the recovery of pork prices in recent months, sets the stage for continuing top-line growth and Tianli's return to profitability in coming quarters," said Mrs. Hanying Li, Chairwoman and Chief Executive Officer of Tianli.

WUHAN, China, September 30, 2013 /PRNewswire/ -- Tianli Agritech, Inc. (NASDAQ:OINK) ("Tianli" or the "Company"), a leading producer of breeder hogs, market hogs and black hogs, headquartered in Wuhan City,China, today announced that the Company has agreed to sell 2,760,000 shares of its common stock at a price of$1.16 per share ($3.2 million in the aggregate) to Mr. Wei Gong (the "Investor"), a citizen of the PRC. The offering price represents an approximately 43% premium over Tianli's share price at last Friday's market close of $0.81.

To comply with Nasdaq Marketplace Rule 5635(d) which limits the number of shares of the Company's common stock that can be sold in a private placement to no more than 20% of the 11,194,000 shares outstanding, subject to certain exceptions as provided in the Nasdaq Marketplace Rules, the Company sold 2,238,000 shares of its common stock to the Investor for a total consideration of $2,596,080 on September 28, 2013. The balance, 522,000 shares with a total consideration of $605,520, is expected to be completed within three days after the first to occur of (1) the receipt by the Company from Nasdaq of an acknowledgement that it is exempt from Marketplace Rule 5635(d) or (ii) the receipt by the Company of a vote of its shareholders approving the sale by the Company to the Investor of a number of shares greater than 20% of the shares currently outstanding.

Mrs. Hanying Li, Chairwoman and CEO of Tianli Agritech commented, "We are very pleased to welcome Mr. Wei Gong to be a substantial shareholder of Tianli and appreciate the support of our new and existing investors. As a prominent investor, a prolific author, and one of the pioneers of incubation centers in China, Mr. Gong currently serves as the Director of Wuhan East Lake Hi-tech Innovation Center, a position he has been holding since 1987. We believe the value of having Mr. Gong as our substantial shareholder is both financial and strategic and expect to benefit tremendously from Mr. Gong's involvement in our business."

Mr. Wei Gong stated, "We believe China's continuing transition from export- and investment- driven growth to domestic consumption-driven growth bodes well for the hog industry. With its well established market position, steadily growing Black Hog Program in Enshi Prefecture, and quickly expanding retail presence, in our view Tianli is well positioned to further strengthen its leading market position in the Wuhan market and take full advantage of the growing trend in pork consumption in China. With the stock trading at just 0.2x of its book value, we are thrilled to have the opportunity to take a large position in the Company at a very reasonable price. We look forward to a mutually beneficial relationship with Mrs. Li and the Tianli team for many years to come."

WUHAN CITY, China, August 21, 2013 /PRNewswire/ -- Tianli Agritech, Inc. (NASDAQ:OINK) ("Tianli" or the "Company"), a leading producer of breeder hogs, market hogs and black hogs, headquartered in Wuhan City, China, today announced that the company had signed an agreement with WUSHANG MART to sell cuts of its Tianli-Xiduhei� black hog meat through three of WUSHANG MART's retail outlets located in Wuhan City, Hubei province.

WUSHANG MART is a supermarket chain with retail outlets across major cities in Hubei province and a wholly owned subsidiary of Wuhan Department Store Group Co., Ltd. (ticker: 000501.SZ). Established in 1959, Wuhan Department Store Group is one of the oldest and largest retail enterprises in Hubei province with 15,793 employees as of the end of 2012. According to its latest Annual Report (filed on April 24, 2013), Wuhan Department Store Group had net sales of RMB 14.9 billion in 2012, of which WUSHANG MART contributed approximately RMB 6.2 billion, or 42% of total net sales. More information about Wuhan Department Store Group can be found at: http://www.wushang.com.cn.

Mrs. Hanying Li, Chairwoman and CEO of Tianli Agritech commented, "Since we resumed our retail operations in April this year, we have made significant progress in our effort to build out our retail distribution network for our Tianli-Xiduhei� hog meat cuts. Today's announcement marks our fourth partnership with leading supermarket chains in the Wuhan market following LAO NONG MIN, NEWSTAR, and ZHONGBAI. As we are committed to further expand our retail outreach in Wuhan as well as other geographic markets, we expect significant growth from our retail operations in coming quarters."

Second Quarter 2013 Conference Call Transcript

Second Quarter 2013 Financial Results:

• Revenue for the second quarter of 2013 increased by $0.45 million, or 7%, to $6.84 million from $6.39 million for the same period of 2012.
• Gross profit (loss) for the second quarter of 2013 was ($0.28) million, compared to gross income of $0.80 million for the same period of last year.
• Net loss from continuing operations for the second quarter of 2013 was $1.14 million, compared to net income of $0.27 million for the same period of 2012.
• Diluted earnings per share was ($0.09) down -388% from the second quarter 2012 of $0.03.

Mrs. Hanying Li, Chairwoman and CEO of Tianli Agritech commented, "Despite continued weakness in overall pork demand and a decline in pork prices, our revenue increased by 7% to $6.8 million in the second quarter of 2013 as the number of hogs we sold grew by 30% to a record level of 36,464 hogs which more than offset the 18% decline in average selling price per hog. We also resumed our retail operations and started to sell our Tianli-Xiduhei� hog meat cuts through leading supermarket chains in theWuhan market during the second quarter. Looking ahead, as we continue to focus on expanding our black hog program in Enshi prefecture and building out our retail operations, we believe Tianli is well positioned for a rebound of the hog industry in coming quarters."

WUHAN CITY, China, August 6, 2013 /PRNewswire/ -- Tianli Agritech, Inc. (NASDAQ:OINK) ("Tianli" or the "Company"), a leading producer of breeder hogs, market hogs and black hogs, headquartered in Wuhan City,China, today announced that it received a letter, dated August 2, 2013, from the Nasdaq Stock Market notifying the Company that its application to transfer its listing from NASDAQ Global Market to NASDAQ Capital Market has been approved, effective with the start of trading on Tuesday, August 6, 2013. Tianli will continue to trade under its existing ticker symbol "OINK".

Additionally, the Nasdaq Stock Market granted Tianli an additional 180-day period, or until February 3, 2014, to regain compliance with Nasdaq's minimum $1.00 bid price per share rule for continued listing on the Nasdaq Capital Market. To regain compliance, the closing bid price of the Company's common stock must be at or above$1.00 per share for a minimum of 10 consecutive business days prior to February 3, 2014.

WUHAN CITY, China, July 1, 2013 /PRNewswire/ -- Tianli Agritech, Inc. (NASDAQ:OINK) ("Tianli" or the "Company"), a leading producer of breeder hogs, market hogs and black hogs, headquartered in Wuhan City,China, today announced that its operating subsidiary, Wuhan Fengze Agricultural Science and Technology Development Co. Ltd. ("Fengze"), had signed a cooperation agreement (the "Agreement") with Shenzhen Investment Banking International Marketing Group ("SIBIMG") to jointly develop a direct sales program (the "Program") for Tianli's branded black hog meat in Shenzhen and other cities in Guangdong Province.

Under the Program, participating families will pay an upfront fee of approximately RMB1,000 to receive a weekly delivery of 1.5 kilograms (approximately 3.3 lb) of Tianli-Xiduhei� black hog meat directly from Fengze for a period of thirteen weeks.

Mrs. Hanying Li, Chairwoman and CEO of Tianli Agritech commented, "We are very excited to begin selling our branded black hog products in Guangdong Province through this unique direct sales program piloted by SIBIMG. Both SIBIMG and Tianli are confident that we can bring up to 50,000 families into the Program by the end ofJanuary 2014, and thereafter grow the Program to potential level of annual sales equivalent to 75,000 black hogs. With food safety a growing concern for middle-class families in China, the sales program allows participating families to access our premium quality black hog meat products directly from us. We expect SIBIMG's strong presence in the Guangdong consumer market and vast expertise in delivering sales and marketing solutions for enterprise customers to help us effectively penetrate the Guangdong market and accelerate our national retail expansion plan in coming months."

Tianli's black hogs and cuts of Tianli-Xiduhei� black hog meat are products of the Company's "10,000 families and 1,000,000 Black Hogs" program in Enshi Prefecture, Hubei Province. By March 31, 2013, the Company had provided funds totaling $12.67 million and completed the construction of 765 black hog farms in Enshi Prefecture. Tianli's black hog products now sell in major cities including Beijing, Wuhan, and Shenzhen.

WUHAN CITY, China, May 29, 2013 /PRNewswire/ -- Tianli Agritech, Inc. (NASDAQ:OINK) ("Tianli" or the "Company"), a leading producer of breeder hogs, market hogs, and black hogs, headquartered in Wuhan City,China, today announced that the company had signed an agreement with Zhongbai Warehouse Supermarket Co., Ltd. ("ZHONGBAI") to sell cuts of its Tianli-Xiduhei? black hog meat through five of ZHONGBAI's warehouse outlets in Wuhan, Hubei province.

Established in 1997, ZHONGBAI is a wholly owned subsidiary of Zhongbai Holding Group Co. Ltd. (ticker: 000759.SZ) ("Zhongbai Holding"), a leading supermarket chain in the Wuhan metropolitan area. According to its latest Annual Report, Zhongbai Holding had 244 warehouses, 651 convenience stores, 5 department stores, and 45 consumer electronics stores at the end of 2012. Net sales of Zhongbai Holding totaled RMB 15.7 billionin 2012, of which ZHONGBAI contributed approximately RMB 11.2 billion.

Mrs. Hanying Li, Chairwoman and CEO of Tianli Agritech commented, "We are very excited to see cuts of our branded black hog meat gain traction in the Wuhan market following our recent entry into the Beijing market. This marks an important milestone for our retail channel buildout effort and could potentially open the door for us to gain broader access to Zhongbai Holding's network of stores. As we are committed to expand our reach in theWuhan market and explore other geographic markets, we expect retail sales of our black hog products to generate meaningful revenue and earnings in coming quarters."

Tianli's black hogs and Tianli-Xiduhei? meat cuts are products of the Company's "10,000 families and 1,000,000 Black Hogs" program in Enshi Prefecture, Hubei Province. By March 31, 2013, the Company had provided funds totaling $12.67 million and completed the construction of 765 black hog farms in Enshi Prefecture.

First Quarter 2013 Financial Results

• Revenue for the first quarter of 2013 increased 10% to $7.39 million from the same period of 2012.
• Gross profit for the first quarter of 2013 was $0.81 million, a 38% decrease from the same period of last year.
• Net loss from continuing operations for the first quarter of 2013 was $0.18 million, compared to net income of $0.71 million for the same period of 2012.
• Net loss attributable to non-controlling interest, net loss attributable to common shareholders for the first quarter of 2013 was $0.11 million, or a loss of $0.01 per diluted share. This compared to net income attributable to common shareholders of $0.71 million, or $0.07 per diluted share for the same period of last year.

Mrs. Hanying Li, Chairwoman and CEO of Tianli Agritech commented, "The hog industry continued to face headwinds as retail pork prices remained depressed during the first quarter of 2013.The recent outbreak of H7N9 bird flu in certain regions in China also negatively affected consumer confidence and caused a temporary shift in consumer preference away from pork, putting further pressure on the hog industry. As a result, the average selling prices for both breeder and market hogs remained at the low levels of the fourth quarter of 2012 and decreased 7% and 8%, respectively, from the same period of last year. Despite these challenges, our revenue grew on both a year-over-year and sequential basis in the first quarter of 2013 as we sold more breeder hogs and market hogs which more than offset the decline in hog prices."

Mrs. Li continued, "Our black hog program continued to progress well. We completed the construction of 120 farms during the first quarter of 2013, which brought our total count of completed farms to 765 in Enshi Prefecture. We plan to fund and construct up to an additional 33 farms in the second quarter of 2013. Since the third quarter of 2012, we have sold 4,585 black hogs generating over $1.1 million in revenue. With our recent entry into the Beijing and Wuhanmarkets, we are excited about the prospects for our black hog program and expect it to contribute meaningfully to our revenue and earnings in 2013."

WUHAN CITY, China, May 6, 2013 /PRNewswire/ -- Tianli Agritech, Inc. (NASDAQ: OINK) ("Tianli" or the "Company"), a leading producer of breeder hogs, market hogs and black hogs, headquartered in Wuhan City, China, today announced that it has started to sell its branded black hog products through retail outlets in Wuhan City. Cuts of Tianli's black hog meat are currently available in the NEWSTAR supermarket as well as three LAO NONG MIN retail stores. This follows the successful entry of the Company's black hogs into the Beijing market in January.

The Company's black hogs and Tianli-Xiduhei� meat cuts are products of the Company's "10,000 families and 1,000,000 Black Hogs" program in Enshi Prefecture, Hubei Province. By the end of 2012, the Company had provided over $10 million in funding to participating farmers and completed the construction of 645 black hog rearing facilities in Enshi Prefecture. Tianli is committed to further expand its Black Hogs Program and expects the Program to achieve a production capacity of 30,000~50,000 black hogs in 2013.

Mrs. Hanying Li , Chairwoman and CEO of Tianli Agritech commented, "We are pleased to see our Tianli-Xiduhei� black hog meat cuts enter the Wuhan market. This, combined with our recent entry into the Beijing market, further demonstrates that our Black Hogs Program in Enshi Prefecture is starting to bear fruit after years of investment."

Mrs. Li continued, "As we plan to enter new geographic markets and further penetrate the Beijing and Wuhan markets in coming quarters, we expect our Black Hogs Program to contribute meaningfully to our revenue and earnings in 2013."

Second Quarter 2012

• Sales for the second quarter of 2012 decreased 17% to $6.4 million primarily due to the drop in selling prices for market hogs and fewer breeder hogs sold in the three months ended June 30, 2012 compared to the same period a year ago.
• Gross profit was $0.8 million, a 75% decrease from the same period last year. Gross margin was 12.5% in the second quarter of 2012 compared to 42% in the second quarter of 2011 as a result of significantly higher feed costs, the sale of fewer breeder hogs in Q2 2012 and the decrease in prices received for market hogs.
• Selling, general and administrative (SG&A) expenses were $0.4 million in the second quarter of 2012, a decrease of approximately $0.2 million from $0.6 million in the second quarter of 2011. Operating income of $0.4 million in the three months ended June 30, 2012 was down 86% from the corresponding period a year ago. Operating margins were 8.5% and 27.7% in the second quarter of 2012 and 2011, respectively.

Net income from continuing operations for the three months ended June 30, 2012 was approximately $0.3 million, down 89% from the same period last year. Earnings per fully diluted share were $0.03 compared to $0.24 last year. The weighted average diluted shares outstanding were approximately 10.1 million for both periods.

"We are managing our business for the long term," began Tianli's Chairwoman and CEO, Ms.Hanying Li. "Despite very challenging market conditions for breeder and market hogs in China, we still generated positive cash flows and remained profitable. Our ability to quickly turn our hog inventory into cash, along with our investments in our Black Hog program, differentiates Tianli from other hog operators. We remain focused on maintaining a solid financial position in order to capitalize on the ongoing industry consolidation."

WUHAN CITY, China, August 10, 2012 /PRNewswire-Asia/ -- Tianli Agritech, Inc. (NASDAQ:OINK) ("Tianli" or the "Company"), a leading producer of breeder hogs and market hogs based in Wuhan City, China, today announced it has secured an agricultural subsidy from Hubei Province.

The Bureau of Animal Husbandry and Veterinary of Hubei Province, China, awarded Tianli Agritech a subsidy in support of the Company's work with black hog farmers in Hubei Province's Enshi Prefecture. The subsidy will last between five to eight years and will include yearly subsidy payments of approximately $150,000 to $200,000 (800,000 CNY to 1,000,000 CNY) in support of Tianli's breeding and commercialization of black hogs in Hubei Province. The Company expects the subsidy to be paid once per year with the first subsidy payment expected in 2013. Specifically, the subsidy is directed towards Tianli's contribution and efforts on the breeding and development of high-quality black hogs, and is intended to show support for the program from the provincial government. The Company believes that such support by the provincial government will provide additional benefits in building its black hog sales channels in Hubei Province.

"This is an important validation of our Black Hogs Program which we began in 2011 and have just begun selling black hogs in the market place," began Hanying Li, Chairwoman and CEO of Tianli Agritech. "Throughout Tianli's existence, we have worked closely with the Animal Husbandry and Veterinary Bureau in our Province and many other Agricultural Associations. We believe in close cooperation with our local institutions which in turn provide us with greater insight to agricultural and farming initiatives which impact our business and greater visibility in the community. This particular subsidy has been heralded by our management team and the farming base which we work as a solid certification of our approach and farming methodologies. Additionally, this subsidy award represents strong support from the Hubei provincial government which we believe will help us market and sell black hogs not only in Hubei Province but also in the North China Area. The ancillary benefit for our shareholders is yet another confirmation of our operations in the market which we intend to use as a differentiator of the quality of our black hog meat and integrity of Tianli's operations."

WUHAN CITY, China, June 20, 2012 /PRNewswire-Asia/ -- Tianli Agritech, Inc. (NASDAQ: OINK - News) ("Tianli" or "the Company"), a leading producer of breeder and market hogs, and retailer of pork products, headquartered in Wuhan City, China, today announced that the Company is refocusing its retail expansion strategy. In conjunction with the revised strategy, Tianli terminated its exclusive agreement with An Puluo Food, Inc. ("An Puluo") executed on March 29, 2011.

Tianli and An Puluo Foods began selling branded packaged pork through An Puluo's retail distribution channels in April 2011. After 14 months of collaboration, Tianli has decided to diversify its retail distribution to more partners in order to reach a broader customer base to larger cities for its branded pork products. As a result, Tianli terminated its exclusive marketing program with An Puluo Foods to provide the Company additional retail and meat processing options and partnerships. In the near term, Tianli will remain a customer of AnPuluo Foods to service their combined customer base of Tianli-AnPuluo branded pork meats while the Company engages other, non-exclusive, sales agreements.

Tianli is committed to its retail expansion. A central part of its retail growth strategy centers around its Enshi Black Hog program started in the third quarter of 2011. Tianli's five-year exclusive agreement with government agencies in Enshi Autonomous Prefecture allows the Company to raise, process, and sell Black Hog products, which command premium prices and margins. Tianli is building its own brand in preparation for the launch of its Black Hog meat program in the third quarter of this year.

"We thank An Puluo for their hard work," started Ms. Hanying Li, Chairwoman and CEO of Tianli. "Both companies learned a great deal over the past year from our collaboration. Ultimately, we decided that it is in Tianli's best interest to expand the number of retail distribution partners in order to quickly scale this business and prepare for our Enshi Black Hog program. We are working quickly to execute this new strategy in order to service Chinese consumers' demand for higher quality pork meat."

Financial results for the first quarter of 2012.

• Gross profit was $1.7 million in the first quarter of 2012, a 29% decrease from the same period last year.
• Selling, general and administrative (SG&A) expenses were $1.1 million in the first quarter of 2012, an increase of approximately $0.3 million from $0.8 million in the first quarter of 2011.
• Net income for the three months ended March 31, 2012 was approximately $0.7 million, down 62% from the same period last year.
• Earnings per fully diluted share were $0.07 compared to$0.18 last year.

Tianli's Chairwoman and CEO, Ms. Hanying Li, stated, "We continue to see strong demand across each of our businesses. In the first quarter of 2012 we sold 34% more market hogs while our breeder hog sales were negatively impacted by a weak market and the contamination that occurred in December 2011, which resulted in a loss of approximately 500 breeder hogs. I am extremely pleased with the progress of our black hog program, which will become a big contributor to our sales later this year. We anticipate further growth by expanding the number of farms that participate in our program with local cooperatives to raise Enshi black hogs."

Fourth quarter Highlights:

• Revenue increased 49% year-over-year to $8.7 million due to higher selling prices, increased unit sales of Tianli market hogs plus retail sales of "Tianli An Puluo" hog meat.
• The retail division contiuted $1.7 millionof revenues in its second quarter of operations for the year.
• Net Income reached $ 8.1 million with $0.80 EPS

Tianli's Chairwoman and CEO, Ms. Hanying Li, began, "We completed another successful year, which included the acquisition of our 11^th hog farm and the launch of our Tianli-branded retail pork products through our partnership with An Puluo Foods. While our fourth quarter results were negatively impacted by complications resulting from contaminated feed at a few of our farms, we responded quickly to contain the impact. Having implemented a series of additional safeguards, we expect the negative drag on our financials to subside in the first half of 2012."

WUHAN CITY, China, Dec. 16, 2011 /PRNewswire-Asia/ -- Tianli Agritech, Inc. (NASDAQ: OINK) ("Tianli" or "the Company"), a leading producer of breeder hogs and market hogs based in Wuhan City, China, provided financial and operational updates.

Full Year 2011 Guidance

Based on sales through December 15, 2011, management expects full year results as follows:

Revenues include the sales of breeder hogs, meat hogs and sales from the Company's on-going retail operations in cooperation with An-Puluo Foods whereby the Company sells refrigerated pork products to 45 supermarkets in greater Wuhan, including Wal-Mart and other major retailers.  

"We have seen our sales trend nicely throughout the year. A combination of higher hog prices and an increase in the number of Tianli breeders and market hogs sold have produced impressive year over year growth for our Company," began Ms. Hanying Li, Chairwoman and CEO of Tianli. "Retail sales and profits have added to our revenue and earnings streams as anticipated and we expect this segment of our business to grow meaningfully in 2012 as we introduce our Black Hog meat into our sales channels.  We are excited at our growth prospects in 2012 and producing continued returns to shareholders."

Tianli expects to report its fourth quarter and full year 2011 results in March 2012. The Company will provide additional details regarding its operations and financial outlook in coordination with the Company's earnings release and conference call.

On November 15, 2011, the Registrant held a conference call to discuss its financial results for the quarter ended September 30, 2011.

Stella Chang, Brean Murray:

Hi, thanks for taking my question and congratulations on the quarter. China government has received an investment program to increase pork supply and bring down current price, not only during the peak season for pork consumption. Could you please comment on the price change? And what is your expectation on it and sales volume for your product metrics in the 4Q? Thank you.

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Third Quarter 2011 Results

• Revenue for the third quarter of 2011 increased $3.7 million, or 65%, to $9.2 million from the prior year.
• Net income for the three months ended September 30, 2011 was approximately $2.9 million, up 33% from $2.2 million last year.
• Earnings per fully diluted share were $0.29 compared to $0.23 the previous year. Share counts were 10.1 million and 9.7 million in the third quarter of 2011 and 2011, respectively.

Tianli's Chairwoman and CEO, Ms. Hanying Li, stated, "Our strong third quarter results were driven by robust underlying demand for pork in China. Despite a shift toward market hogs this quarter, our sales and margins benefited from higher pricing. As we ramp capacity at our 10^th farm, we expect continued growth in units and pricing for the remainder of 2011 and added revenue contributions from our AnPuluo Foods retail program."

Second Quarter 2011 Results

"We are excited about the growth outlook for our industry and our company," continued Ms. Hanying Li, Chairwoman and CEO of Tianli Agritech. "Our expanding network of farms will continue to support our core business operations of selling breeders and market hogs. More importantly, our cooperation with AnPuluo Farms and their retail sales points will provide us an established platform from which we can greatly increase our profits through sales of premium black hog meat. We envision our black hog project being a key growth driver of our business in the coming years and a means to provide additional returns to our global shareholder base."

First Quarter Results:

• Revenue increased to $5.9 million, up 32% from $4.5 million in the first quarter of 2010, reflecting higher pricing and an increase in the number of hogs sold. Revenue growth was slightly impacted by modifications to facilitate housing of new breeding stock.
• Breeder hog revenue increased by 79% in the quarter, and breeder hog revenue comprised 41% of the Company's revenue, up from 30% in the first quarter of 2010.
• Gross profit increased by 32% to $2.5 million.
• EPS was $0.18 in the first quarter of 2011 as compared to $0.21 in the first quarter of 2010, reflecting the higher share count resulting from the Company's IPO in 2010.

Tianli's Chairwoman and CEO, Ms. Hanying Li, stated, "We continue to see good demand for our hogs, as reflected by strong pricing in the first quarter and our growth will benefit from the recent acquisitions of the Hengdian and the An Puluo farms. We will also be upgrading our stock this month with the arrival of French Yorkshire purebred breeders. We are equally excited about the significant opportunities stemming from Tianli's recently announced role in managing the breeding and sales of the Enshi Black Hogs. These hogs are prized for their prime quality meat, which is sold at premium prices at retail outlets. We are confident that our ongoing farm acquisitions, the opening of the retail sales channels per our recent agreement with An Puluo and the improvements to our product line provides our company with a strong foundation for growth for the balance of the year and future years."

WUHAN CITY, CHINA--(Marketwire - May 12, 2011) - Tianli Agritech, Inc. today announced that on May 12, 2011 it successfully completed the acquisition of the assets of the AnPuluo Farm, a 20,000 annual head production hog farm in Enshi Tujia and Miao Autonomous Prefecture, which is located within the Hubei province.

The Company will pay an aggregate of approximately $2.2 million for rights to the land and equipment. Deposits aggregating $1.5 million will be retained by the seller, with the balance of the purchase price, $0.7 million, to be paid by July 15th, 2011. The Company expects to invest approximately $0.3 million in facility upgrades and approximately $0.4 to $0.6 million in breeding stock to bring the farm to full production and fully stocked by the second half of 2012.

"This acquisition is a significant milestone for our Company, making us one of the largest hog producers in Hubei province," said Tianli's Chairwoman and CEO, Ms. Hanying Li. "We estimate the payback period to be less than two years once the farm is fully stocked and shipping Tianli breeders and market hogs to our customers. We believe the AnPuluo Farm will be a strong addition to our growing portfolio of farms as we continue our expansion strategy and seek out further potential candidates to add to our growing network of farms."

We are actively pursuing the acquisition of additional hog farms. While we do not have any firm agreement, or commitment, we are in discussions to acquire such facilities. We believe that the average purchase price for a hog farm with an annual production capacity of 20,000 hogs is approximately $2 million. We expect to continue to make purchases of purebred breeding stock.

GeoTeam® Note: The company comments regarding liquidity needs are much less detailed in the 2010 10Q than in the 2010 third quarter report.  This could open the door for a dilutive event.

Fourth Quarter Highlights:

• Sales of $5.8m vs. $3.4m a year ago.
• Gross profits of $2.5m vs. $1.5m a year ago.
• Net income of $2.2m vs. $1.4m a year ago.
• Diluted EPS of $0.22 vs. $0.17 a year ago.

Tianli's Chairwoman and CEO, Ms. Hanying Li, stated, "I am pleased that Tianli finished its first year as a public company with such strong results. We look forward to the Company's continued growth in 2011 as we are now benefiting from the production of our ninth farm and we are in the process of stocking our tenth farm, acquired in late December of 2010, with breeding sows. Our recent announcement of the pending acquisition of the AnPuluo farm, which would be our eleventh farm, illustrates how we are utilizing the funds provided by our IPO to seek out very attractive expansion opportunities, thus positioning the Company to benefit from China's strong demand for pork products."

WUHAN CITY, CHINA--(Marketwire - January 7, 2011) - Tianli Agritech, Inc. today announced its preliminary 2011 financial guidance as follows:

(1) Excludes any potential acquisitions that have not been announced. 
(2) Reflects weighted average outstanding shares of 9 million shares and 10.1 million shares for 2010 and 2011, respectively, reflecting the effect of the July 2010 IPO.

"We expect to benefit from additional production in 2011 as our newly constructed 9^th farm ramps up to capacity," explained Tianli's Chairwoman and CEO, Ms. Hanying Li. "The demand for market and breeder hogs is being supported by China's strong economic growth. And with a solid cash balance and ongoing positive cash flows, Tianli continues to pursue the acquisition of additional farms in support of our growth objective."

The Company expects to sell between 120,000 to 124,000 hogs in 2011, with Tianli's 9^th farm, which commenced operations in May 2010, projected to provide approximately 14,000 hogs in 2011.

WUHAN CITY, CHINA--(Marketwire - December 16, 2010) - Tianli Agritech, Inc. today announced that it has entered into an agreement to purchase the assets of Hengdian Farm, a 20,000 head annual production capacity hog farm located in Wuhan City, China and owned by Wuhan Taida Breeding Co. Ltd. The agreement calls for payment of approximately $1.4 to $1.6 million to the seller to be finalized upon the transfer of equipment. The Company expects to close the transaction by the end of December 2010.

"We are very excited about this acquisition, which will become our tenth farm," began Tianli's Chairwoman and CEO, Ms. Hanying Li. "We identified this farm as an acquisition candidate in September and upon making a $400,000 deposit, our team began an extensive due diligence process. We have acquired and integrated multiple farms over the past four years, and we are confident in our ability to successfully equip this farm to produce the high quality breeding and market hog stock for which Tianli is well known," Ms. Li continued. "After we upgrade the farm equipment and complete the cleansing process, we will populate the farm with high-quality breeding stock. We expect these breeders will arrive in February, enabling the initial production to be brought to market in the fourth quarter of 2011. While this farm will have a minimal impact on the Company's 2011 financials, once it reaches full operating capacity in 2012, it will generate annual revenue of approximately $4.5 million at current market prices, with a targeted operating margin of approximately $1.8 million."

Hengdian Farm is located in Wuhan City. The facilities are in good condition as the farm was constructed in 2008 and only operated for a few months after completion. The Company will acquire the rights to 462 acres of land, 30 buildings and a variety of associated equipment. Tianli plans to invest approximately $500,000 to upgrade the farm's facilities and transfer its breeding stock to the Hengdian Farm.

Ms. Li concluded, "We expect our ninth farm, which we completed the construction in summer of 2010 and is currently selling breeder hogs, will reach its full annual hog production capacity of 20,000 by next summer. Including the 20,000 production capacity we expect from the Hengdian Farm, our total annual hog production capacity would increase by approximately 36% to 150,000 hogs. We continue to actively pursue additional asset purchases like Hengdian, which we anticipate will generate a very attractive return on invested capital, resulting in a short payback period. Our existing cash balances plus strong cash flow provide us with the ability to fund continued growth."

"We would like to provide our shareholders with our understanding of the potential effect on Tianli Agritech as a result of the China State Council's recently announced policies intended to stabilize consumer pork prices and facilitate adequate supplies of pork products to consumers," stated Tianli's Chairwoman and CEO, Ms. Hanying Li. "The policies include various provisions intended to reduce the costs of bringing agricultural products to market and to assist consumers to pay for these staples. After reviewing these policies and based on our current understanding, we do not see that these policies will have a direct impact on how Tianli conducts business and how the prices for our breeder hogs and our market hogs are established." Ms. Li continued by saying, "Our revenue projection for the fourth quarter assumed price levels consistent with those we had experienced in the third quarter. The prices that we have realized during the first two months of the current quarter are slightly better than the third quarter levels and we expect that will be the case for the full fourth quarter. The number of breeder and market hogs sold during the current period is meeting our expectations."

Third Quarter 2010 Financial Highlights

• Revenue was $5.5 million, representing an increase of 76% as compared to the third quarter of 2009.

• Breeder hog revenue increased 83% and meat hog revenues increased 70% over the comparable 2009 period. The higher margin breeder revenue comprised 46% of the Company's revenue in the third quarter.

• Gross profit more than doubled to $2.4 million with a gross margin of 44.2%, up more than six percentage points from last year's level.

• Net income was $2.2 million, up 106% from 2009's third quarter, resulting in earnings per share of $0.23.

Tianli's Chairwoman and CEO, Ms. Hanying Li, stated, "We continue to witness the strong performance of our business as evidenced by the third quarter results. This strengthens our belief that focusing on the genetic quality of our stock has enabled us to become a preferred source of breeder hogs, resulting in higher margins while reinforcing the quality positioning of the Tianli brand. With the capital provided by our IPO proceeds, we are now preparing to significantly expand the Company's capacity while further enhancing the quality of our products. Tianli is currently in active discussions regarding the potential acquisition of various hog farms, and this expansion would better position the Company to benefit from China's continued growth in its demand for pork."

2010 Guidance

• Revenues of approximately $21 million.
• Net income of $8.1 million to $8.3 million.
• EPS of $0.90 to $0.92.

Commitments for Capital Expenditures We are considering acquiring additional hog farms. While we do not have any firm agreement, understanding or commitment to acquire such a facility, we are in negotiations for such facilities. The average selling price for a hog farm with an annual capacity of 20,000 hogs is approximately $2 million to $2.5 million. While we do not have any commitments to do so, we expect to purchase additional purebred hogs over the next 15 months for approximately $1.0 million to $1.5 million, in part for use in any new farms acquired. We are also investigating a plan to open retail shops to sell our pork products at a premium price so that we can further benefit from our reputation for producing high-quality, low-pollution and low-additive pork products. We expect that the total cost for opening such retail locations would be less than $400,000.

Our Chief Executive Officer, Ms. Hanying Li, has loaned funds to our Company to complete the construction of our ninth farm, which commenced operations in May 2010. While the loan from Ms. Li is payable on demand, we do not believe the repayment of the loan is likely to affect our liquidity during the rest of 2010 as Ms. Li has agreed not to request repayment of the loan during 2010.

On July 19, 2010, we closed our IPO. We sold 2,000,000 common shares at a price of $6.00 per share and the shares commenced trading on the NASDAQ Global Market on July 20, 2010. Net proceeds from the offering were approximately $10,600,000, and these funds were placed in our bank account in Hong Kong. We are not able to utilize these net proceeds within China until we have completed certain remittance procedures. On August 2, 2010 we received $2,775,127 of these funds. We expect to utilize these net proceeds to construct and/or acquire additional hog farms, purchase additional breeding stock, possibly establish retail shops in Wuhan City as well as for our working capital needs and professional fees including Sarbanes-Oxley compliance costs.

The GeoTeam® has been accumulating OINK since its precipitous fall from its IPO price of $6.00 to eventually trade as low as $3.60. On October 5, 2010 we issued a short-term trade alert. Aided by a small float, a delayed reaction to its second quarter strong earnings and a unique make good arrangement that is very shareholder friendly, we think the stock could at the very least reach its IPO price, just as China New Borun Adr (NYSE:BORN) did after it traded below its IPO price of $7.00 for several weeks.

OINK has rebounded from its lows on the heels of Zhongpin (NASDAQ:HOGS) recent impressive price move from around $11.00 per share in early June to above $19.00 as of October 8, 2010.  This is a stock we have also been trading.

Can OINK trade past $6.00? We are not ready to make that definitive call at this time. According to its 2010 EPS make good target of $0.74 ($0.56 tax adjusted), the company will report EPS of $0.27 ($0.20 tax adjusted) for the back half of 2010 vs. $0.31 ($0.23 tax adjusted) for the 2009 comparable period. Keep in mind that make goods are often conservative. If the company could pull a more impressive EPS growth rate in the last half of 2010, we think there is a chance that the stock could eclipse $8.00. We plan to methodically sell shares if they rise.

Please note:

• OINK's SAIC files do not match SEC files. However, OINK is a variable interest entity (VIE).
• OINK does not retain a top auditor. (Sherb & Co).
• We don't consider OINK's underwriter as a top tier firm.

We have asked GeoInvesting Contributor Dan France to take a look at the OINK story and provide us with his feedback.

Second Quarter Financial Highlights:

• Revenue for the second quarter increased 88% to $5.4 million, up from $2.9 million recorded in the second quarter of 2009.
• Average price per hog was up 25% for the quarter, assisted by a greater proportion of sales coming from breeder hogs.
• Gross profit increased 152% to $2.4 million as the gross profit margin rose to 44% from 33%.
• Net income in the second quarter rose nearly 150% to $2.1 million, compared to $0.9 million in the second quarter of 2009.
• Earnings per share in the second quarter of 2010 was $0.26 compared to $0.11 per share in the second quarter of 2009.

Tianli's CEO Ms. Hanying Li said, "The second quarter of 2010 was an exciting period for Tianli Agritech. We achieved excellent sales levels of both breeder hogs and meat hogs. Revenues attributable to breeder hogs increased by approximately 370%, while meat hog revenue rose 31% with a total of 25,815 hogs sold in the quarter. Significantly more hogs were sold in the quarter because we have expanded the capacity of the company's existing farms. Another major factor is our success in maintaining high standards of health as a result of the use of our proprietary premix feed. We have increased revenues by having more hogs available for sale without incurring higher costs of medical care.

"Our net income grew even more quickly than our revenues. This reflects a higher growth rate for sales of breeder hogs, which have better margins than meat hogs and increased prices for all hogs as compared to last year. Our efficient control and management of production and administrative expenses also contributed to the strong profit improvement."

Ms. Li continued, "We completed our IPO in late July enabling us to take further steps to build Tianli into one of China's largest hog and pork producers. We expect to use the $10.6 million of net proceeds from the IPO to further expand our capacity by acquiring additional hog farms and purchasing more breeding stock to respond to the strong demand for hogs in China. In the meantime, we anticipate that our ninth farm, acquired in May, will lift our total annual capacity from the current level of 110,000 hogs to 130,000 by the end of 2010. Based on the results of the first half of 2010 and our expectations for the second half of 2010, we are reaffirming our guidance for the full year 2010 of $7.5 million of net income."

Tianli Agritech Announces Pricing of Initial Public Offering

"OINK" To Trade on Nasdaq Global Market

Wuhan City, China – July 14, 2010 – Tianli Agritech, Inc.(Nasdaq: OINK), a leading hog breeding company headquartered in Wuhan, China, announced today the pricing of its initial public offering of a minimum of 1,667,000 and a maximum of 2,000,000 common shares at $6.00 per share.

Tianli Agritech expects its common shares to begin trading on the Nasdaq Global Market on Tuesday, July 20, 2010 under the ticker symbol "OINK." The CUSIP for the issue is G8883T 104.

All of the shares to be issued in the offering are being sold by Tianli Agritech, Inc.

Anderson & Strudwick, Inc. is acting as the lead placement agent for the offering.

Company Snapshot:

Research and development, raising, breeding and selling hogs in the People's Republic of China.

Industry Snapshot

• China is also the world’s largest hog producing and pork consuming country. China has accounted for nearly half of both the world’s pork production and consumption for more than five years. According to the U.S. Department of Agriculture, China is again expected to be the driving force behind global pork production in 2010. Not only does China consume a significant amount of pork in the aggregate; Chinese per-capita pork consumption is among the highest in the world, as pork is China’s most popular meat. China consumes over 600 million pigs a year.
  
• China’s hog industry is in the midst of a transition from a large number of small household farms to larger, more commercial farms. Meat hog production in the PRC is currently dominated by backyard farms (those that sell 5-10 hogs annually) and small farms (those that sell less than 100 hogs annually). Farms that sell less than 100 hogs per year comprise approximately 75% of the hog farms in China and account for approximately one-third of the hogs sold annually in China. These farms sell their products to local rural markets. Farms that sell between 100 and 500 hogs a year account for 21% of China’s hog farms and approximately one-third of the hogs sold annually in China. Farms that sell between 500 and 3,000 hogs represent less than 3% of China’s hog farms but account for approximately 19% of the hogs sold in China. Those that sell more than 3,000 hogs annually account for less than one-half of a percent of all hog farms but sell more than 15% of China’s hogs annually.

Post Merger Share Calculation:

• 8,125,000: Pre IPO outstanding shares
• 1,667,000 to 2,000,000: Newly issued shares of Common Stock
• 200,000: Shares from placement agent warrants with an assumed exercise price of $7.20

GeoTeam® best effort calculation of total post reverse merger shares assuming full conversions: 9,992,000 to 10,325,000

Financial Snapshot: see note

Note that Tianli has undertaken some shareholder friendly moves:

• No significant amount of warrants issued in the IPO
  
  "In connection with this offering, we will, for a nominal amount, sell our placement agent warrants exercisable at a rate of one warrant per share to purchase up to ten percent of the shares sold in the offering. These warrants are exercisable for a period of five years from the date of issuance at a price equal to 120% of the price of the shares in this offering."
  
  
• Make-Good arrangement is attractive (see note)

The company has yet to provide details on its 6 months 2010 financials.

"Certain shareholders of our company [Tianli Agritech Inc], Hanying Li and Bihong Zhang, have agreed to place, on a prorated basis, that number of beneficially owned common shares into escrow that is equal to 50% of the maximum number of shares to be sold in this offering .  To the extent our audited after-tax earnings per share for the year ending December 31, 2010 are less than $0.7407, our company will redeem and cancel to the extent necessary to cause our audited after-tax earnings per share to be equal to $0.7407:"

Source: SEC Filing

^a Tianli Agritech Inc. is paying no taxes.  The GeoTeam® applies a 25% and 36% tax rate for Chinese and United States companies respectively.

This is the first Make-Good agreement that we have come by that ensures the attainment of an EPS target by canceling escrow shares necessary to attain a target. In most cases the escrow shares transfer to investors of an IPO or merger transaction if a target is not met.

We view this as very shareholder friendly move and one we hope more firms will follow.  We are also impressed by the following statement Tianli made in the filing:

"We believe the Make-Good Escrow arrangement benefits the shareholders of our company (other than those who may forfeit shares without consideration) because it is designed to increase the likelihood that our company will achieve the after-tax earnings per share upon which our valuation is based. To the extent Make-Good Shares are redeemed without cost, the after-tax per-share earnings will increase for all remaining outstanding shares."

We will track this story.

1) We have presented earnings per share in OINK after giving retroactive effect to the reorganization of our company that was completed January 27, 2010.

(2) We have presented these pro forma earnings per share after (a) giving retroactive effect to the reorganization of our company that was completed January 27, 2010 and (b) assuming the redemption of all shares placed into escrow as described in the section entitled “Related Party Transactions – Make-Good Shares Subject to Redemption.” The number of escrowed shares is based on 50% of an assumed maximum of 2,000,000 common shares.