Pingtan Marine Enterprise Reports Financial Results For The Second Quarter Ended June 30, 2020

FUZHOU,China,Aug. 18,2020 --Pingtan Marine Enterprise Ltd. (Nasdaq: PME) ("Pingtan" or the "Company"),a global fishing company based in the People's Republic of China (PRC),today announced financial results for its secondquarter and first six months ended June 30,2020.

SecondQuarter 2020Financial Highlights (Year-on-Year Comparisons)

Revenue was$23.5million compared to $25.5 million.

Gross profit was$2.2million compared to $9.3 million.

Net losswas $1.7million compared to net incomeof $5.0million.

Net lossattributable to owners of the Company was $1.6 million,or$(0.02)per basic and diluted share,compared to netincomeattributable to owners of the Company of $4.6million,or $0.06per basic and diluted share.

Management Comments

Mr. Xinrong Zhuo,Chairman and CEO of the Company,commented,"Although the COVID-19 pandemic appears to be under control in China,the situation is still severe in many countries and regions of the world,and the pandemic has adversely affected the global market and economy. In the second quarter of 2020,a second wave of regional spreading of the coronavirus occurred in some cities in China,including Beijing,and some cases were related to seafood markets,which had an impact on the prices of marine catches. In the second quarter of 2020,although we saw a decrease of $1.7 million in revenue during the quarter compared to the same period in 2019,our sales volume peaked to 21.8 million kg,an increase of 41% compared to the same period in 2019 and the highest record of single-quarter sales volume in the last five years. With the regional spreading of the coronavirus generally contained,the Chinese market is gradually recovering,and the catering and entertainment industry is resuming normal operations. Although we are not able to estimate the future impact of the COVID-19 pandemic at this time,we believe that the Chinese consumers' demand for seafood will return and grow during the second half of 2020. In reaction to the potential market variations and to assist the Company in its development and expansion of catch species,we are building a large-scale Antarctica krill fishing and processing vessel with a gross tonnage of 8600 and overall length of 107 meters. Upon completion and operation of this vessel,our fishing areas will be expanded to the Antarctic waters and our fishing capacity will be further enhanced."

Factors AffectingPingtan'sResults of Operations

COVID-19 pandemic

The recentCOVID-19pandemic has spread rapidly throughout the world and significantly curtailed the global economic activities. As the first country to be engulfed in the pandemic,China introduced strict emergency quarantine measures and travel restrictions to contain the pandemic,which had a big impact on China's economy in the first half of 2020. Although it was generally believed that the pandemic was under control in the second quarter,the PRC government continued to take precautionary quarantine measures to avoid additional outbreaks of the pandemic,which had an adverse impact on the economic activities in China.

The continued precautionary quarantine measures by the PRC government and travel restrictions implemented by some countries have had a significant impact on many sectors across China,which has also adversely affected the Company's operations in China,despite the PRC government's efforts to revive the economy. To reduce the impact on its production and operation,the Company has taken and may continue to take actions in response as necessary,including but not limited to continued shifts in work system,paid leave and reducing the number of foreign crews on its vessels. Its management is focused on mitigating the effects of COVID-19 on its business operations while protecting the health of its employees. The Company will continue to actively monitor the situation and may take further actions that alter its business operations as may be required by local authorities or that the Company determines in the best interests of its employees,customers,partners and suppliers.

Some of Pingtan's customers are fish processing plants that exports processed fish products to foreign countries. These customers tended to reduce or postpone their purchases from the Company in the initial stage of the pandemic and have now started adjusting their business strategies in relation to exportation or domestic sale. These customers and other customers of the Company may further reduce or postpone their purchases in the future due to the pandemic,which may lead to an increase in inventory. The Company may take necessary de-stocking measures,such as lowering the selling prices of catches and extending the term of payment for certain accounts receivable,which may adversely affect the financial conditions and working capital of the Company.

The situation created by the COVID-19 pandemic has led to an unprecedented economic uncertainty globally. However,the extent of the impact on the Company's financial condition and results of operations is still highly uncertain and will depend on future developments,such as the ultimate duration and scope of the outbreak,its impact on its customers and exporters,how quickly normal economic conditions,operations,and the demand for its products can resume and whether the pandemic leads to recessionary conditions in China.

Although both the PRC government and the Company have taken measures in response to the pandemic,the Company anticipates that its results of operations will continue to be impacted by this pandemic in the third and fourth quarters of 2020,and is unable to reasonably estimate the extent of the impact on its full-year results of operations,its liquidity or its overall financial position.

The Company's Fishing Fleet

As of June 30,2020,of the Company's 143 vessels,69 were locatedin the international waters,12 were locatedin the Bay of Bengal in India,13 were located in the PRC,37 were located in the Arafura Sea in Indonesia,10 just completed the rebuilding projects and were preparing for operation in the international waters,1 transport vessel was in the modification and rebuilding stage and 1 new krill fishing and processing vessel was in building stage.

SecondQuarter 2020Selected FinancialHighlights

($ in millions,except shares and per share data)

Three Months ended June 30,

2020

2019

Revenue

$23.5

$25.5

Cost of Revenue

$21.3

$16.2

GrossProfit

$2.2

$9.3

Gross Margin

9.2%

36.4%

Net (Loss) Income

$(1.7)

$5.0

Basic and Diluted Weighted Average Shares

79.1

79.1

EPS (in $)

$(0.02)

$0.06

Balance Sheet Highlights

($ in millions,except for book value per share)

6/30/2020

12/31/2019

Cash and Cash Equivalents

$3.4

$10.1

Total Current Assets

$165.6

$64.3

Total Assets

$557.4

$404.1

Total Current Liabilities

$183.1

$88.8

Long-term bank loans,non-current portion

$214.4

$160.2

Total Liabilities

$397.5

$249.1

Shareholders' Equity

$160.0

$155.1

Total Liabilities and Shareholders' Equity

$557.4

$404.1

Book Value Per Share (in $)

$2.02

$1.96

Consolidated Financial and Operating Review

Revenue

Revenue for the three months ended June 30,2020 was $23.5 million,a decrease of $2.0 million,or 7.9%,from $25.5 million for the same period in 2019. Sales volume increased by 41.0% to21.8 million KG in the three months ended June 30,2020 from 15.4 million KG in the same period of 2019.The decrease in revenue was primarily attributable to the different sales mix and the decrease in the average unit sale price,despite the increase in sales volume due tomore vessels in operations.Average unit sale price decreased 34.5% in the three months ended June 30,2020 as compared to the three months ended June 30,2019.

For the six months ended June 30,the Company's revenues were $40.8 million compared to $43.9 million in the first half of 2019,a decrease of $3.1 million,or 7.1%. Sales volumes in the six months ended June 30,2020 increased by 46.0% to 35.3 millionKG from 24.2 million KGin the six months ended June 30,2019. Average unit sale price decreased by 36.3% in the six months ended June 30,2020 as compared to the six months ended June 30,2019. The decreaseis due to the same reasons described above.

Gross Margin

The Company's gross margin was 9.2% for the three months ended June 30,compared to 36.4% in the prior year period. The decrease in gross margin for the three months ended June 30,2020as compared to the same period of 2019 is due tothe decrease in average unit sale price by 34.5% while the cost per unit had a slight decrease.A key species of the Company's sales mix was Indian Ocean squid whose market price was on the low side,and the market price of frozen seafood was affected due to the COVID-19 pandemic,which together led to a decrease in the average unit sale price of sales mix.

For the six months ended June 30,gross margin decreasedto19.4%from 30.4% in the same period of 2019.The decrease in gross margin for the six months ended June 30,2020 is due to the same reasons described above.

Selling Expenses

For the three months ended June 30,selling expenses were $1.0 million compared to $0.5million in the prior year period. The increase was primarily due to theincrease in insurance,storage fees and other miscellaneous selling expenses.

For the six months ended June 30,selling expenses were $2.0 million compared to $1.2million in the same period of 2019.The increase is due to the same reasons described above.

General & Administrative Expenses

For the three months ended June 30,general and administrative expenses were $1.6 million,compared to $2.1 million in the prior year period,a decrease of 25.1%. The decrease was primarily due to the decrease in compensation and related benefits and other general and administrative expenses,the increase in bad debt recovery and no impairment loss recorded for the three months ended June 30,2020 as compared to an impairment loss of $0.2 million for the three months ended June 30,general and administrative expenses were $3.6 million,compared to $6.9 million in the prior year period,a decrease of 48.6%.The decrease was primarily due to the decrease in depreciation of non-operating vessels,compensation and related benefits,other general and administrative expenses and no impairment loss recorded for the six months ended June 30,2020 as compared to an impairment loss $2.5 million for the six months ended June 30,2019.

Net(Loss) Income

Net loss for the three months ended June 30,2020 was $1.7million,compared to net income of $5.0million in the same period of 2019.

Net income for the sixmonths ended June 30,2020 was6.8 million,compared to net income of $3.1million in the same period of 2019.

Net(Loss) IncomeAttributable to Owners of the Company

Net lossattributable to owners of the Companyfor the three months ended June 30,2020 was $1.6million,or $(0.02)per basic and diluted share,compared to net incomeattributable to owners of the Company of $4.6million,or $0.06per basic and diluted share,in the same period of 2019.

Net income attributable to owners of the Companyfor the sixmonths ended June 30,2020 was $6.1million,or $0.08per basic and diluted share,compared to net income attributable to owners of the Company of $2.7million,or $0.03per basic and diluted share,in the same period of 2019.

Conference Call Details

Pingtanwill discuss the financial results for the secondquarter of 2020 during a conference call on Tuesday,August 18,2020– 8:30 a.m. ET.

The dial-in numbers are:

Live Participant Dial-in (Toll Free): +1(877)407-0310

Live Participant Dial-in (International): +1(201)493-6786

To listen to the live webcast,please go to http://www.ptmarine.com and click on the conference call link at the top of the page,or go to: https://78449.themediaframe.com/dataconf/productusers/pme/mediaframe/40260/indexl.html.This webcast will be archived and accessible through the Company's website for approximately 30 days following the call.

About Pingtan

Pingtan is a global fishing company engaging in ocean fishing through its subsidiary,Fujian Provincial Pingtan County Ocean Fishing Group Co.,Ltd.,or Pingtan Fishing.

Business Risks and Forward-Looking Statements

This press release may contain forward-looking statements that are subject to the safe harbors created under the Securities Act of 1933 and the Securities Exchange Act of 1934,as amended. Words such as "estimate," "project," "forecast," "plan," "believe," "may," "expect," "anticipate," "intend," "planned," "potential," "can," "expectation" and similar expressions,or the negative of those expressions,may identify forward-looking statements. Although forward-looking statements reflect the good faith judgment of our management,such statements can only be based on facts and factors currently known by us. Consequently,forward-looking statements are inherently subject to risks and uncertainties and actual results and outcomes may differ materially from the results and outcomes discussed in or anticipated by the forward-looking statements. Risks include anticipated growth and growth strategies; need for additional capital and the availability of financing; locating or re-locating vessels,in foreign waters and related license requirements; our ability to successfully manage relationships with customers,distributors and other important relationships; actions taken by government regulators,such as the Indonesian moratorium; technological changes; competition; demand for our products and services; the deterioration of general economic conditions,whether internationally,nationally or in the local markets in which we operate; the impact of the current coronavirus (COVID-19) pandemic on the Company's financial condition,business operations and liquidity; the impact of COVID-19 on our customers and distributors; legislative or regulatory changes that may adversely affect our business; operational,mechanical,climatic or other unanticipated issues that adversely affect the production capacity of the Company's fishing vessels and their ability to generate expected annual revenue and net income; and other risk factors contained in Pingtan's SEC filings available at www.sec.gov,including Pingtan's most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Readers are cautioned not to place undue reliance on any forward-looking statements,which speak only as of the date on which they are made. Pingtan undertakes no obligation to update or revise any forward-looking statements for any reason,except as required by law.

CONTACT:

LiMing Yung (Michael)

Chief Financial Officer

Pingtan Marine Enterprise Ltd.

Tel: +86 591 87271753

michaelyung@ptmarine.net

Maggie Li

Investor Relations Manager

Pingtan Marine Enterprise Ltd.

Tel: +86 591 8727 1753

mli@ptmarine.net

INVESTOR RELATIONS

PureRock Communications Limited

PTmarine@pure-rock.com

PINGTAN MARINE ENTERPRISE LTD. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

(IN U.S. DOLLARS)

FortheThreeMonthsEnded

June 30,

FortheSixMonthsEnded

June 30,

2020

2019

2020

2019

REVENUE

$

23,463,133

$

25,094

$

40,770,133

$

43,887,303

COST OF REVENUE

21,299,920

16,196,280

32,854,363

30,539,838

GROSS PROFIT

2,163,213

9,266,814

7,915,770

13,347,465

OPERATING EXPENSES:

Selling

1,046,519

535,276

1,948,170

1,245,205

General and administrative

795,332

1,365,250

2,065,475

4,960,640

General and administrative - depreciation

789,334

749,056

1,500,767

1,971,217

Subsidy

(564,095)

-

(8,338,088)

-

Loss on fixed assets disposal

-

166,152

-

166,152

Total Operating Expenses

2,067,090

2,815,734

(2,823,676)

8,343,214

INCOME FROM OPERATIONS

96,123

6,451,080

10,739,446

5,004,251

OTHER INCOME (EXPENSE):

Interest income

1,162,486

17,773

2,362,612

20,289

Interest expense

(2,936,529)

(1,598,082)

(5,835,425)

(2,127,247)

Foreign currency transaction gain (loss)

21,718

(139,715)

(344,691)

(49,631)

Gain from cost method investment

132,753

347,651

132,651

Loss on equity method investment

(143,015)

(271,227)

(268,543)

(381,843)

Other income (expense)

5,084

226,487

(30,456)

252,158

Total Other Expense,net

(1,757,503)

(1,417,113)

(3,983,750)

(1,938,623)

(LOSS) INCOME BEFORE INCOME TAXES

(1,661,380)

5,033,967

6,755,696

3,628

INCOME TAXES

-

-

-

-

NET (LOSS) INCOME

$

(1,380)

$

5,967

$

6,696

$

3,628

LESS: NET (LOSS) INCOME ATTRIBUTABLE TO THE NON-CONTROLLING INTEREST

(85,370)

454,923

667,016

373,823

NET (LOSS) INCOME ATTRIBUTABLE TO OWNERS OF THE COMPANY

$

(1,576,010)

$

4,579,044

$

6,088,680

$

2,691,805

COMPREHENSIVE INCOME (LOSS):

NET (LOSS) INCOME

(1,628

OTHER COMPREHENSIVE (LOSS) INCOME

Unrealized foreign currency translation gain (loss)

(166,176)

(3,066,793)

(1,615)

(167,444)

COMPREHENSIVE (LOSS) INCOME

$

(1,827,556)

$

1,967,174

$

4,901,081

$

2,898,184

LESS: COMPREHENSIVE (LOSS) INCOMEATTRIBUTABLE TO

THE NON-CONTROLLING INTEREST

(98,734)

209,407

518,480

334,384

COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO

OWNERS OF THE COMPANY

$

(1,728,822)

$

1,767

$

4,382,601

$

2,563,800

NET(LOSS)INCOME PER ORDINARY SHARE ATTRIBUTABLE TOOWNERS OF THE COMPANY

Basic and diluted

$

(0.02)

$

0.06

$

0.08

$

0.03

WEIGHTED AVERAGE ORDINARY SHARES OUTSTANDING:

Basic and diluted

79,055,053

79,053

PINGTAN MARINE ENTERPRISE LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(IN U.S. DOLLARS)

June30,

December31,

2020

2019

(Unaudited)

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$

3,405,523

$

10,092,205

Restricted cash

10,608

-

Accounts receivable,net of allowance for doubtful accounts

12,624,501

9,273,446

Due from related parties

81,252,639

12,477,777

Inventories,net of reserve for inventories

56,605,991

30,527,752

Prepaid expenses

750,349

1,354,129

Other receivables

219,325

613,384

Total Current Assets

165,628,936

64,693

OTHER ASSETS:

Cost method investment

2,966,311

3,010,235

Equity method investment

27,249,283

27,923,464

Prepayment for long-term assets

63,950,903

49,040,338

Right-of-use asset

253,628

438,254

Property,plant and equipment,net

297,397,430

259,377,729

Total Other Assets

391,817,555

339,790,020

Total Assets

$

557,446,491

$

404,128,713

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:

Accounts payable

$

17,363,276

$

7,951,766

Accounts payable - related parties

2,366,568

1,707,217

Short-term bank loans

90,684,370

10,034,116

Long-term bank loans - current portion

60,880,006

57,122,789

Accrued liabilities and other payables

11,704

11,428,018

Lease liability- current liability

222,567

375,922

Due to related parties

18,354

168,328

Total Current Liabilities

183,114,845

88,788,156

OTHER LIABILITIES:

Lease liability

-

32,203

Long-term bank loans - non-current portion

214,352,709

160,230,498

Total Liabilities

397,467,554

249,050,857

COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS' EQUITY:

Equity attributable to owners of the company:

Ordinary shares ($0.001 par value; 125,000,000 shares

authorized; 79,053 shares issued and outstanding at

June 30,2020 and December 31,2019)

79,055

79,055

Additional paid-in capital

81,682,599

81,599

Retained earnings

60,375,134

54,286,454

Statutory reserve

15,748,751

15,751

Accumulated other comprehensive loss

(17,786,987)

(16,080,908)

Total equity attributable to owners of the company

140,098,552

135,715,951

Non-controlling interest

19,385

19,361,905

Total Shareholders' Equity

159,978,937

155,077,856

Total Liabilities and Shareholders' Equity

$

557,713

PINGTAN MARINE ENTERPRISE LTD. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

(IN U.S. DOLLARS)

FortheSixMonthsEnded

June 30,

2020

2019

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income

$

6,628

Adjustments to reconcile net income from operations to net cash provided by operating activities:

Depreciation

6,672,732

5,071,259

Increase in allowance for doubtful accounts

57,205

-

Increase (decrease) in reserve for inventories

2,619

(358,040)

Loss on equity method investment

268,543

381,843

Impairment loss of fishing vessels

-

2,475,442

Changes in operating assets and liabilities:

Accounts receivable

(3,567,172)

(2,452,909)

Inventories

(28,703,844)

(2,426,497)

Prepaid expenses

587,974

2,569

Other receivables

387,716

(375,533)

Other receivables - related party

-

(20,230)

Accounts payable

9,592,030

1,973,993

Accounts payable - related parties

688,894

(2,896,036)

Advance from customers

(824,813)

-

Accrued liabilities and other payables

1,145,268

2,572,773

Accrued liabilities and other payables - related party

-

(1,290)

Due to related parties

(323,577)

1,221,527

NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES

(5,262,729)

8,234,499

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchase of property,plant and equipment

(85,240,006)

(59,984,190)

Proceeds from government grants for fishing vessels construction

20,893,357

3,623,171

Deposit for purchase of land use right

-

(7,373,762)

NET CASH USED IN INVESTING ACTIVITIES

(64,346,649)

(63,734,781)

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds of short-term bank loans

81,591

-

Proceeds from long-term bank loans

76,076,167

100,283,152

Repayments of long-term bank loans

(14,611,982)

(4,719,207)

Due to related parties

-

(10,220,387)

Due from related parties

-

(28,678,209)

Advance to related party-HL

(69,423,710)

NET CASH PROVIDED BY FINANCING ACTIVITIES

73,384,066

56,665,349

EFFECT OF EXCHANGE RATE ON CASH,CASH EQUIVALENTS AND RESTRICTED CASH

309,238

41,357

NET INCREASE IN CASH,CASH EQUIVALENTS AND RESTRICTED CASH

4,083,926

1,206,424

CASH,CASH EQUIVALENTS AND RESTRICTED CASH - beginning of period

10,205

1,855

CASH,CASH EQUIVALENTS AND RESTRICTED - end of period

$

14,176,131

$

3,173,279

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:

Cash paid for:

Interest

$

6,750,422

$

2,095,373

Income taxes

$

-

$

-

RECONCILIATION TO AMOUNTS ON CONSOLIDATED BALANCE SHEETS:

Cash and cash equivalents

3,523

3,279

Restricted cash

10,608

-

TOTAL CASH,CASH EQUIVALENTS AND RESTRICTED CASH

$

14,279

NON-CASH INVESTING AND FINANCING ACTIVITIES:

Acquisition of property and equipment by decreasing prepayment for long-term assets

$

(15,731,909)

$

-

Property and equipment acquired on credit as payable

$

-

24,435,995