Pingtan Marine Enterprise Reports Financial Results for the Third Quarter and Nine Months Ended September 30, 2021

FUZHOU,China,Nov. 17,2021 --Pingtan Marine Enterprise Ltd. (Nasdaq: PME) ("Pingtan" or the "Company"),a fishing company based in the People's Republic of China (PRC),today announced financial results for its thirdquarter and ninemonths ended September 30,2021.

ThirdQuarter 2021 Financial Highlights (Year-on-Year Comparisons)

Revenue was$36.1million,increased by 133.7%from$15.4million.

Gross loss was$4.1million compared to gross profit of $1.7million.

Net income was $2.9 million,compared to net income of$0.8million.

Net income attributable to ordinary shareholders of the Company was $2.6 million,or$0.03per basic and diluted share,compared to netincomeattributable to ordinary shareholders of the Company of $0.7million,or $0.01per basic and diluted share.

Management Comments

Mr. Xinrong Zhuo,Chairman and CEO of the Company,commented,"We are glad to report an over 130% increase in revenue and an over 110% increase in sales volume for the third quarter of 2021.However,with the number of global COVID-19 cases surpassing 250 million as of today,the recent COVID-19 outbreak in many regions of China had certain impact on Pingtan and the Company was faced with a situation of a growth in revenue and sales volume but a decline in gross margin. Although we remain on the sidelines of the follow-up market situation in 2021,we are confident in the sustainable development of China's fishery industry. We believe that for companies like Pingtan that focuses on pelagic fishery development,our advantages will become more apparent as the market gradually recovers."

Factors Affecting Pingtan's Results of Operations

COVID-19 pandemic

In December 2019,a novel strain of coronavirus (COVID-19) surfaced in the PRC. In reaction to this outbreak,many provinces and municipalities in the PRC activated the highest Level-I Response to the emergency public health incident. As a result,business activities in the PRC were significantly affected.

Emergency quarantine measures and travel restrictions have had a significant impact on many sectors across the PRC,which has also adversely affected the Company's operations. To reduce the impact on production and operation,the Company implemented certain safety measures to allow us to gradually resume work in mid-February. For the employees who left Fuzhou during the Spring Festival holiday and could not return to Fuzhou as scheduled,or those who could only resume work after satisfying the 14-day quarantine requirement,the Company provided paid leave. Since resuming work in mid-February,the Company have been using a shift system and adopted additional health and safety procedures to protect its employees. With these measures,the Company was able to maintain sales and operations from mid-February to mid-March. On March 23,2020,the Company resumed normal operations and is conducting business as usual with health and safety procedures to protect employees. Management is focused on mitigating the effects of COVID-19 on its business operations while protecting the employees' health and safety. 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 are in the best interests of its employees,customers,partners,suppliers and other stakeholders.

Some of the Company's customers are fish processing plants that export processed fish products to foreign countries. These customers reduced or postponed their purchases from the Company in the initial stage of the pandemic,but since the middle of the second quarter of 2020,they have adjusted their business strategies in relation to exportation or domestic sale. Because of the reduction or postponement,the Company's unit selling price decreased,its inventory levels increased,and accounts receivables were not timely paid as anticipated.

The COVID-19 pandemic continues to cause major disruptions to businesses and markets worldwide as the virus spreads or a resurgence in certain jurisdictions. The effects of the outbreak are still evolving,and the ultimate severity and duration of the pandemic and the implications on global economic conditions remains uncertain. Therefore,the extent of the impact of the pandemic on its 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 the Company's 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 the PRC,United States,or globally.

While the Companyanticipates its results of operations will continue to be impacted by this pandemic for the remainder of the year,the Company 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 September 30,2021,of the Company's 142vessels,100 were located in international waters,12 were located in the Bay of Bengal in India,13 were located in the PRC and17 were located in the Arafura Sea in Indonesia and not in operation. The Company has another 1 krill fishing vessel located in the shipbuilding factory in China that was suspended for construction and the Company has initiated negotiations with the shipbuilding company for the purpose of terminating the vessel construction contract.

Third Quarter 2021Selected FinancialHighlights

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

Three Months endedSeptember30,

2021

2020

Revenue

$36.1

$15.4

Cost of Revenue

$40.2

$13.8

Gross Profit

$(4.1)

$1.7

Gross Margin

(11.3) %

10.7%

Net Income (Loss)

$2.9

$0.8

Basic Weighted Average SharesOutstanding

86.4

79.1

Diluted Weighted Average Shares Outstanding

86.8

79.1

Basic and Diluted EPS (in $)

$0.03

$0.01

Balance Sheet Highlights

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

9/30/2021

12/31/2020

Cash and Cash Equivalents

$15.8

$0.7

Total Current Assets

$125.6

$114.2

Total Assets

$563.0

$463.5

Total Current Liabilities

$227.8

$133.4

Long-term bank loans,non-current portion

$250.1

$245.1

Total Liabilities

$478.1

$378.5

Shareholders' Equity

$85.0

$85.0

Total Liabilities and Shareholders' Equity

$563.0

$463.5

Consolidated Financial and Operating Review

Revenue& Sales volume

Revenue for the three months ended September30,2021was $36.1million,an increaseof $20,655,591,or133.7%,from $15.4million for the same period in 2020. Sales volume increased by 110.1% to30.9million KG in the three months ended September30,2021from 14.7million KG in the same period of 2020.Average unit sale price increased 11.4% in the three months ended September30,2021as compared to the three months ended September30,2020.

For the nine months ended September30,the Company's revenues were $101.3 million compared to $56.2 million in the nine months of 2020,an increase of $45,057,751,or 80.1%. Sales volumes increased by 43.7% to 71.8 million KG in the nine months ended September 30,from 50 million KG in the same period of 2020. Average unit sale price increased25.9% in the nine months ended September 30,2021as compared to the nine months ended September 30,2020.

For the three and ninemonths ended September 30,the increase in revenue was primarily attributable to the different sales mix,average unit sale price increased,and increase in sales volume as more vessels were in operation.

Gross Margin

The Company's gross margin was (11.3)% for the three months ended September30,compared to gross margin of 10.7% in the prior year period. The decrease was due to the increase in unit production cost of fish.

For the ninemonths ended September 30,gross margin was (5.2) %,compared to gross margin of 17.0% in the same period of 2020.The decrease in gross margin for the nine months ended September 30,2021 was primarily due to more vessels were put into operation,which drove up refueling costs and other related costs of revenue,and the purchase cost of fishery products.

Selling Expenses

For the three months ended September30,selling expenses were $2.0million compared to $1.3million in the prior year period. The increase was primarily due to theincrease in insurance,storage fees and customs clearance charge,shipping and handling fees,adverting and other miscellaneous selling expense.

For the ninemonths ended September 30,selling expenses were $5.1million compared to $3.3million in the same period of 2020.The increase was due to theincrease in insurance,and adverting,partially offset by the decrease in Shipping and handling fees and other miscellaneous selling expense.

General & Administrative Expenses

For the three months ended September 30,general and administrative expenses were $2.2 million,compared to $1.6 million in the prior year period. The increase was mainly due to the increase in depreciation,professional fees and rent and related administrative service charge.

For the ninemonths ended September 30,general and administrative expenses were $6.1million,compared to $5.2million in the prior year period. The increase was mainly due to increase in professional fees,bad debt expense,travel and entertainment and other general and administrative expenses,partially offset by the decrease in depreciation.

NetIncome(Loss)

Net Income for the three months ended September30,2021was $2.9million,compared to netincome of $0.8million in the same period of 2020.

Net loss for the nine months ended September30,2021was $9.7 million,compared to net income of $7.5million in the same period of 2020.

Net Income (Loss)Attributable to Ordinary Shareholders of the Company

Net income attributable to ordinary shareholders of the Companyfor the three months ended September30,2021was $2.6million,or $0.03per basic and diluted share,compared to net incomeattributable to owners of the Company of $0.7million,or $0.01per basic and diluted share,in the same period of 2020.

Net loss attributable to ordinary shareholders of the Companyfor the ninemonths ended September30,2021was $9.5million,or $(0.11)per basic and diluted share,compared to net income attributable to owners of the Company of $6.8million,or $0.09per basic and diluted share,in the same period of 2020.

About Pingtan

Pingtan is a 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; 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,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.

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

September 30,

FortheNineMonthsEnded

September 30,

2021

2020

2021

2020

REVENUE

$

36,103,674

$

15,448,083

$

101,275,967

$

56,218,216

COST OF REVENUE

40,165,352

13,787,521

106,530,518

46,641,884

GROSS (LOSS) PROFIT

(4,061,678)

1,660,562

(5,254,551)

9,576,332

OPERATING EXPENSES (INCOME):

Selling

1,976,187

1,333,927

5,112,982

3,282,097

General and administrative

1,172,102

809,988

4,904,109

2,875,463

General and administrative - depreciation

1,001,961

773,812

1,146,815

2,274,579

Subsidy

(16,284,032)

(4,440,731)

(19,887,829)

(12,778,819)

Impairment loss

495,857

-

1,471,223

-

Total Operating (INCOME)

(11,637,925)

(1,523,004)

(7,252,700)

(4,346,680)

INCOME FROM OPERATIONS

7,247

3,183,566

1,998,149

13,923,012

OTHER INCOME (EXPENSE):

Interest income

23,276

973,265

72,729

3,335,877

Interest (expense)

(4,055,798)

(4,036,524)

(11,720,712)

(9,871,949)

Foreign currency transaction gain (loss)

(365,513)

747,678

184,148

402,987

Gain from cost method investment

38

764

605,216

133,517

(Loss) on equity method investment

(308,921)

(82,586)

(765,101)

(351,129)

Other income (expense)

(5)

(4,468)

(76,861)

(34,924)

Total Other (Expense),net

(4,706,923)

(2,401,871)

(11,700,581)

(6,385,621)

INCOME (LOSS) BEFORE INCOME TAXES

2,869,324

781,695

(9,702,432)

7,537,391

INCOME TAXES

-

-

-

-

NET INCOME (LOSS)

$

2,324

$

781,695

$

(9,432)

$

7,391

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

284,700

92,511

(546,791)

759,527

NET INCOME (LOSS) ATTRIBUTABLE TO ORDINARY SHAREHOLDERS OF THE COMPANY BEFORE PREFERRED DIVIDENDS

2,584,624

689,184

(9,155,641)

6,777,864

LESS: PREFERRED SHARE DIVIDENDS

-

-

(300,000)

-

NET INCOME (LOSS) ATTRIBUTABLE TO ORDINARY SHAREHOLDERS OF THE COMPANY

$

2,624

$

689,184

$

(9,455,641)

$

6,864

COMPREHENSIVE INCOME (LOSS):

NET INCOME (LOSS)

2,391

OTHER COMPREHENSIVE (LOSS) INCOME

Unrealized foreign currency translation gain

4,111,818

5,836

3,083,162

3,846,221

COMPREHENSIVE INCOME (LOSS)

6,981,142

6,482,531

(6,619,270)

11,383,612

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

613,410

556,889

(282,897)

1,075,369

COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO ORDINARY SHAREHOLDERS OF THE COMPANY

$

6,367,732

$

5,925,642

$

(6,336,373)

$

10,308,243

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

Basic

$

0.03

$

0.01

$

(0.11)

$

0.09

Diluted

$

0.03

$

0.01

$

(0.11)

$

0.09

WEIGHTED AVERAGE ORDINARY SHARES OUTSTANDING:

Basic

86,389,548

79,071,363

83,854,623

79,060,490

Diluted

86,797,148

79,490

PINGTAN MARINE ENTERPRISE LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(IN U.S. DOLLARS)

September30,

December31,

2021

2020

(Unaudited)

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$

15,756,293

$

691,933

Restricted cash

13,018,350

9,912,666

Accounts receivable,net

21,823,247

31,946,561

Inventories,net

72,839,826

67,611,136

Prepaid expenses

1,517,569

170,706

Prepaid expenses - related party

-

2,015,357

Other receivables

606,298

1,901,094

Total Current Assets

125,561,583

114,249,453

OTHER ASSETS:

Cost method investment

3,238,042

3,440

Equity method investment

29,107,193

29,689,813

Prepayment for long-term assets

98,454,667

66,041

Right-of-use asset

559,296

64,220

Property,plant and equipment,net

306,123,374

250,011

Total Other Assets

437,572

349,210,525

Total Assets

$

563,044,155

$

463,459,978

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:

Accounts payable

$

38,929,872

$

18,792,983

Accounts payable - related parties

10,427,554

9,966,708

Short-term bank loans

55,509,298

52,414,596

Long-term bank loans - current portion

70,676,635

39,987,577

Accrued liabilities and other payables

20,914,632

12,151,633

Lease liability- current

398,909

32,349

Due to related parties

30,973,032

18,354

Total Current Liabilities

227,829,932

133,364,200

OTHER LIABILITIES:

Lease liability

128,036

-

Long-term bank loans - non-current portion

250,126,251

245,116,088

Total Liabilities

478,084,219

378,480,288

COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS' EQUITY:

Equity attributable to ordinary shareholders of the Company:

Preferred shares ($0.001 par value; 5,000,000 shares authorized; no shares issued and outstanding at September 30,2021

and December 31,2020)

-

-

Ordinary shares ($0.001 par value; 125,000 shares authorized; 85,940,965 and 79,302,428 shares issued and outstanding

at September 30,2021 and December 31,2020)

85,941

79,302

Additional paid-in capital

88,938,870

82,045,993

(Deficit)

(28,050,396)

(18,594,755)

Statutory reserve

15,712

15,712

Accumulated other comprehensive (loss)

(6,749,605)

(9,568,873)

Total equity attributable to ordinary shareholders of the Company

69,522

69,713,379

Non-controlling interest

14,983,414

15,266,311

Total Shareholders' Equity

84,959,936

84,979,690

Total Liabilities and Shareholders' Equity

$

563,978

PINGTAN MARINE ENTERPRISE LTD. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

(IN U.S. DOLLARS)

FortheNineMonths Ended

September 30,

2021

2020

CASH FLOWS FROM OPERATING ACTIVITIES:

Net (loss) income

$

(9,391

Adjustments to reconcile net income from operations to net cash provided by (used in) operating activities:

Depreciation

12,510,131

10,616,935

Bad debt expense

756,463

245,498

(Decrease) increasein inventory allowance

740,084

1,711,666

Loss on equity method investment

765,101

351,129

Common stock issuance for professional fee

-

25,974

Impairment loss for fishing vessels

1,223

-

Changes in operating assets and liabilities:

Accounts receivable

9,583,745

(5,191,192)

Inventories

(5,567,403)

(35,027,650)

Prepaid expenses

(1,350,006)

(432,033)

Prepaid expenses - related party

2,032,018

-

Other receivables

1,309,201

(328,396)

Accounts payable

20,065,745

(4,514)

Accounts payable - related parties

401,008

218,739

Accrued liabilities and other payables

8,070,980

1,553,556

Accrued liabilities and other payables - related party

29,507

-

Advance from customers

636,865

(619,235)

Due to related parties

77,476

140,210

NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES

71,368,706

(23,838,922)

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchase of property,plant and equipment

(32,038,302)

(93,357,444)

Prepayment made for long-term assets

(68,308)

-

Proceeds from government grants for fishing vessel construction

-

28,962,913

NET CASH USED IN INVESTING ACTIVITIES

(100,610)

(64,394,531)

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds of short-term bank loans

44,812,560

81,811,291

Repayments of short-term bank loans

(42,031,091)

(42,908,020)

Proceeds from long-term bank loans

78,177

104,640,414

Repayments of long-term bank loans

(44,683,935)

(46,325,253)

Proceeds from issuance of ordinary shares

4,351,243

Proceeds from issuance of series A preferred shares

3,698,273

-

Proceeds from related party

1,450,000

Repurchase of preferred shares

(1,000)

Loans issued to related parties

(160,480)

Repayments of loans issued to related parties

-

157,692,576

NET CASH PROVIDED BY FINANCING ACTIVITIES

44,867,227

94,840,528

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

2,525,721

935,670

NET INCREASE IN CASH,CASH EQUIVALENTS AND RESTRICTED CASH

18,170,044

7,542,745

CASH,CASH EQUIVALENTS AND RESTRICTED CASH - beginning of period

10,604,599

10,092,205

CASH,CASH EQUIVALENTS AND RESTRICTED - end of period

$

28,774,643

$

17,634,950

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:

Cash paid for:

Interest

$

13,936

$

11,012,593

Income taxes

$

-

$

-

RECONCILIATION TO AMOUNTS ON CONSOLIDATED BALANCE SHEETS:

Cash and cash equivalents

15,293

3,397,018

Restricted cash

13,350

14,237,932

TOTAL CASH,CASH EQUIVALENTS AND RESTRICTED CASH

$

28,950

NON-CASH INVESTING AND FINANCING ACTIVITIES:

Acquisition of property and equipment paid by related party on behalf

$

(32,302)

-

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

$

-

$

(20,592)

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