Pingtan Marine Enterprise Reports Financial Results for the Second Quarter and Six Months Ended June 30, 2018

Company to Hold Conference Call on Friday,August 10,2018,at 8:30 AM ET

FUZHOU,China,Aug. 10,2018 -- 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 its unaudited financial results for the second quarter and six months ended June 30,2018.

The Company's recent notable events are as follows:

May 31,2018: The Company announced that Chairman and Chief Executive Officer,Mr. Xinrong Zhuo has advised the Company that he intends to continue to purchase ordinary shares of Pingtan from time to time,subject to market conditions.

July 17,2018: The Company announced a quarterly cash dividend of $0.01 per ordinary share outstanding,which will be paid on or about August 15,2018 to shareholders of record on July 31,2018. This marked the fifteenth consecutive quarterly dividend paid by the Company.

Management Comments

Mr. Xinrong Zhuo,Chairman and CEO of the Company,commented,"In the second quarter 2018,our overall financial results declined compared to the same period last year. On the one hand,five of our large-scale vessels were sent to shipyard for maintenance; on the other hand,both the sale volume and the unit selling price dropped for this quarter,especially the prices of species with high added value,which were significantly lower than last year. Once the vessels that were sent to shipyard complete maintenance and are put into operation,which should be by the end of this year,along with the addition of the anticipated operation of the 27 rebuilt new vessels,the Company expects that there will be a significant increase in both fishing capacity and sale volume."

Factors AffectingPingtan'sResults of Operation – TheIndonesian government's moratorium on fishing licenses renewals:

As previously disclosed in our Forms 10-K and 10-Q filed since 2015,in early December 2014,the Indonesian government introduced a six-month moratorium on issuing new fishing licenses and renewals so that the country's Ministry of Maritime Affairs and Fisheries ("MMAF") could combat illegal fishing and rectify ocean fishing order. In February 2015,Pingtan ceased all fishing operations in Indonesia. During the moratorium,the Company was informed that fishing licenses of four vessels operated through PT. Avona,one of the local companies through which Pingtan conducts business in Indonesia,and the fishery business license of PT. Dwikarya,the other local company through which the Company conducts business in Indonesia,were revoked. As a result and because license renewal was prohibited due to the general moratorium,all local fishing licenses of the Company's vessels in Indonesia are presently inactive. The MMAF has not yet restored license issuing or renewal process for vessels built abroad.

In November 2015,the Indonesian government announced that the moratorium had concluded. As the MMAF has not implemented new fishing policies and resume the license renewal process,the Company does not know when exactly licensing and renewal will start. Since the Company historically derived a majority of its revenue from this area,this ban has caused a significant drop in production.

In September 2017,the Company was informed that the fishing licenses of 13 vessels deployed to the Indo-Pacific waters were suspended and the vessels were docked in the port by the Ministry of Agriculture and Fisheries ("MAF") of the Democratic Republic of Timor-Leste. The MAF alleged and investigated whether false statements were made during the licensing process and the vessels were simultaneously registered in Indonesia. The Company disputed these allegations and the government of Timor-Leste eventually agreed to release these vessels as no evidence was presented to support such allegations. The 13 vessels have returned to China for regular maintenance.

As of June 30,2018,among the Company's 140 vessels,12 are located in the Bay of Bengal in India; 6 are located in international waters; 5 vessels (including 1 refrigerated transport vessel) are licensed to operate in international waters but returned to China for maintenance; 13 have returned to China from the Democratic Republic of Timor-Leste due to the reason described above; and 27 vessels are in the modification and rebuilding project. The remaining 77 vessels are licensed by the MOA to operate in the Arafura Sea in Indonesia. The vessels in Indonesian waters,however,are not in operation because the licenses are currently inactive due to either the moratorium discussed above,the revocation of the fishery business license of the local entity through which the vessels operate,or,with respect to four vessels,the revocation of the local fishing licenses.

Second Quarter 2018 Financial Highlights (all results are compared to prior year period)

Revenue was $13.6 million,gross profit was $7.0 million and gross margin was 51.1%,compared to revenue of $35.7 million,gross profit of $12.3 million and gross margin of 34.5%.

Net income attributable to owners of the Company was $2.9 million,or $0.04 per basic and diluted share,compared to net income attributable to owners of the Company of $9.0 million,or $0.11 per basic and diluted share.

Second Quarter 2018 Selected Financial Highlights

($ in millions,except per share data)

Three Months ended June 30,

2018

2017

(Unaudited)

(Unaudited)

Revenue

$13.6

$35.7

Cost of Revenue

$6.7

$23.4

Gross Profit

$7.0

$12.3

Gross Margin

51.1%

34.5%

Net income attributable to owners of the Company

$2.9

$9.0

Basic and Diluted Weighted Average Shares Outstanding

79.1

79.1

EPS (in $)

$0.04

$0.11

Balance Sheet Highlights

($ in millions,except per share data)

6/30/2018

12/31/2017

(Unaudited)

(Audited)

Cash and Cash Equivalents

$1.5

$2.0

Total Current Assets

$18.9

$20.8

Total Assets

$206.7

$201.1

Total Current Liabilities

$44.5

$36.4

Total Long-term Debt,net of current portion

$14.1

$17.2

Total Liabilities

$58.5

$53.6

Shareholders' Equity

$148.2

$147.5

Total Liabilities and Shareholders' Equity

$206.7

$201.1

Book Value Per Share (in $)

$1.87

$1.87

Consolidated Financial and Operating Review

Revenues

Revenues for the three months ended June 30,2018 were $13.6 million and decreased 61.9% from $35.7 million of the same period in 2017. The decrease was mainly attributable to sales volume decrease of 30.2%,as well as the average unit sale price decrease of 45.2% for the three months ended June 30,2018 as compared to the three months ended June 30,2017.

For the six months ended June 30,the Company's revenues were $24.5 million compared to $41.4 million in the first half of 2017. The decrease was primarily due to a decrease in sales volume because fewer vessels are under operation,as well as lower average unit sale price due to the different sales mix.

Gross Margin

The Company's gross margin was 51.1% for the three months ended June 30,compared to 34.5 % in the prior-year period. The significant increase was primarily attributable to the decrease in the unit production cost of fish.

For the six months ended June 30,gross margin increased to 51.3% from 32.8% in the same period of 2017. The increase was primarily due to the same reasons describedabove.

Selling Expenses

Selling expenses were $0.4 million for the three months ended June 30,compared to $0.2 million in the prior-year period.

The increase was due to increase in shipping and handling fees as a result of an increased number of deliveries from Customs to warehouse,and the storage fees occurred during the processing of products to be sold to JD.com compared to prior year period.

For the six months ended June 30,selling expenses were $0.9 million compared to $0.6 million in the same period of 2017. The increase was primarily due to the same reasons describedabove.

General & Administrative Expenses

For the three months ended June 30,general and administrative expenseswere $3.0 million,compared to $2.4 million in the prior-year period. The increase was due to an increase in professional fees,compensation and related benefits and other general and administrative expenses,offset by a decrease in travel and entertainment expense and recorded bad debt recovery as compared to bad debt expense in the prior year period.

For the six months ended June 30,general and administrative expenses were $6.1 million compared to $4.7 million in the same period of 2017. The increase was primarily due to the same reasons describedabove.

NetIncome

Net income for the three months ended June 30,2018 was $3.3million compared to net income of $9.8million in the same period of 2017.

For the six months ended June 30,net income was $4.3 million,compared to $20.7 million in prior year period.

Net Income Attributable to Owners of the Company

For the three months ended June 30,net income attributable to owners of the Companywas $2.9 million,compared to net income attributable to owners of the Companyof $9.0million,or $0.11 per basic and diluted share,in the same period of 2017.The decrease was primarily due to the factors describedabove.

For the six months ended June 30,net income attributable to owners of the Companywas $3.8 million,or $0.05 per basic and diluted share,compared to net income attributable to owners of the Companyof $18.9 million,or $0.24 per basic and diluted share,in the same period of 2017.

Conference Call Details

Pingtan also announced that it will discuss financial results in a conference call on Friday,at 8:30 AM 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: http://ptmarine.equisolvewebcast.com/q2-2018. 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. 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 the ability to successfully finish the modification and rebuilding of the 27 vessels,complete the maintenance of the large-scale vessels and begin fishing operations as expected; unanticipated delays in the modification,rebuilding and maintenance process; need for additional capital and the availability of financing; our ability to successfully manage relationships with customers,distributors and other important relationships; 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; legislative or regulatory changes that may adversely affect our business and operations,including suspension or revocation of licenses; 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; inability to sell products to the end-customer at the levels anticipated; 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.

CONTACT:

Roy Yu

Chief Financial Officer

Pingtan Marine Enterprise Ltd.

Tel: +86 591 87271753

ryu@ptmarine.net

Maggie Li

Investor Relations Manager

Pingtan Marine Enterprise Ltd.

Tel: +86 591 8727 1753

mli@ptmarine.net

INVESTOR RELATIONS COUNSEL:

The Equity Group Inc.

Adam Prior,Senior Vice President

Tel: (212) 836-9606

aprior@equityny.com

Katherine Yao,Senior Associate

Tel: +86 10 5661 7012

kyao@equityny.com

PINGTAN MARINE ENTERPRISE LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (UNAUDITED)

(IN U.S. DOLLARS)

FortheThreeMonths Ended

June 30,

For the Six Months Ended

June 30,

2018

2017

2018

2017

REVENUE

$

13,606,170

$

35,695,881

$

24,490,438

$

41,357,021

COST OF REVENUE

6,650,634

23,391,710

11,934,350

27,810,560

GROSS PROFIT

6,955,536

12,304,171

12,556,088

13,546,461

OPERATING EXPENSES:

Selling

380,350

178,575

861,801

567,293

General and administrative

1,521,671

1,259,793

3,081,268

2,347,665

General and administrative - depreciation

1,479,214

1,184,586

3,045,233

2,363,543

Grant income

-

(30,365)

(1,052,112)

(12,749,640)

Loss on fixed assets disposal

(2,705)

-

2,178,750

-

Total Operating Expenses

3,378,530

2,592,589

8,114,940

(7,471,139)

INCOME FROM OPERATIONS

3,577,006

9,711,582

4,441,148

21,017,600

OTHER INCOME (EXPENSE):

Interest income

14,768

4,043

34,532

151,426

Interest expense

(195,309)

(648,333)

(657,568)

(1,351,409)

Foreign currency transaction (loss) gain

(407,777)

446,431

166,215

544,882

Gain from cost method investment

397,420

314,818

397,818

Loss on equity method investment

(50,164)

(13,915)

(61,115)

(20,167)

Other expense

(685)

(3,812)

(685)

(3,812)

Total Other Income (Expense),net

(241,747)

99,232

(121,201)

(364,262)

INCOME BEFORE INCOME TAXES

3,335,259

9,814

4,319,947

20,653,338

INCOME TAXES

-

-

-

-

NET INCOME

$

3,259

$

9,814

$

4,947

$

20,338

LESS: NET INCOME ATTRIBUTABLE TO THE NON-CONTROLLING INTEREST

389,775

853,403

502,170

1,775,773

NET INCOME ATTRIBUTABLE TO OWNERS OF THE COMPANY

$

2,945,484

$

8,957,411

$

3,817,777

$

18,877,565

COMPREHENSIVE (LOSS) INCOME:

NET INCOME

3,338

OTHER COMPREHENSIVE (LOSS) INCOME

Unrealized foreign currency translation (loss)gain

(7,654,890)

2,041,844

(2,050,982)

2,682,892

COMPREHENSIVE (LOSS) INCOME

$

(4,631)

$

11,852,658

$

2,268,965

$

23,336,230

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

(222,538)

1,014,545

338,071

1,987,571

COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO OWNERS OF THE COMPANY

$

(4,097,093)

$

10,838,113

$

1,930,894

$

21,348,659

NET INCOME PER ORDINARY SHARE ATTRIBUTABLE TO OWNERS OF THE COMPANY

Basic and diluted

$

0.04

$

0.11

$

0.05

$

0.24

WEIGHTED AVERAGE ORDINARY SHARES OUTSTANDING:

Basic and diluted

79,055,053

79,053

PINGTAN MARINE ENTERPRISE LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(IN U.S. DOLLARS)

June 30,

2018

December31,

2017

ASSETS

(Unaudited)

CURRENT ASSETS:

Cash

$

1,467,453

$

2,005,540

Restricted cash

-

1,821,187

Accounts receivable,net of allowance for doubtful accounts

10,442,252

13,012,671

Inventories,net of reserve for inventories

6,051,576

3,560,261

Prepaid expenses

844,367

110,536

Other receivables

110,909

273,151

Total Current Assets

18,916,557

20,783,346

OTHER ASSETS:

Cost method investment

3,173,836

3,213,859

Equity method investment

30,082,519

30,466

Prepayment for long-term assets

-

11,057

Property,plant and equipment,net

154,561,662

135,042,467

Total Other Assets

187,818,017

180,354,849

Total Assets

$

206,734,574

$

201,138,195

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:

Accounts payable

$

15,921

$

4,301,146

Accounts payable - related parties

1,248,419

1,803,698

Short-term bank loans

6,043,801

14,600,978

Long-term bank loans - current portion

5,894,266

5,968,596

Accrued liabilities and other payables

4,312,122

5,616

Due to related parties

11,465,468

4,386,901

Total Current Liabilities

44,485,997

36,415,935

OTHER LIABILITIES:

Long-term bank loans - non-current portion

14,557

17,217,104

Total Liabilities

58,541,554

53,633,039

COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS' EQUITY:

Equity attributable to owners of the company:

Ordinary shares ($0.001 par value; 225,000,000 shares authorized; 79,053 shares issued and outstanding at June 30,2018 and December 31,2017)

79,055

79,055

Additional paid-in capital

81,599

81,599

Retained earnings

42,585,865

40,349,189

Statutory reserve

12,978,343

12,343

Accumulated other comprehensive loss

(7,618,772)

(5,731,889)

Total equity attributable to owners of the company

129,707,090

129,297

Non-controlling interest

18,930

18,147,859

Total Shareholders' Equity

148,193,020

147,505,156

Total Liabilities and Shareholders' Equity

$

206,195

PINGTAN MARINE ENTERPRISE LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(IN U.S. DOLLARS)

FortheSixMonthsEnded

June 30,

2018

2017

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income

$

4,338

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

Depreciation

4,762,731

4,292,368

(Decrease) increase in allowance for doubtful accounts

(40,412)

202,678

Increase in reserve for inventories

59,293

-

Loss on equity method investment

61,115

20,167

Loss on disposal of fixed assets

2,750

3,812

Changes in operating assets and liabilities:

Accounts receivable

2,542,265

(1,233,136)

Inventories

(2,694,938)

4,030,297

Advances to suppliers

-

1,584,068

Prepaid expenses

(763,537)

8,172

Prepaid expenses - related parties

-

(583,668)

Other receivables

165,932

29,995,368

Other receivables - related party

-

927,098

Accounts payable

(1,260,101)

(23,390)

Accounts payable - related parties

(553,347)

5,951,364

Accrued liabilities and other payables

(1,013,530)

1,360,541

Due to related parties

4,075,326

(12,754,441)

NET CASH PROVIDED BY OPERATING ACTIVITIES

11,839,494

54,434,636

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchase of property,plant and equipment

(6,157,014)

(38,750,974)

Proceeds from government grants for fishing vessels construction

2,286,575

2,911,335

Payments for equity method investment

-

(291,134)

NET CASH USED IN INVESTING ACTIVITIES

(3,870,439)

(36,130,773)

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from short-term bank loans

-

8,500,000

Repayments of short-term bank loans

(8,000)

(7,921,692)

Repayments of long-term bank loans

(3,060,696)

(8,632,109)

Advances from related parties

2,991,809

2,032,902

Payments made for dividend

(1,581,101)

(1,101)

NET CASH USED IN FINANCING ACTIVITIES

(10,149,988)

(7,602,000)

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

(178,341)

243,557

NET (DECREASE) INCREASE IN CASH,CASH EQUIVALENTS AND RESTRICTED CASH

(2,359,274)

10,420

CASH,CASH EQUIVALENTS AND RESTRICTED CASH - beginning of period

3,826,727

3,732,318

CASH,CASH EQUIVALENTS AND RESTRICTED - end of period

$

1,453

$

14,677,738

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:

Cash paid for:

Interest

$

423,528

$

1,412,542

Income taxes

$

-

$

-

RECONCILIATION TO AMOUNTS ON CONSOLIDATED BALANCE SHEETS:

Cash and cash equivalents

1,453

11,456

Restricted cash

-

3,262,282

TOTAL CASH,CASH EQUIVALENTS AND RESTRICTED CASH

$

1,738

NON-CASH INVESTING AND FINANCING ACTIVITIES:

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

$

11,873,429

$

1,018,967

Property and equipment acquired on credit as payable

$

12,879

1,516,341

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