ALN reported strong 2Q10 results with top and bottom line figures beating consensus estimates. Revenue growth was largely driven by the increased sales of convenience foods (CF), which is in line with management's previously announced strategy to focus more on this segment. Major highlights during the quarter were the announced acquisition of Shandong Greenpia Foodstuff and approximately $10 million spent in 2Q10 to complete new frozen storage, bean production, and multi-purpose convenience food production lines which are expected to ramp up production capacity to drive growth in the CF segment.
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American Lorain is a fast growing leading producer of chestnuts and Chinese snack foods, currently trading at a 5 P/E with EPS of $0.55 (ttm) in a sector that trades at a 10-12 P/E. Upside is over 100% from current price levels. The Company has $8.5 million in cash and continues to expand its retail locations with a target of 8,000 locations by 4th quarter 2010.

Presentation from the RedChip
Shanghai China 2009 Conference

Shanghai China 2009 Conference Presentation - CEO and Chairman Si Chen

• ALN is the largest producer and distributor of chestnuts in China, who consumes more chestnuts than any other country.
• The processed food industry in China is growing 8% annually.
• ALN produced 230 products in 2009, including 19 new products in the convenience foods segment.
• ALN operates five facilities, which include deep-freezing lines, canning lines, and convenience food lines.
• On April 28, 2010, ALN announced that 550 7-Eleven convenience stores in Guangzhou, China began selling ALN’s "Lunch Box" products. Lorain's "Lunch Box" is a rice-based meal which includes a protein and a vegetable as part of the packaged meal. In additional to "Lunch Box" products, American Lorain has several additional convenience type foods currently under review by 7-Eleven including: chestnuts, pickled vegetables and candied beans.
• On March 30, 2010, ALN announced that it signed an agreement with wellknownJinluo Group to start sales of Canned Bean and Bean Paste through Jinluo's network of approximately 3,000 retail food stores in China.

• Revenue grew 15.8% year-over-year to $24.6 million in 1Q10, up from $21.2 million in 1Q09.
• Convenience foods sales increased 586.0% year over year to $7.1 million in 1Q10, up from $1.3 million in the same period last year.
• Operating income grew 10.6% year-over-year to $3.3 million in 1Q10, up from Q1 2009.
• Net income grew 6% year-over-year to $1.9 million in 1Q10, up from $1.8 million 1Q09.

American Lorain Corporation (ALN) is an integrated food manufacturing company. The Company develops, manufactures, and sells chestnut products, convenience foods, and frozen, canned and bulk food (FCB food). The Company produces approximately 45 varieties of chestnut products. ALN’s convenience food product includes Ready-to-cook (RTC), Ready-to eat (RTE), and Meals ready-to-eat (MRE) food products including fish, meats and jams. The Company also produces various FCB food including frozen vegetables and fruits.