Message #2 From:
NewsBot Date: April 13, 2008 11:04:38 PM
China Agri-Business Announces Record Revenue and Income for 2007
China Agri-Business Announces Record Revenue and Income for 2007
Company Builds Presence in China's Organic Agriculture Products Market, Introducing Three New Products in Q4 2007
China Agri-Business, Inc. (OTCBB: CHBU) a
manufacturer of biochemical agricultural application products in China,
announced its financial results for the year ended December 31, 2007.
Sales for the year ended December 31, 2007 were $3.04 million, an increase
of 41% compared to 2006, while net income increased 16% to $1.06 million
compared to $913,000 in 2006. Net income as a percentage of sales decreased
7% from 42% in 2006 to 35% in 2007, due primarily to the increase of
professional fees.
The Company's balance sheet remains strong. Cash and cash equivalents
increased 58% to $5,984,448, as compared to $3,785,535 at December 31,
2006.
Mr. Liping Deng, President and CEO of China Agri-Business, commented on the
Company's performance stating, "We are right on target. In November of
2007, we introduced three new organic products at the 23rd annual China
Agriculture Fertilizer and Machine Trade Show. These new products,
'Xinsheng Huang-jin-gai,' 'Xinsheng Jia-tian-xia' and 'Xinsheng Bai-le,'
have been very well received. The expansion of our product line has also
enabled us to expand into new geographic markets. Our products are
currently sold in more than 20 provinces in China, and the number of retail
establishments that sell our products surpassed 800, an increase of 60% as
compared to 2006."
Mr. Deng went on to say "Our successes in 2007 serve as a solid foundation
for our development in 2008 and beyond. As we continue our efforts to
establish the Company as a leader in China's growing organic agricultural
application sector, we are focusing on the quality of our products, the
depth of our product line, and the growth of our sales network in China."
China Agri-Business, Inc. Financial Highlights
As of December 31, -------------------------- 2007 2006 ------------ ------------ Current Assets Cash and cash equivalents $ 5,984,448 $ 3,785,535 Accounts receivable, net of allowance for doubtful accounts of $23,991 and $2,665, respectively 65,118 103,844 Inventory 60,582 92,253 Other receivables 6,855 18,476 Loans receivable - 301,447 Prepaid expenses 5,735 22,137 ------------ ------------ Total Current Assets 6,122,738 4,323,692
Property, plant and equipment, net 276,000 296,344
Investment in Tienwe Technology 822,540 769,477
Intangible assets, net 73,554 86,014 ------------ ------------ Total Assets $ 7,294,832 $ 5,475,527 ============ ============
Current Liabilities Accounts payable and accrued liabilities $ 166,200 $ 51,276 ------------ ------------ Redeemable Series A preferred stock, par value $.001 per share; authorized 100,000 shares; issued and outstanding 0 and 10,000 shares, respectively - 100,000 ------------ ------------ Stockholders' Equity Common stock par value $.001 per share; authorized 100,000,000 shares; issued and outstanding 12,958,574 and 12,278,774 shares, respectively 12,959 12,279 Additional paid-in capital 4,150,636 3,629,709 Retained earnings 2,308,873 1,449,991 Accumulated other comprehensive income 656,164 232,272 ------------ ------------ Total stockholders' equity 7,128,632 5,324,251 ------------ ------------ Total Liabilities and Stockholders' Equity $ 7,294,832 $ 5,475,527 ============ ============
For the Year Ended Results of Operation December 31, -------------------------- 2007 2006 ------------ ------------ Sales of products $ 3,037,414 $ 2,154,894 Cost of goods sold 964,961 655,530 ------------ ------------ Gross profit 2,072,453 1,499,364 Selling, general and administrative expenses 1,029,230 592,794 Income from operations 1,043,223 906,570 Interest income 15,659 6,283 ------------ ------------ Income before income taxes 1,058,882 912,853 Income taxes - - ------------ ------------ Net income 1,058,882 912,853 Deemed dividend relating to BCF of Series A preferred stock (200,000) - ------------ ------------ Net income attributable to common stockholders $ 858,882 $ 912,853 ============ ============ Earnings per common share: Basic and diluted $ 0.07 $ 0.08 ============ ============
ABOUT CHINA AGRI-BUSINESS, INC.
China Agri-Business, Inc., through its subsidiary, Shaanxi Xin Sheng
Centennial Agriculture and Technology Co., Ltd., develops, manufactures,
and markets organic biochemical agricultural application products in China.
The Company's products are categorized into following six primary products
groups: "Xinsheng Luyuan," "Xinsheng Lufeng," "Xinsheng Dadang," "Xinsheng
Huang-jin-gai," "Xinsheng Jia-tian-xia," and "Xinsheng Bai-le." Within
these categories, China Agri-Business produces more than 50 different
proprietary applications. These products function as a botanical growth and
vitality stimulant, as soil conditioners and as plant nutrient supplements.
They are designed to prevent and cure plant diseases and eliminate
parasites and may be applied to a wide variety of food and non-food crops,
including potatoes, vegetables, cotton and fruit plants and trees. They are
used either alone or to supplement traditional fertilizer products. The
Company owns and manages its manufacturing facilities and has established a
distribution network that is serviced by approximately 60 sales personnel.
The Company's products are primarily sold through distributors in more than
20 provinces throughout China.
Safe Harbor
Certain statements in this release concerning our future growth prospects
are forward-looking statements, within the meaning of Section 27A of the
U.S. Securities Act of 1933, as amended, and Section 21E of the U.S.
Securities Exchange Act of 1934, as amended, which involve a number of
risks and uncertainties that could cause actual results to differ
materially from those in such forward-looking statements. The risks and
uncertainties relating to these statements include, but are not limited to,
risks and uncertainties regarding the success of our investments, risks and
uncertainties regarding fluctuations in earnings, our ability to sustain
our previous levels of profitability including on account of our ability to
manage growth, intense competition, wage increases in China, our ability to
attract and retain highly skilled professionals, time and cost overruns on
fixed-price, fixed-time frame contracts, client concentration, our ability
to successfully complete and integrate potential acquisitions, withdrawal
of governmental fiscal incentives, political instability and regional
conflicts and legal restrictions on raising capital or acquiring companies
outside China. Additional risks that could affect our future operating
results are more fully described in our United States Securities and
Exchange Commission filings including our SB-2 dated July 12, 2007, and
annual report on Form 10-KSB for the year ended December 31, 2007, and our
other recent filings. These filings are available at www.sec.gov. We may,
from time to time, make additional written and oral forward-looking
statements, including statements contained in our filings with the
Securities and Exchange Commission and our reports to shareholders. We do
not undertake to update any forward-looking statements that may be made
from time to time by or on our behalf.
Contact:
Michael S. Segal
Director
Email: Email Contact
Phone: 1-646-623-6999
