XI'AN, China, April 6, 2011 /PRNewswire-Asia-FirstCall/ -- China Agri-Business, Inc. (the "Company," OTC: CHBU), a manufacturer and distributor of organic agricultural application products in China, announced its operating results for the year ended December 31, 2010. Revenue increased 304% to $12 million, compared to $3 million in 2009. Net income for 2010 increased to $3.6 million, or $0.28 per basic and diluted share, compared to net income of $1.1 million, or $0.08 per basic and diluted share in 2009.
2010 Financial Highlights
As of December 31, 2010, there were approximately 500 Xinsheng Shiji Branded Stores. The majority of branded stores are located in Shannxi Province (local province); others are located in Hunan and Sichuan provinces. For the year ended December 31, 2010, approximately 75% of revenue was generated from our Xinsheng Shiji Branded Stores, and 25% from our national sales network.
China Agri-Business, Inc. |
||||||
Consolidated Balance Sheets |
||||||
December 31, 2010 and 2009 |
||||||
2010 |
2009 |
|||||
Assets |
||||||
Current Assets |
||||||
Cash and cash equivalents |
$ 13,153,741 |
$ 9,625,657 |
||||
Accounts receivable, net |
93,634 |
28,310 |
||||
Inventory |
91,596 |
138,253 |
||||
Other receivables |
- |
7,911 |
||||
Prepaid expenses |
16,143 |
25,396 |
||||
Total Current Assets |
13,355,114 |
|
9,825,527 |
|||
Property, plant and equipment, net |
599,468 |
337,995 |
||||
Investment in Tienwe Technology |
909,120 |
879,000 |
||||
Deferred financing costs, net |
- |
72,732 |
||||
Prepaid land lease costs |
538,654 |
- |
||||
Intangible assets, net |
114,235 |
3,724 |
||||
Total Assets |
$ 15,516,591 |
|
$ 11,118,978 |
|||
Liabilities and Stockholders' Equity |
|
|
|
|||
Current Liabilities |
||||||
Current portion of long-term debt |
$ 9,405 |
$ 8,779 |
||||
Current portion of convertible notes, net |
- |
427,501 |
||||
Accounts payable and accrued liabilities |
337,576 |
286,128 |
||||
Due to chief executive officer - non-interest bearing, due on demand |
501,215 |
- |
||||
Total Current Liabilities |
848,196 |
|
722,408 |
|||
Long Term Liabilities |
||||||
Long-term debt |
99,728 |
105,618 |
||||
Total Long Term Liabilities |
99,728 |
|
105,618 |
|||
Total Liabilities |
947,924 |
|
828,026 |
|||
Stockholders' Equity |
||||||
Undesignated preferred stock, par value $.001 per share; authorized 4,900,000 shares; none issued |
- |
- |
||||
Common stock, par value $.001 per share; authorized 100,000,000 shares, |
||||||
issued and outstanding 13,118,574 and 12,958,574, respectively |
13,119 |
12,959 |
||||
Additional paid-in capital |
4,610,052 |
4,370,212 |
||||
Retained earnings |
8,289,263 |
4,708,473 |
||||
Accumulated other comprehensive income |
1,656,233 |
1,199,308 |
||||
Total stockholders' equity |
14,568,667 |
|
10,290,952 |
|||
Total Liabilities and Stockholders' Equity |
$ 15,516,591 |
|
$ 11,118,978 |
|||
China Agri -Business, Inc. |
||||
Consolidated Statements of Income and Comprehensive Income |
||||
For the Years Ended December 31, 2010 and 2009 |
||||
|
2010 |
|
2009 |
|
Sales of products |
$ 12,274,091 |
|
$ 3,038,560 |
|
Cost of goods sold |
6,818,881 |
|
1,065,599 |
|
Gross profit |
5,455,210 |
|
1,972,961 |
|
Selling, general and administrative expenses |
1,737,742 |
|
708,042 |
|
Income from operations |
3,717,468 |
|
1,264,919 |
|
Interest and other income |
26,497 |
|
23,315 |
|
Interest expense |
(163,175) |
|
(225,288) |
|
Loss on impairment of products rights |
- |
|
(8,685) |
|
Income before income taxes |
3,580,790 |
|
1,054,261 |
|
Income taxes |
- |
|
- |
|
Net income |
$ 3,580,790 |
|
$ 1,054,261 |
|
Earnings per common share: |
||||
Basic and Diluted |
$ 0.28 |
|
$ 0.08 |
|
Weighted average number of common shares used to compute earnings per common share: |
||||
Basic and Diluted |
12,965,149 |
|
12,958,574 |
|
Comprehensive Income: |
||||
Net income |
$ 3,580,790 |
|
$ 1,054,261 |
|
Other comprehensive income - foreign currency translation adjustment |
456,925 |
|
13,632 |
|
Comprehensive Income |
$ 4,037,715 |
|
$ 1,067,893 |
|
About China Agri-Business, Inc.
China Agri-Business, Inc., through its operating company in China, Shaanxi Xinsheng Centennial Agriculture and Technology Co., Ltd., manufactures and sells non-toxic fertilizer, bactericide, and fungicide products used for farming in China. Crops grown with Xinsheng's products are eligible to qualify for the "AA Green Food" rating administered by the China Green Food Development Center, an agency under the jurisdiction of the Ministry of Agriculture of the People's Republic of China (however, our products themselves do not bear the "AA green food" designation). The Company's two primary product groups are organic fertilizers (Xinsheng Luyuan brand) and bactericides (Xinsheng Lufeng brand). The Company has a total of five brands and produces more than 50 different applications, including products designed to stimulate plant growth, condition soil, and prevent and cure plant diseases and parasites. The Company has products for a variety of crops, including potatoes, vegetables, cotton, fruit plants, and orchard trees. The products can be used alone or as supplements with other products. The Company's Xinsheng manufacturing facilities are located in Xi'an, Shaanxi province, China. For more information about China Agri, please visit http://www.chinaagri-business.com.
Forward-Looking Statements
This news release contains forward-looking statements. These statements can be identified by the use of forward-looking terminology such as "anticipates," "believes," "continue," "could," "estimates," "expects," "future," "goal," "hopes," "intends," "may," "objective," "plans," "potential," "scheduled," "seek," "should," or "will" or the negative thereof or other variations thereon or comparable terminology, or by discussions of strategy that involve risks and uncertainties. We caution you that no statements contained in this news release should be construed as a guarantee or assurance of future performance or results or the implementation of our current plans. You should not place undue reliance upon any forward-looking statements. Forward-looking statements involve risks and uncertainties, including those discussed under "Item 1A. Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2009 and in other reports we file with the Securities and Exchange Commission ("SEC"). The actual results that we achieve may differ materially from any forward-looking statements due to the effect of such risks and uncertainties. These forward-looking statements are based on current expectations, and, except as required by law, we assume no obligation to update this information whether as a result of new information, future events, or otherwise. You are urged to carefully review and consider the various disclosures made by us in our Annual Report on Form 10-K for the year ended December 31, 2009 and in our other reports we file with the SEC that attempt to advise interested parties of the risks that may affect our business, financial condition, and results of operations.
For more information, please contact: |
|
Michael Segal |
|
Director |
|
Telephone +1 646 623 6999 |
|
Mr. Delong Zhou |
|
Chief Financial Officer |
|
Telephone +1 917 825 2997 |
|
China Agri-Business, Inc. |
|
Building 2, Unit 1, 15th Floor |
|
Ling Xian Xin Cheng |
|
86 Gaoxin Road |
|
Hi-Tech Industrial Development Zone |
|
Xi'an, Shaanxi, China 710065 |
|
Telephone +86 29 6859 6556 or 6557 |
|