BEIJING, Feb. 19 /Xinhua-PRNewswire-FirstCall/ -- China Agritech, Inc. (OTC Bulletin Board: CAGC) (“China Agritech”, the “Company”), a leading liquid fertilizer manufacturer company in China, today announced guidance for the year ending December 31, 2008.
For fiscal year 2008, China Agritech expects to generate revenue of $60 - $62 million, and net income to $9.5 - $10 million for earnings per share of $0.38 to $0.40. The Company also expects its gross margin will be impacted as the lower margin granular fertilizer begins to contribute a greater percentage of total revenue in the second half of year 2008. In fiscal 2007, the Company’s guidance is for revenue to be in the range of $38.0 - $40.0 million and net income to be in the range of $8.4 - $8.6 million for earnings per share of $0.34 to $0.35.
China Agritech is on track to construct its production facilities of organic granular compound fertilizer with total planned capacity of 200,000 metric tons by the end of 2008. The Company expects to finish the construction of its first organic granular compound fertilizer factory in Beijing by the end of February 2008. Production at this facility is scheduled to begin in March 2008. China Agritech plans to begin construction for the Heilongjiang and Xinjiang factories in early April 2008. The Company is still evaluating the location of the fourth organic granular compound fertilizer facility.
“We are very pleased with the progress we have made to date and expect continued growth going forward,” commented Mr. Yu Chang, CEO of China Agritech. “We continue to develop the market in Central, Western and Southern regions of China through our distribution network and the strategic alliance with Sinochem. We also expect to our organic granular compound fertilizer segment will contribute to both our top line and bottom line in 2008.”
About China Agritech Inc.
China Agritech is engaged in the development, manufacture and distribution of organic liquid compound fertilizers and related products in the People’s Republic of China. The company has developed proprietary formulas that provide a continuous supply of high-quality agricultural products while maintaining soil fertility. The company sells it products to farmers located in twenty provinces of China including: Hainan, Anhui, Hubei, Jiangsu, Jiangxi, Guangxi, Liaoning, Shanxi Heilongjiang, Hebei, Jilin, Shandong, Inner Mongolia, Henan, Sichuan, Guangdong, Xinjiang, Yunnan, Chongqing and Guizhou. For more information visit http://www.chinaagritechinc.com .
Safe Harbor Statement
This press release contains statements that constitute forward-looking statements. These statements include descriptions regarding the intent, belief or current expectations of the Company or its officers with respect to the consolidated results of operations and financial condition of the Company. These statements can be recognized by the use of words such as “expects,” “plans,” “will,” “estimates,” “projects,” “intends,” or words of similar meaning. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ from those in the forward-looking statements as a result of various factors and assumptions. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond the control of the Company) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by such forward- looking statements such as the inability to protect proprietary formulas, the price of raw materials, the Company’s ability to fulfill its orders, actual results differing from forecasted results, the Company’s ability to complete construction and begin production at its new factories according to the time line discussed above , any liabilities from unknown harmful effects of the product, and adverse weather conditions. The Company has no obligation and does not undertake to revise forward-looking statements to reflect future events or circumstances.
For more information, please contact:
CCG Elite Investor Relations
Crocker Coulson, President
Tel: +1-310-231-8600 x103
Email: crocker.coulson@ccgir.com
China Agritech, Inc.
Kelviz Lim Kok Siak, VP of Finance
Tel: +86-10-5962-1220
Email: kelviz@chinaagritech.com
