BEIJING, Jan. 21, 2011 /PRNewswire-Asia/ -- China Agritech, Inc. (Nasdaq: CAGC) ("China Agritech", or the "Company"), a leading organic compound fertilizer manufacturer and distributor in China, today announced preliminary, unaudited revenues for the fourth quarter and fiscal year ended December 31, 2010.
Preliminary unaudited 2010 annual revenues were $119 million compared to $76 million in 2009 and guidance of $114 million. Preliminary unaudited fourth quarter revenues were $41 million compared to $21 million for the same period in 2009.
As of December 31, 2010, the Company had established 21 regional distribution centers, exceeding the original annual goal of 10. These distribution centers are located in Henan and Jiangsu provinces, two of the most important agricultural regions in the central and eastern areas of China.
In May 2010, the Company signed a renewed contract supplying organic liquid compound fertilizers to Sinochem, China's largest fertilizer distributor. The sales contract is worth RMB 61 million (approximately $9 million) and the Company will also continue to supply Sinochem with organic granular compound fertilizer under another existing contract. Additionally, in December 2010, the Company became an official supplier of organic liquid compound fertilizer to China National Agrochemical Corporation ("CNAC"), China's largest developer, manufacturer and seller of pesticides. CNAC has purchased its first order of RMB 13.6 million (approximately $2.0 million) of customized organic liquid compound fertilizer.
Mr. Yu Chang, Chairman and Chief Executive Officer of China Agritech, commented, "Last year, China experienced unprecedented drought, flooding and other natural disasters, negatively impacting our operation during the third quarter. However, due to concerted efforts of the whole Company, we were able to stage a strong comeback in the fourth quarter and exceeded annual sales target. In particular, annual sales of granular compound fertilizers increased 80% from 2009, validating our strategy in diversifying product portfolio. We expect the establishment and expansion of regional distribution centers in the central and eastern part of China will become a new driver of growth for the Company in 2011."
About China Agritech, Inc.
China Agritech, Inc. is engaged in the development, manufacture and distribution of liquid and granular organic compound fertilizers and related products in China. The Company has developed proprietary formulas that provide a continuous supply of high-quality agricultural products while maintaining soil fertility. The Company sells its products to farmers located in 28 provinces of China. For more information, please visit http://www.chinaagritechinc.com.
Safe Harbor Statement
This press release contains certain statements that may be deemed to be "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, that address activities, events or developments that the Company expects, projects, believes or anticipates will or may occur in the future, including, without limitation, statements about its business or growth strategy, general industry conditions, future operating results of the Company, capital expenditures, expansion and growth opportunities, financing activities and other such matters, are forward-looking statements. Although the Company believes that its expectations stated in this press release are based on reasonable assumptions, actual results may differ from those projected in the forward-looking statements. Certain of these risks and uncertainties are or will be described in greater detail in our filings with the SEC. Except as required by law, China Agritech is under no obligation to update or alter its forward-looking statements whether as a result of new information, future events or otherwise.
