-- 3Q09 Revenue Increases 43% Over Prior Year Third Quarter;
Net Income Up Over 200%, Exceeding Company's Internal Projections --
GANSU, China, May 18 /PRNewswire-Asia/ -- China Dasheng Biotechnology Company ("China Dasheng" or "the Company") (OTC Bulletin Board: CDBT), a leading producer and distributor of organic bacteria based additives for crops and livestock feeds in the PRC, announced unaudited financial results for the third quarter of fiscal year 2009, which ended March 31, 2009.
Highlights for Q3 FY2009 (all figures in US$) included:
-- Total revenue grew approximately 43% to $5.3 million in the third
quarter of 2009, compared with $3.7 million in the prior year quarter;
-- Gross margin improved by 50% to $2.6 million in the third quarter of
2009, compared with $1.8 million in the prior year quarter;
-- Operating expenses, as a percentage of revenue, were reduced by over
900 basis points to 20.2% in the third quarter of 2009, compared to
29.9% in the prior year quarter;
-- Income from operations increased by 140% to $1.6 million in the third
quarter of 2009, compared to $0.7 million in the prior year quarter;
-- Net income rose over 200% to $1.3 million in the third quarter of 2009,
or $0.04 per diluted share, compared with $0.4 million, or $0.01 per
share in the prior year quarter;
-- $10.4 million of cash on the balance sheet as of the quarter end, March
31, 2009.
Chairman of the Board, Mr. Jinjun Qi commented, "China Dasheng reported another successful quarter, demonstrating the power and continued strength of our core business offerings. There is a growing demand in China at both the national and local level for "going Green" agriculture and the Company is uniquely position to capitalize on this trend with our proprietary products and leading market position.
During the third quarter we posted solid year-over-year revenue growth all while continuing to deliver sustained and growing cash flows, enabling us to fund our future growth. We also had a very strong quarter from an expense management perspective, as we intensified our focus on those measures that would allow us to increase productivity and expand margins. It is clear that the financial disciplines we put in place are bearing fruit."
About China Dasheng Biotechnology Company
China Dasheng Biotechnology Company, a leading producer and distributor of organic bacteria based additives for crops and livestock feeds through its three subsidiary segments, Gansu Dasheng Biotechnology Company, Hainan Lushen Biology Technology Company and Yangling Elemiss Foods Company, operates within the biological products and fertilizer agents market including organic fertilizers, non-chemical agents, and biological agents based additives. The major product line of AM/HM biological bacterial crop and live stock feed additive were certified by the China Green Product Development Center as a "Grade A Green Food Raw Material." To learn more about the Company visit http://www.chinadashengbio.com .
Safe Harbor Statement
The statements contained herein that are not historical facts are "forward-looking statements" within the meaning of Section 21E of the Securities and Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Such forward-looking statements may be identified by, among other things, the use of forward-looking terminology such as "believes," "expects," "may," "will," "should," or "anticipates" or the negative thereof or other variations thereon or comparable terminology, or by discussions of strategy that involve risks and uncertainties. In particular, our statements regarding the potential growth of the markets are examples of such forward-looking statements. The forward-looking statements include risks and uncertainties, including but not limited to, general economic conditions and regulatory developments, not within our control. The factors discussed herein and expressed from time to time in our filings with the Securities and Exchange Commission could cause actual results and developments to be materially different from those expressed or implied by such statements. The forward-looking statements are made only as of the date of this filing, and we undertake no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
For More information, please contact:
China Dasheng Biotechnology Company
James Gao, Vice President, Investor Relations
Tel: +1-908-938-2025
Email: gaojingbo@chinadashengbio.com
CHINA DASHENG BIOTECHNOLOGY COMPANY (FORMERLY NAMED AS MAX NUTRITION INC.) CONSOLIDATED BALANCE SHEETS (Unaudited) AS OF MARCH 31, 2009 and JUNE 30, 2008 (in US DOLLARS)
31-Mar-09 30-Jun-08
ASSETS
Current assets:
Cash & cash equivalents $ 10,413,273 $ 1,561,403
Accounts receivable, net of allowance
for doubtful accounts of $22,794 and
$16,303, respectively 3,670,524 3,244,476
Inventory 476,832 561,883
Advances to suppliers 20,886 1,486,379
Due from related parties 94,093 1,580,820
Prepayments and other current assets 89,073 35,675
Total current assets 14,764,681 8,470,636
Investment in Real Estate Ventures 5,401,954 6,483,437
Property, plant and equipment, net of
accumulated depreciation 2,859,290 1,618,829
Other Assets
Land use right, net of accumulated
amortization 1,453,481 1,531,555
Notes receivable 1,066,449 998,502
Long-term prepayments 818,882 1,150,082
Total other assets 3,338,812 3,680,139
Total Assets $ 26,364,737 $ 20,253,041
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,425,217 $ 725,680
Accrued expenses and other payables 784,142 809,463
Payable to related parties 18,134 --
Total current liabilities 2,227,493 1,535,143
Long-term payable - land use right 1,464,575 1,459,137
Minority Interest 3,447,892 2,282,109
Stockholders' Equity:
Preferred stock, $0.001 par value,
1,000,000 shares authorized, - 0 -
shares issued and outstanding at
March 31,2009 and June 30, 2008 -- --
Common stock, $0.001 par value,
74,000,000 and 74,000,000 shares
authorized, 30,000,000 and 30,000,000
shares issued and outstanding at
March 31, 2009 and June 30, 2008,
respectively 30,000 30,000
Additional paid-in-capital 3,846,035 3,846,035
Statutory surplus reserve and common
welfare fund 2,643,339 1,837,187
Retained earnings 11,568,237 8,009,800
Accumulated other comprehensive income 1,137,166 1,253,630
Total stockholders' equity 19,224,777 14,976,652
Total Liabilities and
Stockholders' Equity $ 26,364,737 $ 20,253,041
CHINA DASHENG BIOTECHNOLOGY COMPANY (FORMERLY NAMED AS MAX NUTRITION INC.) CONSOLIDATED STATEMENTS OF OPERATION (Unaudited) FOR THE NINE AND THREE MONTHS ENDED MARCH 31, 2009 and 2008 (in US DOLLARS)
For the nine months For the three months ended
ended March 31, March 31,
2009 2008 2009 2008
Net Sales $16,076,862 $ 11,421,215 $ 5,308,553 $ 3,706,091
Cost of Sales (8,270,673) (6,135,328) (2,665,814) (1,945,490)
Gross profit 7,806,189 5,285,887 2,642,739 1,760,601
Operating Expenses:
Selling expenses 966,504 603,492 316,595 202,689
General and
administration expense 1,583,324 1,388,148 758,157 904,209
Total operating expenses 2,549,828 1,991,640 1,074,752 1,106,898
Income from Operations 5,256,361 3,294,247 1,567,987 653,703
Other Income and
Expenses:
Interest income
(expenses) 83,245 (31,837) 29,653 (3,194)
Other income 2,925 -- -- --
Other expenses (4,363) (58,468) 646 (1,319)
Total other income and
(expense) 81,807 (90,305) 30,299 (4,513)
Income before income
taxes and minority
interest 5,338,168 3,203,942 1,598,286 649,190
Minority Interest (973,579) (607,097) (293,613) (215,623)
Net income $ 4,364,589 $ 2,596,845 $ 1,304,673 433,567
Other Comprehensive
Income:
Foreign currency
translation
adjustment (116,464) 1,070,681 31,683 542,545
Comprehensive income $ 4,248,125 $ 3,667,526 $ 1,336,356 $ 976,112
Basic and Diluted
Income per common
share
Basic $ 0.15 $ 0.09 $ 0.04 $ 0.01
Diluted $ 0.15 $ 0.09 $ 0.04 $ 0.01
Weighted average common
share outstanding
Basic 30,000,000 30,000,000 30,000,000 30,000,000
Diluted 30,000,000 30,000,000 30,000,000 30,000,000
CHINA DASHENG BIOTECHNOLOGY COMPANY (FORMERLY NAMED AS MAX NUTRITION INC.) CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) FOR THE NINE MONTHS ENDED MARCH 31, 2009 AND 2008 (in US DOLLARS)
For the nine months ended March 31,
2009 2008
Cash Flows From Operating Activities:
Net income $ 4,364,589 $ 2,596,845
Adjustments to reconcile net
income to net cash provided by
operating activities:
Minority interest
in net income of
consolidated
subsidiaries 973,579 607,097
Bad debt expense 6,424 --
Depreciation expense 236,961 236,690
Amortization expense 170,027 110,544
Loss on disposal of
fixed asset 4,922 --
Changes in operating assets and
liabilities:
Accounts receivable (420,370) (512,552)
Inventory (83,626) 196,945
Advance to suppliers 1,471,038 --
Prepayments and other
current assets 199,819 1,119,869
Accounts payable 867,602 (310,613)
Accrued expenses and
other current liabilities (28,342) (2,010,476)
Cash provided (used) by operating
activities 7,762,623 2,034,349
Cash Flows From Investing Activities:
Purchases of
property, plant and
equipment (1,488,893) (28,405)
Notes Receivables (64,221) --
Cash dividends
received from real
estate investments 1,105,676 --
Cash used in investing activities (447,438) (28,405)
Cash Flows From Financing Activities:
Repayment of long-term
debt -- (1,197,946)
Amounts received from
related parties 1,510,758 938,601
Cash provided by financing
activities 1,510,758 (259,345)
Effect of currency exchange rate on
cash and cash equivalents 25,927 277,319
Increase in cash and cash equivalents 8,851,870 2,023,918
Cash and Cash Equivalents - Beginning
of the year 1,561,403 1,316,569
Cash and Cash Equivalents - Ending
of the year $ 10,413,273 $ 3,340,487
Supplemental disclosures of cash flow
information:
Interest paid $ 41,760 $ --
Income Taxes paid -- --
