JUNAN COUNTY, Shandong Province, China, June 12 /Xinhua-PRNewswire/ --
Millennium Quest, Inc. (OTC Bulletin Board: MLQT.OB; the "Company") a leading
China-based food processing company engaged in the development, manufacture
and sale of food products worldwide, today announced financial results for the
first quarter of the Company's 2007 fiscal year, ended March 31, 2007. The
Company develops, manufactures and sells its food products through its
subsidiaries under the brand name "Lorain Foods."
Quarter to quarter comparison
For the three months ended March 31, 2007, the Company reported revenues
of $11.9 million, an increase of 112.9% compared to the $5.6 million reported
for the same period last year. Gross profits for the three months ended March
31, 2007, were $2.9 million, or 24.8% of sales, compared to gross profits of
$1.3 million, or 23.3% of sales, for the same quarter last year. Total
operating expenses for the three months ended March 31, 2007 were $0.49
million, or 4.1% of sales, compared to $0.66 million, or 11.8% of sales, for
the same period last year. Net income for the three months ended March 31,
2007 was $1.5 million, an increase of 522.7% compared to net income of $0.25
million in the same period a year ago.
Balance sheet items
The Company's cash and cash equivalents balances as of March 31, 2007 was
$8.5 million, compared to cash and cash equivalents of $11.6 million as of
December 31, 2006. As of March 31, 2007, total current assets were $35.7
million and stockholders equity was $5.6 million.
According to Chairman, President and CEO Si Chen, "We are extremely
pleased with our first quarter results, and as the demand for our products
remains strong we expect continued growth for the balance of the year."
Referring to a May 31, 2007 release describing a fire in the Company's Beijing
factory, Mr. Chen stated, "Despite the recent setback caused by the fire, we
are quickly recovering. We are moving forward and taking the right steps to
assure that the entire organization is focused totally on meeting all of our
objectives."
About Millennium Quest, Inc.
Millennium Quest, Inc. ("Lorain") is a U.S. public company that only
operates through its four indirect subsidiaries, two in Junan County, one in
Luotian Hubei Province and one in Beijing. Lorain is a leading food processing
company engaging in the development, manufacture and sale of food products
worldwide. Formed in 1994, the company produces hundreds of varieties of food
products, categorized into three interrelated divisions: chestnut products,
processed food, including frozen, canned and packaged goods, and convenience
foods, consisting of meals ready to eat (MRE) and ready to cook (RTC).
FORWARD LOOKING STATEMENTS
This release contains certain "forward-looking statements" relating to the
business of Lorain and its subsidiary companies, which can be identified by
the use of forward-looking terminology such as "believes, expects" or similar
expressions, including but not limited to, statements regarding the continued
demand for Lorain's products, Lorain's ability to sustain growth for the
balance of the year and Lorain's ability to generally meet all of its
objectives. Such forward looking statements involve known and unknown risks
and uncertainties, including all business uncertainties relating to product
development, marketing, and concentration in a single customer, raw material
costs, market acceptance, future capital requirements, and competition in
general and other factors that may cause actual results to be materially
different from those described herein as anticipated, believed, estimated or
expected. Certain of these risks and uncertainties are or will be described in
greater detail in our filings with the SEC. Lorain is under no obligation to
(and expressly disclaims any such obligation to) update or alter its forward-
looking statements whether as a result of new information, future events or
otherwise.
Contact: Mr. Sheldon Saidman
(719-548-9963)
