BEIJING, Oct. 9 /PRNewswire-Asia-FirstCall/ -- China Agritech, Inc. (Nasdaq: CAGC) ("China Agritech" or "the Company"), a leading national liquid and granular organic compound fertilizer manufacturer and distributor in China, today announced that it is increasing its annual net revenue and net income guidance for the year ended December 31, 2009. This increase in guidance follows a 56.9% increase in net revenues and 91.2% rise in net income for the second quarter ended June 30, 2009.
The Company is now expecting net revenue for the year 2009 to be as high as $70 million versus the previous guidance of over $60 million. The revised guidance for net income is approximately $12.5 million compared with the previous net income guidance of $9.5 million. Diluted earnings per share are now expected to approximate $1.88, based on the current average number of diluted shares outstanding. The new guidance represents almost a 55% increase for net revenues and around a 45% rise for net income over the year 2008 results.
Mr. Yu Chang, Chairman and Chief Executive Officer of China Agritech, commented, "We are gratified with the success of our new regional production facilities and our expanded line of organic fertilizers. We now offer farmers more solutions to grow their crops and improve soil fertility. We may also benefit from the Chinese government’s promotion of organic food and therefore organic fertilizers, as well as from the measures enacted to improve farmers’ wealth."
The revised 2009 guidance for net revenue and net income is based on the Company’s current views on the operating and market conditions, which are subject to change.
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 about the Company, please visit http://www.chinaagritechinc.com .
Safe Harbor Statement
This release may contain certain "forward-looking statements" relating to the business of China Agritech and its subsidiary companies, which can be identified by the use of forward-looking terminology such as "believes," "expects," "anticipates," "estimates" or similar expressions, including, but not limited to, statements regarding the continued demand for China Agritech’s products, China Agritech’s ability to sustain growth for the balance of the year and China Agritech’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, 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. 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.
For more information, please contact:
In China:
Mr. Gareth Tang
Chief Financial Officer
China Agritech, Inc.
Tel: +86-10-5962-1220
Email: gareth@chinaagritech.com
In the U.S.:
Mr. Kevin Theiss
Investor Relations
Grayling
Tel: +1-646-284-9409
Email: kevin.theiss@us.grayling.com
