China Agri Ind +5,23% beobachten
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No 3 t/o
606 CHINA AGRI 5.84 0.29 5.23 460,660 79,646
China Agri prices IPO at top range
Mar. 16, 2007 – China Agri-Industries Holdings has priced its Hong Kong IPO at HK$3.72, the top end of an indicative price range of between HK$3.1 and HK$3.72, due to strong oversubscription. The retail tranche of China Agri-Industries Holdings' IPO has now been more than 1,000 times oversubscribed, said a source to the South China Morning Post on Thursday. Based o.....
BEIJING, March 8 (Xinhua) -- China Agri-Industries Holdings Limited began an initial public offering (IPO) on the Hong Kong stock market on Thursday, according to the State-owned Assets Supervision and Administration Commission (SASAC).
The IPO will last till noon of March 13 and the company will officially begin trading on March 21, SASAC said.
The offering price range is 3.1 to 3.72 HK dollars, and the final price will be decided on March 15.
China Agri-Industries Holdings Ltd. will offer a total of 860.9 million shares in its global offering, including 697.8 million new shares.
The company, a subsidiary of China National Cereals, Oils, Foodstuffs Import, Export Corporation (COFCO) International Ltd, manufactures, processes and circulates agricultural products.
After listing on the Hong Kong Joint Exchange, China Agri-Industries Holdings Limited and COFCO International Co., Ltd. will be sister companies under the COFCO.
COFCO International Co., Ltd. will be renamed China Foods Limited.
Founded in 1952, COFCO is China's leading grain, oils and foodstuffs import and export group and one of its largest food manufacturers.
China kämpft sich hoch, verdaut die US,...und der letzte IPO Star China Agri performed während ALLE anderen unten bleiben (ausser die kleinen specials wie proactive, die immerhin wieder mehr als 5%..gut machen..)
Last Updated: 27/3/2007 15:30:00 HKT
Stock data is disseminated with 60 minutes delay on this site.
Stock Code Stock Name Nominal
Price($) Change Change(%) Turnover
('000) Volume
('000) Related Information
941 CHINA MOBILE 70.75 0.9 1.26 1,479,706 20,825
857 PETROCHINA 9.04 0.1 1.12 1,331,472 147,985
5 HSBC HOLDINGS 136.8 0.6 0.44 949,016 6,930
728 CHINA TELECOM 3.82 0.15 4.09 793,515 212,233
2628 CHINA LIFE 22.3 0 0.00 783,803 35,155
606 CHINA AGRI 6.02 0.16 2.73 778,052 130,556
China Agritech Schedules Conference Call to Discuss Fourth Quarter and 2006 Year End Results
BEIJING, March 30 /Xinhua-PRNewswire-FirstCall/ -- China Agritech, Inc.
(OTC Bulletin Board: CAGC) ("China Agritech"), a leading liquid fertilizer
manufacturer in China, will host a conference call at 9:00 am EST on
Tuesday, April 3, 2007, to discuss results for the fourth quarter and 2006
Year End Results.
Hosting the call will be Leslie Richardson, of CCG Elite, joined by Mr.
Yu Chang, Chief Executive Officer of China Agritech. The Company plans to
distribute its earnings announcement earlier that same day.
To participate in the conference call, please dial the following number
five to ten minutes prior to the scheduled conference call time: (888) 482-
0024. International callers should dial 617-801-9702. The pass code for the
call is 541 933 05.
If you are unable to participate in the call at this time, a replay
will be available on Tuesday, April 3 at 11:00 p.m. ET, through Tuesday,
April 10. To access the replay from the United States dial 888-286-8010, or
617-801-6888 if calling internationally. Enter the conference ID number
35903644.
This conference call will be broadcast live over the Internet and can
be accessed by all interested parties on the China Agritech website at
http://www.chinaagritechinc.com . To listen to the live webcast, please go
to the China Agritech website at least fifteen minutes prior to the start
of the call to register, download, and install any necessary audio
software. For those unable to participate during the live broadcast, a
replay will be available shortly after the call on China Agritech's website
for 90 days.
About China Agritech Inc.
China Agritech is engaged in the development, manufacturing 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 twelve provinces of China including: Heilongjiang,
Hebei, Liaoning, Jilin, Shandong, Inner Mongolia, Henan, Sichuan,
Guangdong, Xinjiang, Yunnan and Guizhou. For more information visit
http://www.chinaagritechinc.com .
For more information, please contact:
CCG Elite Investor Relations
Crocker Coulson, President
Leslie J. Richardson
Tel: +1-646-213-1915
Email: crocker.coulson@ccgir.com
-- Full year record revenue increases 17% to $29.5 million -- Full year
record net income increases 46% to $5.3 million
BEIJING, April 3 /Xinhua-PRNewswire-FirstCall/ -- China Agritech, Inc.
(OTC Bulletin Board: CAGC) ("China Agritech"), a leading manufacturer of
liquid organic fertilizer in China, today announced its financial results
for the fourth quarter and year ended December 31, 2006.
Fourth Quarter Highlights
-- Revenue increased 36.3% year-over-year to $6.0 million
-- Net income increased 5.5% year-over-year to $1.1 million
-- Established distribution network in Central and Southern China.
Full Year 2006 Highlights
-- Record revenue increased 17% to $29.5 million
-- Gross margin increased 270 basis points to 52%
-- Record net income increased 46% to $5.3 million
Revenue for the fourth quarter 2006 increased 36.3% to $6.0 million,
from $4.4 million in the fourth quarter 2005. The increase in revenue for
the quarter was primarily driven by a combination of changes in the
company's product mix and higher sales volume. Net income increased to $1.1
million, up 5.5% from the fourth quarter of 2005. Fully diluted earnings
per share for the quarter were $0.06, compared to fully diluted earnings
per share of $0.08 in the fourth quarter 2005. The number of diluted
weighted average shares outstanding was 19.1 million in the fourth quarter
of 2006, compared to 14.2 million in the fourth quarter of 2005.
Commenting on the fourth quarter of 2006, Mr. Yu Chang, Chief Executive
Officer of China Agritech, said, "We are very pleased with the top and
bottom line growth we experienced during the fourth quarter. Revenues were
favorably impacted by the introduction of our Lulingbao IV earlier in the
year which added 444 metric tons of sales volume for the quarter. We
recently completed the construction of our third converting facility in
Chongqing at the end of March, and are currently test-running the
production process. We expect production to be fully operational in the
first half of April. Our fourth converting facility in Xinjiang is expected
to come online in May."
Revenue for the fourth quarter 2006 increased 36.3% to $6.0 million
from $4.4 million in the fourth quarter 2005. The year-over-year increase
in revenue was due to the introduction of Lulingbao IV in the second
quarter of 2006 which added 444 metric tons of sales volume offsetting a
decline in sales volume of Tailong I. For the fourth quarter 2006,
Lulingbao III and Lulingbao IV comprised 36.7% and 38.6% of revenue,
respectively, while Tailong I represented 24.6% of revenue. In the fourth
quarter 2005, Tailong I represented 61.8% of revenue and Lulingbao III
represented the other 38.2%.
Gross profit for the fourth quarter 2006 was $3.1 million, up 18.3%
from $2.7 million in the fourth quarter 2005. Gross margin was 52.5%,
compared to 60.4% in the same period a year earlier. Gross margin in the
fourth quarter 2005 was positively impacted by a one-time sale of a custom
formula at a favorable price.
Selling expenses during the quarter were $1.1 million, or 19.0% of
revenue, up from $0.2 million or 5.0% of revenue in the comparable quarter
in 2005. The increase in selling expenses for the quarter was due to costs
associated with the build out of China Agritech's new distribution network.
The company opened 30 sales offices which oversees 600 independent sales
agencies that support its Beijing, Anhui, and Chongqing factories.
China Agritech recorded credits to operating and administrative
expenses in the fourth quarters 2006 and 2005 of $271,120 and $278,520,
respectively. These credits represent the reversal of certain bad-debt
expenses recorded in the previous three quarters and are normally accounted
for in the fourth quarter.
Income from operations was $2.3 million, or 37.9% of sales, compared to
$2.7 million, or 61.7% of sales, in the same period of 2005. The year-over-
year decline in operating margin was due to higher selling expenses in the
fourth quarter 2006 and the positive impact of the one-time sale of a
custom formula which contributed to above average margins in the fourth
quarter of 2005.
Fourth quarter 2006 net income was $1.1 million, up 5.5% from the
fourth quarter of 2005. Fully diluted earnings per share was $0.06 for the
fourth quarter 2006, compared to fully diluted earnings per share of $0.08
for the same period a year earlier. In January 2006, the company completed
a private placement, which increased the number of weighted average diluted
shares to 19.1 million shares in the fourth quarter of 2006, up from 14.2
million in the fourth quarter of 2005.
2006 Year End Results
Revenue for the full year 2006 was $29.5 million, up 17% from $25.3
million in 2005. Gross profit was $15.4 million, up 23% from $12.5 million
in the prior year period. Gross margin for the year was 52% compared to
49.3% in 2005. Operating income was $10.4 million, up 27.6% from $8.1
million for the full year 2005. Net income increased 46% in 2006 to $5.3
million, up from $3.7 million in 2005. Fully diluted EPS for the period was
$0.29, compared to $0.26 for the same period 2005.
Financial Condition
As of December 31, 2006, China Agritech had $6.5 million in cash,
restricted cash and cash equivalents, working capital of $26.5 million and
no long-term debt. Shareholders' equity stood at $26.9 million, up from
$10.0 million as of December 31, 2005. Days sales outstanding for the full
year 2006 was 128.
Business Outlook
During the first quarter 2007, China Agritech completed construction of
its third new factory located in Chongqing, which the company expects to
put into production in early April, 2007. The company has budgeted $1.7
million in capital expenditures for construction of its fourth factory
located in Xinjiang, currently scheduled for completion in May, 2007. China
Agritech expects to see increased revenue growth as a result of the added
capacity starting at the beginning of the peak agriculture growing season
which is during the second quarter of 2007.
"We anticipate a strong 2007 with increased penetration expected to
occur in both domestic and international markets. We believe that the
significant expansion in our production capacity positions us to expand our
target market to Central and Southern China in time for the peak selling
season of spring and summer," said Mr. Chang. "We have established a
substantial regional distribution network to support our geographic
expansion which includes 30 sales offices and 600 independent sales
agencies. Each agency manages 10 sales executives which equates to 6,000
points of sales at the village level. We are also pursuing opportunities in
international market and are hopeful to see favorable progress in the
second half of this year."
Conference Call Information
Management will conduct a conference call to discuss China Agritech's
fourth quarter financial results and provide a corporate overview. The
conference call will take place at 9:00 a.m. Eastern Time, on Tuesday April
3, 2007. To participate in the conference call, please dial the following
number five to ten minutes prior to the scheduled conference call time:
(888) 482- 0024. International callers should dial 617-801-9702. The pass
code for the call is 541 933 05.
If you are unable to participate in the call at this time, a replay
will be available on Tuesday, April 3 at 11:00 a.m. ET, through Tuesday,
April 10. To access the replay from the United States dial 888-286-8010, or
617-801-6888 if calling internationally. Enter the conference ID number
35903644.
This conference call will be broadcast live over the Internet and can
be accessed by all interested parties on China Agritech's website at
http://www.chinaagritechinc.com . To listen to the live webcast, please go
to China Agritech's website at least fifteen minutes prior to the start of
the call to register, download, and install any necessary audio software.
For those unable to participate during the live broadcast, a replay will be
available shortly after the call on China Agritech's website for 90 days.
About China Agritech
China Agritech is engaged in the development, manufacturing 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 its products
to farmers located in twelve provinces of China including: Heilongjiang,
Hebei, Liaonong, Jilin, Shandong, Inner Mongolia, Henan, Sichuan,
Guangdong, Xinjiang, Yunnan and Guizhou. For more information visit
http://www.chinaagritechinc.com .
The statements contained in this Release that are not purely historical
are forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of
1934, including without limitation, statements regarding the Company's
expectations, hopes, beliefs, intentions or strategies regarding the
future. These forward- looking statements are based on the Company's
current expectations and beliefs concerning future developments and their
potential effects on the Company. There can be no assurance that future
developments affecting the Company will be those anticipated by the
Company. 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 the proprietary
formula, the price of raw materials, any liabilities from unknown harmful
effects of the product, and adverse weather conditions. The Company
undertakes no obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise, except as may be required under applicable securities laws.
--financial tables below---
CHINA AGRITECH, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET AS OF DECEMBER 31, 2006 AND 2005
2006 2005
ASSETS
Current Assets
Cash and cash equivalents $ 6,430,009 $ 255,831
Restricted cash 100,028 275,000
Accounts receivable, net 12,239,073 8,525,185
Inventories 1,322,244 72,827
Advances to suppliers 8,038,974 2,076,252
Prepayments and other receivables 382,463 376,064
Total Current Assets 28,512,791 11,581,159
Property, Plant and Equipment, net 2,514,123 1,065,146
Total Assets $ 31,026,914 $ 12,646,305
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable $ 108,886 $ 115,024
Accrued expenses and other
payables 871,495 616,363
Amount due to related parties 954 56,702
Tax payables 1,028,885 562,355
Total Current Liabilities 2,010,220 1,350,444
Minority Interests 2,160,575 1,237,910
Commitments -- --
Stockholders' Equity
Common stocks; $0.001 par value,
100,000,000 shares authorized,
shares issued and outstanding
19,143,615 and 14,343,615 19,144 14,344
Additional paid-in capital 12,619,049 1,547,741
Statutory reserves 2,790,916 1,731,067
Accumulated other comprehensive
income 601,288 228,566
Retained earnings 10,825,722 6,536,233
Total Stockholders' Equity 26,856,119 10,057,951
Total Liabilities and
Stockholders' Equity $ 31,026,914 $ 12,646,305
CHINA AGRITECH, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND YEAR ENDED DECEMBER 31, 2006 AND 2005
For the three months ended For years ended
December 31, December 31,
2006 2005 2006 2005
(unaudited) (unaudited)
Revenue $6,002,948 $4,404,863 $29,525,577 $25,335,316
Cost of Revenue 2,853,719 1,742,253 14,161,358 12,848,958
Gross Profit 3,149,249 2,662,610 15,364,219 12,486,358
Operating expenses:
Selling expenses 1,143,016 221,663 2,983,756 2,372,151
General and
administrative (271,120) (278,520) 2,015,252 1,993,522
Total Operating
Expenses 871,896 (56,857) 4,999,008 4,365,673
Income from Operations 2,277,353 2,719,467 10,365,211 8,120,685
Other income
(expenses)
Merger cost (640,000) (640,000)
Other (expense) income 137,760 317 98,617 252
Finance costs -1,777 (824) (3,590) (412)
Total other income
(expense) 135,983 (640,507) 95,027 (640,160)
Income Before Taxes 2,413,336 2,079,654 10,460,238 7,480,525
Provision for income
taxes (1,059,286) (842,224) (4,248,144) (3,173,533)
Minority interests (215,068) (157,787) (862,756) (631,113)
Net Income $ 1,138,982 $ 1,079,643 $5,349,338 $3,675,879
Comprehensive
income -
foreign currency
translation
adjustments 5,393 228,566 372,722 228,566
Comprehensive Income $ 1,144,375 $ 1,308,209 $5,722,060 $3,904,445
Basic and Diluted
Earnings
per Common Share $ 0.06 $ 0.08 $ 0.29 $ 0.26
Weighted-average Common
Shares Outstanding 19,143,615 14,238,657 18,735,944 13,945,937
CHINA AGRITECH, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOW
FOR THE YEAR ENDED DECEMBER 31, 2006 AND 2005
2006 2005
Cash flows from operating activities:
Net income $ 5,349,338 $ 3,675,879
Adjustments to reconcile net income
to net cash provided by (used in)
operating activities:
Stock based compensation (3,597) --
Minortiy Interest 862,756 631,113
Depreciation 155,292 102,901
Loss on disposal of fixed assets -- --
Delivery charges -- --
Decrease / (Increase) in current
assets:
Restricted cash 174,972 (275,000)
Accounts receivable (3,357,026) (2,759,236)
Prepayments and other receivables (5,839) (191,603)
Inventory (1,502,205) 487,630
Advances to suppliers (5,769,071) (1,914,346)
(Decrease) / Increase in current
liabilities:
Accounts payable 262,020 (281,234)
Tax payables 365,731 131,998
Accrued expenses and other
payables 305,739 280,280
Net cash provided by (used in)
operating activities (3,161,889) (111,618)
Cash flows from investing activities:
Acquisition of property & equipment (1,541,812) (8,238)
Proceeds from disposal of fixed assets -- --
Net cash used in investing activities (1,541,812) (8,238)
Cash flows from financing activities:
Repayment of installment loan -- --
Payments to shareholders / related
parties (51,312) (1,026,846)
Capital contributed 11,079,705 1,350,000
Dividend paid -- --
Net cash provided by (used in)
financing activities 11,028,393 323,154
Effect of exchange rate change on cash
and cash equivalents (150,513) 14,468
Net increase in cash and cash equivalents 6,174,178 217,766
Cash and cash equivalents, beginning of year 255,831 38,065
Cash and cash equivalents, end of year $ 6,430,009 $ 255,831
Supplement disclosure of cash flow
information:
Income taxes paid $ 3,760,570 $ 3,043,223
Cash from issue of common stock
placed in escrow account $ 11,079,705 $ 1,350,000
For more information, please contact:
CCG Elite Investor Relations
Crocker Coulson, President
Leslie J. Richardson
Tel: +1-646-213-1915
Email: crocker.coulson@ccgir.com
China Agritech, Inc.
Yvonne Zhang
Tel: +86-10-5870-2280
* Revenue increases 52% to $8.6 million
* Net income increases 86% to $1.9 million
BEIJING, China, May 18 /Xinhua-PRNewswire-FirstCall/ -- China Agritech,
Inc. (OTC Bulletin Board: CAGC) ("China Agritech"), a leading manufacturer
of liquid organic fertilizer in China, today announced its financial
results for the first quarter ended March 31, 2007.
First Quarter Highlights
-- Revenue increased 52% year-over-year to $8.6 million
-- Newly established distribution network channel contributed 11% to first
quarter revenues
-- Net income increased 86% year-over-year to $1.9 million
First Quarter 2007 Results
Revenue for the first quarter 2007 increased 51.5% to $8.6 million,
from $5.7 million in the first quarter 2006. The increase in revenue for
the quarter was attributed to the sales of China Agritech's new products -
Green Vitality and Lulingbao IV which were not produced in the same period
of 2006. Net income increased to $1.9 million, up 85.8% from the first
quarter of 2006. Fully diluted earnings per share for the quarter were
$0.10, compared to fully diluted earnings per share of $0.05 in the first
quarter 2006. The number of diluted weighted average shares outstanding was
19.1 million in the first quarter of 2007, compared to 18.5 million in the
first quarter of 2006.
Commenting on the first quarter of 2007, Mr. Yu Chang, Chief Executive
Officer of China Agritech, said, "We are excited with both our top and
bottom line growth during the first quarter. We have dedicated the last
year to building out our capacity and establishing our distribution network
and we are pleased to finally see results from these efforts. Our new
facilities in Beijing and Anhui contributed to our revenue with the
production of Green Vitality. We have also recently finished the
test-running of the production process at our Chongqing factory and are now
in full production. Our fourth converting facility in Xinjiang is expected
to come online in the second quarter of 2007."
During the quarter, China Agritech successfully expanded its market
penetration to include the central and southern regions of China. The
company sold 152 metric tons of its Green Vitality fertilizer produced from
its Beijing and Anhui factories in these new regions which contributed 11%
to total revenue during the first quarter of 2007.
Gross profit for the first quarter 2007 was $4.5 million, up 60.0% from
$2.8 million in the first quarter 2006. Gross margin was 52.4%, compared to
49.6% in the same period a year earlier. Gross margin in the first quarter
2007 was favorably impacted by reduced material costs as a result of
improved production cost control measures as well as increased sales of
higher margin products.
Selling expenses during the quarter were $0.6 million, or 7.1% of
revenue compared to $0.5 million, or 8.3% of revenue, in the comparable
quarter in 2006. The decline in selling expense as a percent of revenue is
attributable to the company's rate of revenue increase being greater than
rate of selling expenses increase.
Administrative expenses during the quarter were $0.5 million, or 6.4%
of revenue, compared to $0.4 million or 7.2% of revenue in the same period
of 2006. The percentage decrease was positively impacted by more efficient
cost controls of administrative expenses.
Income from operations was $3.3 million, up 73.1% from $1.9 million in
the same period of 2006. Operating margin for the quarter was 38.9%
compared to 34.0% in the first quarter of 2006. The increase in operating
margin was due to a combination of improved operating efficiencies and
higher gross margin during the first quarter of 2007.
First quarter of 2007 net income was $1.9 million, up 85.8% from $1.0
million in the first quarter of 2006. Fully diluted earnings per share were
$0.10 for the first quarter 2007, compared to fully diluted earnings per
share of $0.05 for the same period a year earlier.
Financial Condition
As of March 31, 2007, China Agritech had $5.0 million in cash,
restricted cash and cash equivalents, working capital of $29.2 million and
no long-term debt. Days sales outstanding for the first quarter 2007 was
160 days. Shareholders' equity stood at $29.2 million, up from $26.9
million as of December 31, 2006.
Business Outlook
The peak selling time for China Agritech's fertilizer is during the
agricultural growing season which has just begun in China. Moreover, the
company is in the early stages of expanding its market penetration from the
northern region to include the central and southern regions of China. The
increased market penetration is supported by a multi-tier distribution
system which is expected to contribute to revenue growth for the rest of
2007. China Agritech is building its fourth new factory located in
Xinjiang, which it expects to put into production in late May, 2007. The
company has budgeted $1 million in capital expenditures for this factory.
China Agritech year-end guidance for 2007 in the range of $46.0 and $48.0
million in revenues and net income in the range of $8.4 and $8.6 million.
"We have started off the beginning of our peak selling season with
strong results which we expect will continue through the rest of the
season. We have shown progress in our ability to penetrate the southern and
central regions of China which significantly expands our customer base. Our
distribution network is fully established at the village level which is a
key component in supporting our expansion as we build a national brand in
liquid organic compound fertilizer. We also expect to see results in
penetrating international markets during the second half of this year,"
concluded Mr. Chang.
Conference Call Information
Management will conduct a conference call to discuss China Agritech's
first quarter financial results and provide a corporate overview. The
conference call will take place at 9:00 a.m. Eastern Time, on Friday, May
18, 2007. To participate in the conference call, please dial the following
number five to ten minutes prior to the scheduled conference call time:
(888) 482-0024. International callers should dial 617-801-9702. The pass
code for the call is 30478473.
If you are unable to participate in the call at this time, a replay
will be available on Friday, May 18, 2007 at 11:00 a.m. ET, through Friday,
May 25, 2007. To access the replay from the United States dial
888-286-8010, or 617-801-6888 if calling internationally. Enter the
conference ID number 20941076.
This conference call will be broadcast live over the Internet and can
be accessed by all interested parties on the China Agritech website at
http://www.chinaagritechinc.com . To listen to the live webcast, please go
to the China Agritech website at least fifteen minutes prior to the start
of the call to register, download, and install any necessary audio
software. For those unable to participate during the live broadcast, a
replay will be available shortly after the call on China Agritech's website
for 90 days.
About China Agritech
China Agritech is engaged in the development, manufacturing 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 its products
to farmers located in twelve provinces of China including: Heilongjiang,
Hebei, Liaonong, Jilin, Shandong, Inner Mongolia, Henan, Sichuan,
Guangdong, Xinjiang, Yunnan and Guizhou. For more information visit
http://www.chinaagritechinc.com .
The statements contained in this Release that are not purely historical
are forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of
1934, including without limitation, statements regarding the Company's
expectations, hopes, beliefs, intentions or strategies regarding the
future. These forward-looking statements are based on the Company's current
expectations and beliefs concerning future developments and their potential
effects on the Company. There can be no assurance that future developments
affecting the Company will be those anticipated by the Company. 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 the proprietary formula, the price of raw materials,
any liabilities from unknown harmful effects of the product, and adverse
weather conditions. The Company undertakes no obligation to publicly update
or revise any forward-looking statements, whether as a result of new
information, future events or otherwise, except as may be required under
applicable securities laws.
-- Financial Tables Below ---
CHINA AGRITECH, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
MARCH 31, DECEMBER 31,
2007 2006
(UNAUDITED)
ASSETS
Current Assets
Cash and cash equivalents $ 4,910,594 $ 6,430,009
Restricted cash 56,149 100,028
Accounts receivable, net 18,338,613 12,239,073
Inventories 2,852,716 1,322,244
Advances to suppliers 5,300,016 8,038,974
Prepayments and other receivables 386,673 382,463
Total Current Assets 31,844,760 28,512,791
Property, plant and equipment, net 2,467,794 2,514,123
Total Assets $ 34,312,554 $ 31,026,914
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable $ 93,016 $ 108,886
Accrued liabilities and other
payables 997,865 871,495
Amount due to related parties 1,191 954
Income tax payable 1,557,786 1,028,885
Total Current Liabilities 2,649,858 2,010,220
Minority Interests 2,415,601 2,160,575
Commitments -- --
Stockholders' Equity
Common stocks; $0.001 par value,
100,000,000 shares authorized,
19,143,615 shares issued and
outstanding 19,144 19,144
Additional paid in capital 12,620,248 12,619,049
Statutory reserve 3,103,240 2,790,916
Accumulated other comprehensive
income 1,105,936 601,288
Retained earnings 12,398,526 10,825,722
Total Stockholders' Equity 29,247,095 26,856,119
Total Liabilities and
Stockholders' Equity $ 34,312,554 $ 31,026,914
CHINA AGRITECH, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE MONTHS ENDED MARCH 31, 2007 AND 2006
MARCH 31,
2007 2006
(UNAUDITED) (UNAUDITED)
Net revenue $ 8,611,741 $ 5,685,397
Cost of revenue (4,100,825) (2,865,315)
Gross profit 4,510,916 2,820,082
Operating expenses
Selling expenses (614,002) (473,508)
Operating and
administrative
expenses (548,067) (411,465)
Total operating
expenses (1,162,069) (884,973)
Income from operations 3,348,847 1,935,109
Other income (expense)
Other (expense) income 27,896 (6,110)
Finance income
(expense) (209) 119
Total other income
(expense) 27,687 (5,991)
Income before income
taxes and
minority interest 3,376,534 1,929,118
Provision for income
taxes (1,260,055) (768,041)
Income before minority
interests 2,116,479 1,161,077
Minority interests (231,351) (146,749)
Net income 1,885,128 1,014,328
Other comprehensive
income
Foreign currency
translation
adjustment 504,648 74,292
Comprehensive income $ 2,389,776 $ 1,088,620
Basic and diluted
weighted
average shares
outstanding 19,143,615 18,503,615
Basic and diluted net
earnings
per share $ 0.10 $ 0.05
CHINA AGRITECH, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOW
FOR THE THREE MONTHS ENDED MARCH 31, 2007 AND 2006
March 31,
2007 2006
(UNAUDITED) (UNAUDITED)
Cash flows from operating activities:
Net income $ 1,885,128 $ 1,014,328
Adjustments to reconcile net income to net
cash used in operating activities:
Stock based compensation 1,199 --
Minority Interest 231,351 146,749
Depreciation 81,140 25,420
(Increase) Decrease in current assets:
Accounts receivable (5,944,426) (2,524,073)
Prepayment and other receivable 6,016 (1,385,464)
Inventory (1,340,544) (540,650)
Advances to suppliers 2,810,417 417,611
Increase (Decrease) in current liabilities:
Accounts payable (272,030) 909,967
Other payable 245,294 --
Tax payable 515,789 290,525
Accrued expenses (38,641) (9,303)
Net cash used in operating activities (1,819,308) (1,654,890)
Cash flows from investing activities:
Acquisition of property & equipment (34,811) (175,668)
Restricted cash 43,883 --
Net cash provided by (used in) investing
activities 9,072 (175,668)
Cash flows from financing activities:
Advance/repayment from/to related parties -- (51,251)
Advance from shareholders 1,246 --
Capital contributed -- 11,019,849
Net cash provided by financing activities 1,246 10,968,598
Net increase (decrease) in cash and cash
equivalents (1,808,989) 9,138,040
Effect of exchange rate change on cash and cash
equivalents 289,574 66,436
Cash and cash equivalents, beginning of year 6,430,009 255,831
Cash and cash equivalents, end of year $ 4,910,594 $ 9,460,307
Supplement disclosure of cash flow
information:
Interest expense paid $ -- $ 12
Income taxes paid $ 3,760,570 $ 565,712
For more information, please contact:
CCG Elite Investor Relations
Crocker Coulson, President, or
Leslie Richardson, Financial Writer
Tel: +1-646-213-1915
Email: crocker.coulson@ccgir.com
China Agritech, Inc.
Yvonne Zhang
Tel: +86-10-5870-2280
2007/06/13 11:48
1029 [Dow Jones] STOCK CALL: Goldman Sachs ups China Agri-Industries (0606.HK) to Neutral from Sell on recent stock pullback. Keeps target at HK$5.80. Says fuel ethanol is key earnings driver in FY08-09, oilseed processing business to remain major profit contributor in FY07. Says recent news about Beijing not issuing new licenses to new grain-based fuel ethanol projects, capacity expansion of existing plants not new. Similar guidance announced in December. Says there's no need for China Agri to adjust expansion plan as new plants likely to use non-grain feedstock, in line with government policy. Stock up 0.2% at HK$5.80.(JLI) Contact us in Hong Kong. 852 2802 7002; MarketTalk@dowjones.com (Delayed by 1 hour)
It poises to establish an upward trend after the recent consolidation. By technical analysis, the counter sets to penetrate the resistance at $5.50. Whenever it confirms a breakout from this critical point, the share price will probably extend the recent minor upward trend heading towards $5.80-level.
Meanwhile RSI-14 recoups the 50-mark level, which suggests the counter to be ready for a bounce.
Thanks to the strong buying interest from investment institutions on this China Play, it also supports the share price to climb higher.
China Agri-Industries Holdings (606, $5.22) 12M Target $7.0 Trading BUY
China Agri-Industries Holdings (CAIH) is a leading agricultural processor in the PRC. It will benefit from the fast growth in agricultural processing industry.
CAIH has already made its new expansion plan of fuel ethanol capacity, in line with China’s fuel ethanol policy to develop non-grain-based fuel ethanol projects.
As we expected, margin in oilseed processing segment improved significantly from 1.8% in 1H06 to 4.8% in 1H07 due to industry restructuring and management improvement.
Interim net profit of CAIH increased 95% yoy from $315mn (EPS: $0.11) in 1H06 to $615mn (EPS: $0.19) in 1H07 due to a sharp increase in gross margin of oilseed processing segment and brewing materials segment.
Corn price recently fell from RMB1,400 to RMB1,200 per ton. The retail prices for gasoline and fuel ethanol price have increased by 8% and 9% respectively with effect from November.
The counter is trading at 2007 PER of 15.5x. We reiterate BUY recommendation on CAIH with 12-month target price of $7.0, representing 16.6x 2008 earnings
China Agri-Industries (606, $5.20) 12M Target $6.30 BUY
Event: China Agri-Industries’ (CAI) non-grain fuel ethanol plant in Guangxi has started production.
The Guangxi plant has started trial production since December 2007. After months of operation, it has been now producing 100,000 metric tons of fuel ethanol which is sufficient to meet fuel ethanol consumption in Guangxi.
CAI is the largest fuel ethanol manufacturer and provider in China. Its business consists of three operating units, namely 100% of COFCO Bio-Energy (Zhaodong) Co., 20% of Jilin Fuel Ethanol Co. and 100% of Guangxi fuel ethanol project. Their production capacities of fuel ethanol are 180,000, 400,000 and 200,000 metric tons per annum respectively.
The progress of Guangxi production plant is in line with our forecast. We therefore maintain our EPS forecast fro CAI at $0.42 in 2008 and $0.48 in 2009.
Trading at 12.4x 2008 earnings, we believe the valuation of CAI is attractive. Maintain BUY on CAI with a 12- month target price of $6.30 based on 15x 2008 earnings.
Goldman Sachs downgrades China Agri-Industries to Sell from Buy, trims target to HK$3.35 from HK$3.70, based on 6.6X 2009 P/E after cutting 2008-10 EPS forecasts by 11%-51%;
House tips China fuel ethanol price to fall 35% this year, crushing margins to fall; expects gasoline demand will also be weaker due to macro slowdown.
"We suggest investors lock in short-term gains before more negative newsflow." Shares down 2.9% at HK$3.98.