-- 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-FirstCall/ -- China Dasheng
Biotechnology Company ("China Dasheng" or "the Company") (OTC:
CDBT) (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: 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 -- -- DATASOURCE: China Dasheng Biotechnology
Company CONTACT: China Dasheng Biotechnology Company: James Gao,
Vice President, Investor Relations at +1-908-938-2025 or Web site:
http://www.chinadashengbio.com/
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