China Agritech Provides Guidance for Fiscal 2008
February 19 2008 - 8:00AM
PR Newswire (US)
BEIJING, Feb. 19 /Xinhua-PRNewswire-FirstCall/ -- China Agritech,
Inc. (OTC:CAGC) (BULLETIN BOARD: CAGC) ('China Agritech', the
'Company'), a leading liquid fertilizer manufacturer company in
China, today announced guidance for the year ending December 31,
2008. For fiscal year 2008, China Agritech expects to generate
revenue of $60 - $62 million, and net income to $9.5 - $10 million
for earnings per share of $0.38 to $0.40. The Company also expects
its gross margin will be impacted as the lower margin granular
fertilizer begins to contribute a greater percentage of total
revenue in the second half of year 2008. In fiscal 2007, the
Company's guidance is for revenue to be in the range of $38.0 -
$40.0 million and net income to be in the range of $8.4 - $8.6
million for earnings per share of $0.34 to $0.35. China Agritech is
on track to construct its production facilities of organic granular
compound fertilizer with total planned capacity of 200,000 metric
tons by the end of 2008. The Company expects to finish the
construction of its first organic granular compound fertilizer
factory in Beijing by the end of February 2008. Production at this
facility is scheduled to begin in March 2008. China Agritech plans
to begin construction for the Heilongjiang and Xinjiang factories
in early April 2008. The Company is still evaluating the location
of the fourth organic granular compound fertilizer facility. 'We
are very pleased with the progress we have made to date and expect
continued growth going forward,' commented Mr. Yu Chang, CEO of
China Agritech. 'We continue to develop the market in Central,
Western and Southern regions of China through our distribution
network and the strategic alliance with Sinochem. We also expect to
our organic granular compound fertilizer segment will contribute to
both our top line and bottom line in 2008.' About China Agritech
Inc. China Agritech is engaged in the development, manufacture 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
twenty provinces of China including: Hainan, Anhui, Hubei, Jiangsu,
Jiangxi, Guangxi, Liaoning, Shanxi Heilongjiang, Hebei, Jilin,
Shandong, Inner Mongolia, Henan, Sichuan, Guangdong, Xinjiang,
Yunnan, Chongqing and Guizhou. For more information visit
http://www.chinaagritechinc.com/ . Safe Harbor Statement This press
release contains statements that constitute forward-looking
statements. These statements include descriptions regarding the
intent, belief or current expectations of the Company or its
officers with respect to the consolidated results of operations and
financial condition of the Company. These statements can be
recognized by the use of words such as 'expects,' 'plans,' 'will,'
'estimates,' 'projects,' 'intends,' or words of similar meaning.
Such forward-looking statements are not guarantees of future
performance and involve risks and uncertainties, and actual results
may differ from those in the forward-looking statements as a result
of various factors and assumptions. 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 proprietary formulas, the price of
raw materials, the Company's ability to fulfill its orders, actual
results differing from forecasted results, the Company's ability to
complete construction and begin production at its new factories
according to the time line discussed above , any liabilities from
unknown harmful effects of the product, and adverse weather
conditions. The Company has no obligation and does not undertake to
revise forward-looking statements to reflect future events or
circumstances. For more information, please contact: CCG Elite
Investor Relations Crocker Coulson, President Tel: +1-310-231-8600
x103 Email: China Agritech, Inc. Kelviz Lim Kok Siak, VP of Finance
Tel: +86-10-5962-1220 Email: DATASOURCE: China Agritech, Inc.
CONTACT: CCG Elite Investor Relations - Crocker Coulson, President,
+1- 310-231-8600 x103, or ; or China Agritech, Inc. - Kelviz Lim
Kok Siak, VP of Finance, +86-10-5962-1220, or Web Site:
http://www.chinaagritechinc.com/
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